This chapter is about social security. The chapter begins with a discussion of eligibility requirements. Next, fully insured and currently insured status is covered. Following this, various benefits are identified, including retirement benefits, disability benefits, spousal benefits, and survivor benefits (mother’s or father’s, children’s, and widow or widower’s). | Social Security covers: most private sector employees most self-employed members of the US Armed Forces Social Security excludes: Federal employees hired before 1984 certain state and local employees railroad employees covered under the Railroad Retirement System Copyright 2009, The National Underwriter Company Social Security Benefits create a vital social “safety net” by providing at least a minimal income flow to disabled or retired workers or to survivors of deceased worker Benefits retirement disability spouse’s benefit survivor’s benefit mother’s or father’s benefit child’s benefit widow or widower’s benefits Copyright 2009, The National Underwriter Company Social Security Facts 96% of all workers are covered under Social Security - 53% of workforce has no private pension coverage - 32% of workforce has no savings set aside specifically for retirement More than 9 in 10 of those aged 65 and older receive Social Security benefits - for 2/3 it is more than 50% of retirement income - for 22% it is ONLY source of income Source: Social Security Administration; Copyright 2009, The National Underwriter Company Source: Social Security Administration; Social Security Beneficiary Data – Dec. 2006 Who Receives Number Total Amount Avg. Monthly Benefit Retired workers 31 million $31 billion $1,044 Dependents of retired 3 million $ billion Disabled workers million $ billion $833 Dependents of disabled million $ billion Survivors million $ billion $895 Copyright 2009, The National Underwriter Company Source: Social Security Administration; Eligibility Most Social Security benefits require a person to be fully insured or currently insured A person becomes insured by acquiring a certain number of quarters of coverage Copyright 2009, The National Underwriter Company Eligibility A quarter is a calendar quarter; a 3 month period ending: Mar 31 Jun 30 Sept 30 Dec 31 In 2009 – . | Social Security covers: most private sector employees most self-employed members of the US Armed Forces Social Security excludes: Federal employees hired before 1984 certain state and local employees railroad employees covered under the Railroad Retirement System Copyright 2009, The National Underwriter Company Social Security Benefits create a vital social “safety net” by providing at least a minimal income flow to disabled or retired workers or to survivors of deceased worker Benefits retirement disability spouse’s benefit survivor’s benefit mother’s or father’s benefit child’s benefit widow or widower’s benefits Copyright 2009, The National Underwriter Company Social Security Facts 96% of all workers are covered under Social Security - 53% of workforce has no private pension coverage - 32% of workforce has no savings set aside specifically for retirement More than 9 in 10 of those aged 65 and older receive Social Security benefits - for 2/3 it is more than 50% of retirement
