Social Security Disability

Social Security: A Simple Concept

Social Security helps not only older Americans, but also workers who become disabled and families in which a spouse or parent dies. Today, about 164 million people work and pay Social Security taxes and about 50 million people receive monthly Social Security benefits.

Most beneficiaries are retirees and their families—about 34 million people.

But Social Security was never meant to be the only source of income for people when they retire. Social Security replaces about 40 percent of an average wage earner’s income after retiring, and most financial advisors say retirees will need 70 percent or more of pre-retirement earnings to live comfortably. To have a comfortable retirement, Americans need much more than just Social Security. They also need privateto live comfortably. To have a comfortable retirement, Americans need much more than just Social Security. They also need private pensions, savings and investments.

The Social Security Administration wants you to understand what Social Security can mean to you and your family’s financial future. This publication, Understanding The Benefits, explains the basics of the Social Security retirement, disability and survivors insurance programs.

The current Social Security system works like this: when you work, you pay taxes into Social Security. The tax money is used to pay benefits to:

• People who already have retired;

• People who are disabled;

• Survivors of workers who have died;
and

Dependents of beneficiaries.

The money you pay in taxes is not held in a personal account for you to use when you get benefits. Your taxes are being used right now to pay people who now are getting benefits. Any unused money goes to the Social Security trust funds, not a personal account with your name on it.

Social Security is more than retirement

Many people think of Social Security as just a retirement program. Although it is true that most of the people receiving Social Security receive retirement benefits, many others get Social Security because they are:

• Disabled; or

• A spouse or child of someone who gets
Social Security; or

• A spouse or child of a worker who died; or

• A dependent parent of a worker who
died.

Depending on your circumstances, you may be eligible for Social Security at any age. In fact, Social Security pays more benefits to children than any other government program.

Your Social Security taxes

The Social Security taxes you and other workers pay into the system are used to pay for Social Security benefits.

You pay Social Security taxes on your earnings up to a certain amount. That amount increases each year to keep pace with wages. In 2008, that amount is $102,000.

Medicare taxes

You pay Medicare taxes on all of your wages or net earnings from self-employment. These taxes are used for Medicare coverage.


Social Security: A Simple Concept What You Need To Know About Social Security While You Are Working What You Need To Know About Benefits Benefits For Your Family When You Are Ready To Apply For Benefits Supplemental Security Income (SSI) Program Right To Appeal Medicare	Social Security: A Simple Concept Social Security helps not only older Americans, but also workers who become disabled and families in which a spouse or parent dies. Today, about 164 million people work and pay Social Security taxes and about 50 million people receive monthly Social Security benefits. Most beneficiaries are retirees and their families—about 34 million people. But Social Security was never meant to be the only source of income for people when they retire. Social Security replaces about 40 percent of an average wage earner’s income after retiring, and most financial advisors say retirees will need 70 percent or more of pre-retirement earnings to live comfortably. To have a comfortable retirement, Americans need much more than just Social Security. They also need privateto live comfortably. To have a comfortable retirement, Americans need much more than just Social Security. They also need private pensions, savings and investments. The Social Security Administration wants you to understand what Social Security can mean to you and your family’s financial future. This publication, Understanding The Benefits, explains the basics of the Social Security retirement, disability and survivors insurance programs.	The current Social Security system works like this: when you work, you pay taxes into Social Security. The tax money is used to pay benefits to: • People who already have retired; • People who are disabled; • Survivors of workers who have died; and Dependents of beneficiaries. The money you pay in taxes is not held in a personal account for you to use when you get benefits. Your taxes are being used right now to pay people who now are getting benefits. Any unused money goes to the Social Security trust funds, not a personal account with your name on it. Social Security is more than retirement Many people think of Social Security as just a retirement program. Although it is true that most of the people receiving Social Security receive retirement benefits, many others get Social Security because they are: • Disabled; or • A spouse or child of someone who gets Social Security; or • A spouse or child of a worker who died; or • A dependent parent of a worker who died. Depending on your circumstances, you may be eligible for Social Security at any age. In fact, Social Security pays more benefits to children than any other government program. Your Social Security taxes The Social Security taxes you and other workers pay into the system are used to pay for Social Security benefits. You pay Social Security taxes on your earnings up to a certain amount. That amount increases each year to keep pace with wages. In 2008, that amount is $102,000. Medicare taxes You pay Medicare taxes on all of your wages or net earnings from self-employment. These taxes are used for Medicare coverage.
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