What Social Security is and who it covers

Social Security is a federal insurance program run by the Social Security Administration (SSA). It pays monthly benefits to workers who have reached retirement age, to workers who become disabled before retirement age, to the surviving family members of workers who die, and to some spouses and dependents. You earn the right to these benefits by working and paying Social Security taxes — the 6.2% that comes out of your paycheck, plus the 6.2% your employer pays on your behalf.

Not every job is covered by Social Security. Federal employees hired before 1984, some state and local government workers, and certain railroad employees are covered by different pension systems instead. If you have worked in one of these systems, your Social Security benefits may be reduced or you may not receive them at all, depending on when you were hired and what you earned.

You do not need to be a U.S. citizen to receive Social Security benefits, but you must have a valid Social Security number and have worked in covered employment. Non-citizens who are lawful permanent residents, refugees, asylees, or in certain other immigration statuses can receive benefits if they meet the work requirements.

Key Takeaways

  • Social Security retirement benefits begin at age 62, but the monthly amount is smaller if you claim before your full retirement age, which ranges from 66 to 67 depending on your birth year.
  • You earn Social Security credits by working and paying taxes; you need 40 credits (roughly 10 years of work) to receive retirement benefits, though fewer credits are needed for disability or survivor benefits.
  • Your benefit amount is based on your highest 35 years of earnings, adjusted for inflation, so working longer can increase your monthly payment.
  • You can check your earnings record and estimated benefits by creating an account at ssa.gov, where you can also see how much you have paid into the system.
  • Spousal and survivor benefits are available to some family members even if they have not worked, but the total amount paid to a family cannot exceed a certain percentage of the worker's benefit.

How work credits and earnings history determine your benefit

Social Security uses a credit system to track your work. In 2024, you earn one credit for every $1,730 in covered wages (this amount changes each year). You can earn a maximum of four credits per year, regardless of how much you earn. To receive retirement benefits, you need 40 credits total — which typically means about 10 years of work spread over your lifetime, though the years do not have to be consecutive.

Your actual benefit amount is calculated from your highest 35 years of earnings. The SSA adjusts your past earnings for inflation using a formula that accounts for wage growth in the economy. If you have worked fewer than 35 years, zeros are included in the calculation, which lowers your average. This is why working longer — even part-time — can increase your monthly benefit, because a higher-earning year can replace a year with lower or zero earnings.

You can view your complete earnings record and estimated benefit amounts by creating a my Social Security account at ssa.gov. This account shows you exactly what the SSA has on file for your work history. If you spot an error — a missing year, an employer name misspelled, or wages recorded under the wrong name — you can report it to the SSA. Corrections must usually be made within three years, three months, and 15 days of the year the wages were earned.

When you can start receiving benefits and how age affects the amount

You can claim Social Security retirement benefits as early as age 62, but the monthly payment will be permanently reduced compared to what you would receive at your full retirement age. Your full retirement age depends on your birth year: it is 66 for people born between 1943 and 1954, and it rises gradually to 67 for people born in 1960 or later. If you were born between 1955 and 1959, your full retirement age falls somewhere between 66 and 67.

If you claim at 62 instead of at your full retirement age, your benefit is roughly 30% lower. If you delay claiming past your full retirement age, your benefit increases by about 8% for each year you wait, up until age 70. This means someone born in 1960 who waits until 70 to claim receives about 24% more per month than someone who claims at their full retirement age of 67.

The decision of when to claim depends on your health, life expectancy, financial needs, and whether you plan to work. If you claim before your full retirement age and continue working, your benefits will be reduced by $1 for every $2 you earn above a certain limit (in 2024, that limit is $23,400 per year). Once you reach your full retirement age, there is no earnings limit — you can work and receive your full benefit.

Spousal and survivor benefits for family members

If you are married, your spouse may be able to receive benefits based on your work record even if they have not worked or have not worked long enough to receive their own benefit. A spouse can claim at age 62 (with a reduced amount) or at full retirement age (for the full spousal benefit, which is typically 50% of the worker's benefit). A spouse caring for a child under age 16 can claim at any age.

If you die, your surviving spouse, children, and dependent parents may receive survivor benefits. A widow or widower can claim at age 60 (or age 50 if disabled), or at any age if caring for a child under 16. Each child under 19 (or 19 if still in high school) can receive a benefit. The total amount paid to all family members combined cannot exceed 150% to 180% of what the worker would have received, so individual payments are reduced if the family total would exceed that cap.

Divorced spouses have similar rights: if the marriage lasted at least 10 years, a former spouse can claim benefits based on your record without reducing your own benefit or your current spouse's benefit. The ex-spouse must be at least 62 years old (or any age if caring for a child under 16), and you must be at least 62 as well.

Disability benefits and how they differ from retirement

Social Security Disability Insurance (SSDI) pays benefits to workers under full retirement age who have a medical condition that prevents them from working and is expected to last at least 12 months or result in death. You do not have to be a certain age to receive SSDI — you only need enough work credits, which is fewer than the 40 required for retirement. The number of credits you need depends on your age when you become disabled.

To receive SSDI, you must provide medical evidence of your condition. The SSA has a list of conditions that automatically may have access to (called the Blue Book), but you can also show that your condition prevents you from doing any substantial work, even if it is not on the list. The process of being found disabled typically takes several months, and many initial claims are denied. You can request reconsideration, file an appeal, or request a hearing before an administrative law judge.

Once you are approved for SSDI, you receive benefits until you reach full retirement age, at which point your SSDI converts to a retirement benefit (the amount stays the same). Family members — spouse, children, and dependent parents — can also receive benefits based on your SSDI record, just as they can with retirement benefits.

Taxes on benefits and how to report changes

Depending on your total income, some of your Social Security benefits may be subject to federal income tax. If you are single and your combined income (adjusted gross income plus half your Social Security benefits plus tax-exempt interest) exceeds $25,000, up to 50% of your benefits may be taxable. If it exceeds $34,000, up to 85% may be taxable. For married couples filing jointly, the thresholds are $32,000 and $44,000.

You do not pay Social Security tax (the 6.2% payroll tax) on your benefits once you are receiving them. However, if you continue working while receiving benefits before your full retirement age, you will continue to pay Social Security tax on your wages, and your benefits will be reduced if you earn above the annual limit.

You must report certain changes to the SSA, including changes in your work status, living situation, marital status, or custody of children. You can report changes through your my Social Security account, by phone at 1-800-772-1213, or in person at your local Social Security office. Failing to report changes can result in overpayments that you may have to repay.

How to check your record and plan for benefits

The easiest way to view your Social Security information is to create a my Social Security account at ssa.gov. You will need your Social Security number, email address, and a way to verify your identity (usually a phone number or financial account). Once you are logged in, you can see your earnings record, your estimated benefit at different claiming ages, and your payment history if you are already receiving benefits.

The my Social Security account also shows you an estimate of what your spouse or children might receive based on your record. These estimates assume you continue working at your current pace until retirement age. If you plan to retire earlier or later, or if your earnings are expected to change significantly, the estimate may not be accurate.

If you do not have internet access or prefer to speak with someone, you can call the SSA at 1-800-772-1213 (TTY 1-800-325-0778) to request a paper statement or to ask questions about your record. You can also visit your local Social Security office in person, though wait times can be long. Many offices now offer appointments, which you can schedule online.

Frequently Asked Questions

Can I receive Social Security if I have not worked 10 years?

Not for retirement benefits — you need 40 credits, which typically requires about 10 years of work. However, if you become disabled, you may need fewer credits depending on your age. Survivor benefits for your family may also be available with fewer than 40 credits if you die while working.

What happens to my benefits if I work after I start receiving them?

If you claim before your full retirement age and earn more than the annual limit (in 2024, $23,400), your benefits are reduced by $1 for every $2 you earn above that amount. Once you reach your full retirement age, you can earn any amount without a reduction. The SSA will recalculate your benefit at full retirement age to account for the months you did not receive a full payment.

Can I change my mind after I claim benefits?

If you claimed within the last 12 months, you can withdraw your process and repay all benefits received. This resets your claim and allows you to claim again later at a higher amount. After 12 months, you cannot withdraw, but you can suspend your benefits at full retirement age to let them grow until age 70.

How much will my spouse receive based on my record?

A spouse at full retirement age receives roughly 50% of your full retirement benefit. A spouse claiming at 62 receives a smaller amount. The exact percentage depends on your spouse's age when they claim and whether they have their own work record. Family members' benefits combined cannot exceed 150% to 180% of your benefit.

What if I think there is an error in my earnings record?

Log into your my Social Security account and review your earnings history. If you see a mistake, contact the SSA with your W-2 forms or tax returns as proof. Corrections must generally be requested within three years, three months, and 15 days of the year the wages were earned, though exceptions exist for certain situations.