Social Security, designed to pay retired workers, is a continuing income after retirement and covers about 64 million Americans, according to its website. However, despite how much you hear about Social Security in the news, a new survey finds that 30% of Americans still feel they need more education on the topic.

                By                    Yaёl Bizouati-Kennedy

Social Security Payment Schedule 2022: What Dates To Watch Out For2022 Stimulus Checks: Is Your State Giving Out Money This Year?

Considering that, on average, Social Security retirement benefits replace 40% of pre-retirement income for retirement beneficiaries, it’s never too early to understand how it works and which special situations you should be aware of.

“Your social security payment isn’t a sure thing. It depends on several factors, such as your average income, years worked, and the social security trust balance, which may change. So it would be best if you planned to save for your retirement independently,” he said.

If you feel like you’re lacking some knowledge about Social Security, here are some of the most important issues to understand.

POLL: Where Have You Cut Back Most Because of Inflation?

How You Qualify

In order to qualify for Social Security benefits, you need to be 62 or older, or disabled or blind, and “insured” by having enough work credits.

In addition, for applications filed on Dec. 1, 1996, or later, you must either be a U.S. citizen or lawfully present alien in order to receive monthly Social Security benefits, according to the Social Security website.

See: With A Recession Looming, Take These 3 Retirement Moves To Stay On Track

Americans start their eligibility by working and paying Social Security taxes, either through payroll deductions (required by the Federal Insurance Contributions Act, or FICA) or through income tax filings if you are self-employed (required by the Self-Employed Contributions Act, or SECA), AARP explains.

You qualify for Social Security by compiling credits when you pay Social Security taxes on your earnings. You can earn up to four credits per year. Workers qualify for Social Security retirement benefits when they reach 40 lifetime credits, AARP adds.

How Much You Get

Social Security benefit payments depend on how much you earned during your working career. Higher lifetime earnings result in higher benefits. If there were some years you didn’t work or had low earnings, your benefit amount may be lower than if you had worked steadily, according to SSA’s Social Security Matters website.  

It’s important to know that you can get Social Security retirement benefits as early as age 62. However, the benefits will be reduced. When you delay benefits beyond your full retirement age, the amount of your retirement benefit will continue to increase up until age 70.

Special Situations

The SSA explains that widows and widowers may qualify if he or she is:

  • Age 60 or older; or
  • 50 or older and disabled; or
  • Divorced, age 60 or older (age 50 if disabled), and was married to the other person for at least 10 years prior to divorce; or
  • Under age 60 and caring for the former couple’s child (under age 16 or disabled prior to age 22) and who is entitled to child’s benefits; or
  • Divorced, under age 60 and caring for his or her child (under age 16 or disabled prior to age 22) who is entitled to benefits on the other person’s record

“You can potentially claim benefits based upon the working records of an ex-spouse as long as you were married 10 or more years,” he said. “In all cases, it’s important to run the numbers. For example, should you claim based upon your own working record or your spouse’s (or ex-spouse’s)? When should you claim? And so on. It’s a big decision, so don’t be afraid to ask questions and enlist the help of a professional if needed.”

 To be eligible for the Social Security’s divorced spouse benefits benefit program, you must meet the following requirements:

  • Be at least 62 years old and not currently married
  • Be divorced from a person who receives Social Security retirement or disability benefits
  • Have been married to that person for at least 10 years before the date the divorce became final
  • Not be entitled to an equal or higher retirement or disability benefits

In any case, Rossman said that it’s definitely important to undestand how Social Security works the closer you get to retirement age.

“If you’re currently in your 20s, 30s or even 40s, I wouldn’t put a ton of thought into Social Security because a lot could change between now and when you’re eligible for benefits,” he said. “Once if you’re in your 50s or 60s, though, then it’s very important to understand what Social Security means for you. It’s confusing and I’m not surprised that many people have questions. The more complex your situation, the more you might benefit from a consultation with a financial advisor.”