How to Apply for Social Security

The Social Security Act, formerly known as the Economic Security Bill, was proposed in the year 1935. The purpose of social security is to provide retirement and disability income to the workers and their dependents. The proposal to introduce a plan, that would aid the elderly who had been rendered penniless on account of the stock market crash and the Great Depression of 1929, germinated in the mind of President Franklin D. Roosevelt in the year 1934. The bill was proposed and signed onto law in August 1935. In the article titled, "How is Social Security Funded", the funding mechanism and the issues related to social security funding were discussed in detail. A person has the right to apply for social security benefits or social security disability provided the following conditions are satisfied.

Eligibility Criteria for Receiving Social Security Benefits

Credits: In order to apply for social security retirement benefits, a person should have enough credits. Over the years, earnings required to earn social security credits have increased. People have to pay Social Security Tax on their earnings. The maximum taxable income, for social security for the year 2009, is $106,800. In order to earn one social security credit, in the year 2009, a person needs to earn $1090 per quarter as against $1050 required in the year 2008. A maximum of four credits can be earned in one calendar year. Generally, people need 40 credits in order to obtain retirement benefits.

Disability: In order to qualify for disability payments, the State Disability Determination Service has to ascertain the eligibility of the person to receive disability insurance. The waiting period between experiencing disability for the first time and receiving disability insurance is 6 months.

Retirement: A person has the option of claiming retirement benefits on attaining the age of 62. However, it would be sensible to wait till one attains or surpasses the full retirement age. On attaining the full retirement age, a person can claim the entire amount of benefits. If a person delays claiming benefits beyond the full retirement age, the person has the right to increased benefits.

How to Apply for Social Security - Applying for Social Security Benefits

A person who is eligible to receive social security benefits is expected to file an application with the Social Security Office. Online applications are also accepted. The applicant would have to furnish the following details:

For claiming social security, applicants would need their Social Security Number, date of birth, name of the bank and account number so that the benefits can be directly deposited; names and addresses of the employers for the past 2 years; W-2 or self-employment tax return for the previous year; amount of money earned during the last year; the amount of money expected to be earned in the current year and in some cases, the ensuing year. For claiming disability insurance, applicants would also be required to submit details of the illness, injury and the contact information of their health care provider. In case the applicant's spouse and dependents are also claiming benefits, they would need to furnish the required information. Erstwhile military personnel would be required to provide additional details like military discharge papers. For a detailed list of the documents, required to apply for social security, the applicants should visit the nearest social security office.

It is not enough if people know how to apply for Social Security, they should also be aware of the best time to avail these benefits. It has been estimated that the social security fund will be exhausted by the year 2037, on account of declining support benefit ratio. A declining support benefit ratio, due to the reduced birth and death rate, would mean less workforce supporting the ever increasing number of social security claimants. Hence, delaying claims can help people receive social security benefits for an extended period of time.