When it comes to Social Security, many of us depend on the system to provide financial support during retirement, during disability, or after the loss of a loved one. However, the system isn't without its flaws, and many beneficiaries are unaware of the issues that can impact their benefits.

Avoid Applying for the Wrong Social Security Program

Social Security offers several programs, each designed to meet specific needs, such as retirement, disability, or survivors’ benefits. Applying for the wrong program can lead to receiving less than you deserve.

SSDI (Social Security Disability Insurance): SSDI is based on your work history and earnings. If you’ve paid into Social Security through payroll taxes and have earned enough work credits, you may qualify. Typically, you must have worked at least five of the last ten years to be eligible. Younger individuals, under the age of 24, may qualify with fewer work credits. Please click here to learn more.

SSI (Supplemental Security Income): SSI is a need-based program for individuals with limited income and resources, regardless of their work history. Payments are usually lower than SSDI and are intended to cover basic living needs.

Concurrent Benefits: In some cases, you might qualify for both SSDI and SSI, which is known as concurrent benefits. This occurs when your SSDI payment is low due to limited work history or low earnings. SSI can supplement your income to meet basic living expenses.

Disabled Adult Child (DAC) Benefits: If you became disabled before age 22, you might qualify for benefits based on your parent's Social Security record. DAC benefits can be higher than SSI and are not affected by your income or resources, offering more financial support.

Widow’s or Widower’s Benefits: If you’re a widow or widower, you may be eligible for benefits based on your deceased spouse’s record. You can claim these benefits as early as age 50 if you are disabled.

Why It Matters:

Applying for the wrong program or overlooking specific benefits can result in lower payments. SSDI, concurrent benefits, DAC, and widow’s benefits often provide more financial support than SSI. Additionally, applying for programs other than SSI may make you eligible for Medicare. It's crucial to apply for the right program to maximize your benefits.

What You Should Do:

Before applying, take the time to understand the different Social Security programs and your eligibility. Consulting with a Social Security expert can help you avoid common mistakes and ensure you receive the maximum benefits.

Life Changes and Your Social Security Benefits

Significant life events not only affect your personal life but can also have a major impact on your Social Security payments. Here’s how these changes can influence your benefits:

• Marriage: If you remarry, it could affect any spousal benefits you're receiving based on a previous marriage. For those receiving their own Social Security benefits, marriage typically doesn’t affect payments. However, for SSI recipients, marriage can reduce benefits, so it's important to notify the SSA to avoid overpayments.

• Divorce: After a divorce, you may be eligible for spousal benefits based on your ex-spouse’s earnings if your marriage lasted at least 10 years. Many people are unaware of this benefit, which can provide additional financial support if your own work history is limited.

• Death of a Spouse: If your spouse passes away, you may be eligible for survivor benefits, which could increase your benefits if your spouse had higher earnings. Applying promptly for these benefits can help maintain your financial stability during a difficult time.

• Spouse Retires or Becomes Disabled: When your spouse retires or becomes disabled, you may qualify for spousal benefits based on their earnings record, potentially increasing your monthly payments. To be eligible, your spouse must already be receiving SSDI or retirement benefits.

• Birth of a Child: If you’re receiving disability benefits, the birth of a child may entitle you to additional auxiliary benefits. Be sure to report the birth to the SSA so they can help secure additional support for your family.

Why It Matters:

Failing to report life changes to the SSA can lead to incorrect payments. Overpayments may result in repayment obligations, while underpayments can leave you without benefits you’re entitled to.

Check Your Social Security Earnings Record Regularly

Your Social Security benefits are calculated based on your lifetime earnings, specifically the average of your highest 35 years of earnings. Errors in your record can significantly reduce the benefits you receive.

Common causes of errors include:

• Clerical mistakes: Simple data entry errors can result in inaccuracies.

• Employer reporting errors: If your employer reports your earnings under the wrong Social Security number, it can reduce your reported earnings.

• Identity theft: Someone else using your Social Security number could lead to discrepancies in your earnings record.

What You Should Do:

Regularly check your Social Security statement through your mySSA account. If you spot any discrepancies, contact the SSA immediately to correct your record. Addressing these issues early ensures you receive the full benefits you've earned.

Conclusion

Navigating Social Security benefits can be challenging, but understanding the different programs and how life changes impact your benefits is crucial for maximizing your financial security. From applying for the right program to staying informed about your eligibility, small decisions today can make a significant difference in the benefits you receive tomorrow.

Don’t leave your benefits to chance. Whether you're applying for the first time or reassessing your current benefits, consulting with a Social Security expert can provide invaluable guidance. Contact us today to schedule a consultation and let us help you make the most of your Social Security benefits!

Photo by micheile henderson