Looking into Social Security benefits can be a very emotional process. What’s important to know before applying for Social Security is that, depending on your situation, the allowed benefits are different for everyone. To help you determine how much in benefits you will receive, we will take a closer look into 3 of the main situations where people apply for Social Security benefits.
If you’re declared disabled by the Social Security Administration (SSA), will be able to receive monthly payments. Instead of giving the long, confusing formula used to calculate your monthly payment, let’s just look at some numbers. During the year of 2014, the average amount of SSDI benefits was $1,148 per month. Now, no matter what your situation is, the maximum allowed per month is $2,642.
When it comes to retirement, you will need to have 40 Social Security credits to claim your benefits. That comes out to be 10 years of work. Your actual benefit payment is decided on how much you have earned during your working career. The higher your lifetime earnings are, the more benefits you will receive. If you happen to have a year where you did not work, or did not work consistently over the years, your benefits will be reduced.
Besides how long you worked, your retirement age also plays a part in how much in benefits you receive. The earliest possible age of retirement for Social Security is 62 years old. The earlier you retire, the lower the amount of benefits you will receive. For example, if you retire at 68, you will receive more benefits than if you retired at 64.
Death is a topic nobody likes to discuss, but it’s something anyone can experience. There are two ways in which you can receive benefits when there is a death. The first scenario is if you’re dying and trying to plan for your survivors, or remaining family members. In this case, your family is entitled to benefits if you have earned enough Social Security credits through your work. Although the number of credits needed depends on your age, it won’t exceed 40 credits. The younger you are, the smaller amount of credits are required. Just for a reference, in 2015 one credit will equal $1,220 of income and you can earn up to 4 credits a year. The second scenario is if you’re the survivor. All of information above applies to you as well, but this requires you to do planning.
Trying to give each one of you an exact answer of what you will earn is impossible but there are ways to find out your self. To find out exact numbers when it comes to Social Security benefits, the SSA has provided everyone with online benefit calculators. This is the best way to estimate what benefits you can receive if you were to get accepted. Since we can’t just tell you what you can receive, be sure to explore the calculators and all your options to get a better understanding.
If you have any questions about Social Security benefits or would like some assistance with getting started, Grech Law Firm is here to guide you through the application process from start to finish. Whether you’re ready to apply or need help determining if you qualify, Grech Law Firm will do all we can to help you get the benefits you deserve. Call (586) 203-3125 to get started and schedule your free consultation.