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Younger Americans
face roughly a 1-in-5 chance of dying before reaching age 65. Survivors
benefits, which are paid to a deceased worker's family, can help
with financial problems that sometimes follow a worker's death by
providing continuing cash income.
The value of
Social Security survivors benefits for an average wage earner who
dies and leaves a spouse and two children is equivalent to a $322,000
life Insurance policy. Of course, Social Security benefits are paid
monthly and not in a one time payment.
The average
monthly payment for a family consisting of a widow(er) with two
children is about $1,400 per month. Social Security payments increase
based on the annual cost-of-living index -- something few private
Insurance plans offer.
Who, exactly,
can get survivors benefits? Children under 18 can get Social Security
survivors benefits, and so can a child who is under 19, but still
in high school . . . or a child who is 18 or older but who becomes
disabled before age 22. A widow(er) who is caring for children under
age 16 or disabled may receive benefits. A widow(er) age 60 or older,
or a widow(er) age 50 or older who is disabled, may receive benefits.
Today, Social
Security pays monthly survivor's benefits to 7.4 million Americans,
almost 2 million of whom are children.
For information
on how you earn survivors benefits for your family, see Earning
Credits and Qualifying for Benefits.
Disability
Benefits
SSA also protects
a worker who becomes severely disabled. It is important protection.
Studies show that a 20-year-old worker stands nearly a 3-in-10 chance
of becoming disabled before age 65.
Few workers
have private, long-term disability Insurance. But nearly all workers
do have Social Security disability protection, which is equivalent
to a $201,000 disability policy for an average income earner with
a spouse and two children.
Under Social
Security, workers are considered disabled if they have a severe
physical or mental condition that prevents them from working. The
condition must be expected to last for at least 12 months or to
result in death. Once benefits begin, they continue for as long
as the worker is disabled and cannot work. The disabled worker and
his or her eligible family members receive checks each month.
More than 4
million disabled workers under 65, and 1.7 million dependents (including
more than a million children) receive Social Security disability
benefits. The average monthly payment to a disabled worker is about
$780; for a disabled worker with a spouse and two or more children,
the average payment is about $1,200.
Social Security
disability Insurance is a program that workers, employers, and the
self-employed pay for with their Social Security taxes. You qualify
for these benefits based on your work history, and the amount of
your benefit is based on your earnings. For more details on qualifying
for Social Security disability Insurance, see Earning
Credits and Qualifying for Benefits.
Retirement
Benefits
Social Security
pays monthly retirement benefits to more than 30 million retired
workers and their families. More than 9 out of 10 Americans who
are age 65 or older get Social Security benefits.
Full retirement
benefits are now payable at age 65, with reduced benefits available
as early as age 62. The age for full benefits will gradually rise
in the future, until it reaches age 67 in 2027 for people born in
1960 or later. (Reduced benefits will still be available at age
62.)
Financial advisers
often tell people that, when they retire, they will need about 70
percent of pre-retirement income to live comfortably. By itself,
Social Security replaces about 60% of the pre-retirement earnings
of a low wage earner, 42% of an average wage earner, and 26% of
a high wage earner.
For more information
about qualifying for Social Security retirement benefits, see Earning
Credits and Qualifying for Benefits.
The
information provided in this website is not legal advice and should
not be interpreted as legal advice. This website is intended to
provide a basic understanding of this information in summary form.
This information may not be comprehensive, is subject to change,
and may not apply to all individual circumstances. Any information
received here should be confirmed with the appropriate government
agencies or with an attorney, particularly as it relates to your
individual circumstances. Your use of this website indicates your
agreement to be bound by our Terms
of Use.
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