About Social Security Benefits

Social Security has been around since 1938 and it provides benefits for millions of Americans, including the disabled and retired people along with life insurance for all workers. Social Security calculates benefits based on work history of the applicant. The worker must have worked ten years to receive Social Security benefits.

Calculations of Benefits

Social Security calculates your benefits by using a formula based on working 35 years. There are only 10 years needed in order to receive benefits, but 35 years are used for calculations. If you have not worked 35 years, zeros are added to complete the formula. Disability, retirement and survivor benefits, are calculated in the same way. PIA stands for the amount of income you will get for your retirement. PIA is based on the person's work history, only when full retirement has been reached.

Minimum Benefits

Social Security in the 1970s had a minimum benefit amount, but after Supplemental Security benefits were introduced in 1974, there was no longer a need for minimum amounts.

Maximum Benefits

Social Security has a maximum paid into the system. As of 2010, the maximum is $106,800. When a worker pays this amount into Social Security taxes, no additional funds are required. Any worker that has paid the maximum for 35 years will in turn receive the maximum benefits. The maximum amount at the age of 66 is $2,366 per month. If the worker chooses to work until the age of 70, his or her benefits will increase by 30 percent.