10 Things to Know About Social Security Benefits
Social Security provides benefits to more than 68 million people, and those monthly payments have an enormous impact on older Americans’ financial health. According to Census Bureau data:
• Social Security accounts for at least 50 percent of income for more than half of households headed by someone 65 or older.
• It provides nearly 80 percent of income for 1 in 5 such households.
• It kept 27.6 million people out of poverty in 2023.
An institution that looms so large in American life is bound to generate questions about what it does and how it works. Here are the answers to some of the most frequently asked questions about Social Security. You'll find more detailed information on these and many more issues in AARP's Navigating Social Security knowledge base.
1. Is Social Security just for retired workers?
No. As of August 2024, about three-quarters of beneficiaries were retirees. The remainder were spouses, ex-spouses and children of retirees (3.8 percent); people with disabilities and their families (12.3 percent); and survivors of deceased beneficiaries (8.5 percent).
2. At what age can I start collecting Social Security benefits?
You can begin receiving retirement benefits at age 62, but your payments will be greater if you wait until your full retirement age (between 66 and 67, depending on year of birth). If you are eligible for survivor benefits or Social Security Disability Insurance (SSDI), you can start collecting earlier.
3. How do I sign up for Social Security?
You can apply for retirement, spousal or disability benefits online, by phone at 800-772-1213 or in person at your local Social Security office. For survivor benefits, you can apply by phone or in person. For office visits, the Social Security Administration (SSA) strongly recommends calling ahead to make an appointment.
4. How long do I need to work to become eligible for benefits?
For retirement benefits, at least 10 years. Social Security uses a system of credits, which you collect by working and paying Social Security taxes. You can earn up to four credits a year, and you need 40 credits to qualify for retirement benefits. The credit threshold may be lower for disability benefits.
