If you’ve ever wondered how much money you could receive when you retire or if you’re qualified for disability benefits, you’ve probably learned that Social Security isn’t as straightforward as it appears at first glance. It is true that millions of people in the United States get it on a monthly basis, but each check is subject to a series of criteria that are not usually well understood.
The Social Security Administration (SSA) does not automatically transfer funds to individuals who reach a specific age. To begin receiving your much-needed monthly payment, you must meet certain standards, which, while simple to grasp, are not usually possible to meet in practice. What exactly are the requirements? Although they vary based on the benefit you apply for, there are three important factors to remember.
That is why, before you reach retirement age or become disabled, you should understand the conditions that may decide whether or not you are eligible for monthly Social Security benefits.
First crucial requirement: have worked long enough
The first and most essential criteria for receiving Social Security is that you have worked and paid enough taxes during your working life. It is obvious, but many individuals are oblivious of key nuances. To receive full retirement benefits, you must have accrued 40 work credits. This basically means that you worked for around ten years in total and paid taxes on your earnings during that time.
Does that imply you must have worked consistently for ten years? Not necessarily. You may have worked temporary jobs, seasonal jobs, or taken significant vacations throughout your career. What matters is the total quantity of time worked. However, if you worked less, even if you earned a lot of money in that short period, you may not have earned enough credits to be eligible for full benefits.
For those seeking for disability payments, however, the credits required are determined by their age at the time of the application. For example, a young person who becomes disabled early in life may qualify with less credits since they have had less opportunity to acquire them.
Second requirement: the age to begin collecting
The age at which you decide to apply for Social Security has a far greater impact than you may realize. Officially, you can begin collecting at age 62, but here’s the catch: if you start early, your monthly income will be significantly smaller for the rest of your life. That is why there is something called the “full retirement age,” which ranges from 66 to 67 years old, depending on your birth year.
If you wait until you reach this full age to collect, you will receive the whole benefit. However, if you wait even longer, until you reach 70, the SSA will reward you with a higher monthly amount. This rise will continue for as long as you live. So, while the desire to collect at age 62 is strong, it’s important to consider your options. It is not just a matter of age, but also of how much money you will receive each month for the next several years.
The third criteria is your legal status in the United States
Finally, your legal standing is important. Although many people believe that you must be a US citizen to receive Social Security, this is not always the case. You can collect it as a legal resident if you have contributed enough to the system and met certain residency requirements.
However, if you are a foreigner or permanent resident and decide to relocate outside of the United States, things alter. Some countries allow you to continue collecting freely, while others impose significant restrictions. For example, if you receive SSI (Supplemental Security Income) benefits, you must continually reside in the United States. If you relocate abroad for more than a month, you may automatically lose your benefits.
As a result, if you are not a citizen but have paid into the system for years, you should understand how your location may affect your monthly contribution before making any decisions that jeopardize your financial security.
How to ensure that you genuinely meet all of these standards
The simplest approach to ensure that you meet these standards is to create a free personal account on the SSA’s official website. There, you will have immediate access to your work history, credits earned, and updated estimations of what you can expect to receive when you retire.
By doing this ahead of time, you can identify and repair any inaccuracies in your work history before the critical moment arrives. Because, while it may appear paradoxical, knowing how much you will gather from the start is considerably easier if you start early and thoroughly inspect everything.