Monthly payments based on lifetime earnings record

Eligibility is based on work credits (quarters of coverage)

Benefit amount is adjusted for claiming age

For workers who become unable to work due to a severe condition

Requires sufficient work history and SSA’s definition of disability

Provides monthly cash benefits and may lead to Medicare eligibility after a waiting period

Benefits for eligible spouses, children, and sometimes dependent parents

Based on the deceased worker’s earnings record

Includes one-time death payment in limited situations

Separate from Social Security payroll-funded benefits

For aged, blind, or disabled individuals with limited income/resources

Funded by general tax revenues (not FICA)

Employees and employers each pay a share (FICA)

Self-employed pay via SECA

Taxes apply up to an annual wage base limit

Old-Age and Survivors Insurance (OASI) Trust Fund

Disability Insurance (DI) Trust Fund

Treasury securities hold reserves; benefits are paid from these funds

Current workers’ contributions help pay current beneficiaries

Demographics (aging population, worker-to-beneficiary ratio) affect long-term finances

Earned by working and paying Social Security taxes

Number of credits needed varies by benefit type and age

Different rules depending on retirement/survivors/disability benefits

Varies by birth year

Determines standard benefit (Primary Insurance Amount)

Early claiming (as early as 62) reduces monthly benefit permanently

Delayed claiming (up to 70) increases monthly benefit via delayed retirement credits

Earnings history is wage-indexed

Uses highest-earning years (typically 35 years) to compute AIME

Applies a progressive formula to determine PIA

Annual adjustments tied to inflation measures

Helps maintain purchasing power over time

Spousal benefit based on worker’s record under certain rules

Divorced spouse benefits may apply if marriage duration and other criteria are met

Family maximum may cap total benefits paid on one worker’s record

Earnings test may reduce benefits before FRA if income exceeds limits

After FRA, no earnings test reduction

Benefits withheld due to earnings test can be credited later via recalculation

Portion of benefits may be taxable depending on combined income

Rules differ for federal vs. state taxation

Federal health insurance program mainly for:

Automatic enrollment often occurs for those already receiving Social Security retirement benefits

Some must actively enroll during initial/special/general enrollment periods

Part A (Hospital Insurance)

Part B (Medical Insurance)

Part C (Medicare Advantage)

Part D (Prescription Drug Coverage)

Part B and Part D premiums may be higher for higher-income beneficiaries (IRMAA)

Deductibles, copayments, coinsurance apply depending on coverage

Private supplemental plans for Original Medicare (A and B)

Helps cover cost-sharing; standardized plan options in many states

Employer coverage rules differ by employer size and status (active vs. retiree)

COBRA, retiree plans, and TRICARE/VA coordination have specific rules

Medicaid may assist with premiums/cost-sharing for low-income beneficiaries (dual eligibility)

Retirement: typically a few months before desired start date

Medicare: around the Initial Enrollment Period near age 65 unless automatically enrolled

Disability: as soon as disability prevents substantial work

Online, by phone, or in-person (availability may vary)

Required information: identity, work history, earnings, family details, bank info for direct deposit

Benefit start dates and back pay rules differ by program

Appeals process exists for denied claims (especially disability)

Tradeoff: earlier income vs. higher lifetime monthly amount

Longevity expectations, spouse benefits, and need for cash flow matter

Coordinating claim ages to protect survivor income

Understanding survivor benefit eligibility and timing

COLA helps, but healthcare and living costs may rise differently than CPI measures

Part-time work impacts benefits differently before/after FRA

Continuing to work can raise benefits if it replaces lower-earning years in the 35-year calculation

Late enrollment penalties may apply for Part B and Part D without creditable coverage

Special Enrollment Periods can avoid penalties in certain cases