Everything You Need to Know About Social Security
According to the Social Security Administration, nearly 68 million Americans receive Social Security benefits each month. That number may seem staggering, but it’s not surprising — especially since Social Security makes up about 30% of income for most people over 65. If you’re nearing retirement or simply thinking about your future, understanding Social Security benefits can be a game-changer for your financial and healthcare plans.
MHIS has assembled this guide to help you navigate Social Security in a way that makes sense for you. And if questions come up? Midwest Health Insurance Solutions, led by Edwin Garcia, is ready to guide you through each step.
Let’s dive in and start planning for a more secure future.
What Are Social Security Benefits?
Social Security benefits are more than just retirement income — they’re a financial safety net that helps people through various stages of life. These benefits fall into four main categories:
Retirement Benefits
The most common form of Social Security, retirement benefits support individuals who’ve worked and paid into the system. Once you reach retirement age, you’ll start receiving monthly payments based on your earnings over the years.
These funds can make all the difference in retirement, covering essentials like:
- Housing
- Groceries
- Healthcare
Disability Benefits
If an illness or injury prevents you from working, Social Security disability benefits can provide financial support. Qualifying for these benefits depends on factors like your:
- Age
- Work history
- The severity of your condition
For many people, disability benefits can be a lifeline during challenging times.
Survivor Benefits
Social Security also provides benefits to family members after the death of a loved one who contributed to the system. These survivor benefits go to the families to maintain stability after a loss.
Medicare
When you’re eligible for Social Security, you’re often eligible for Medicare, too. Medicare helps cover healthcare costs, offering different options like Medicare Advantage or supplemental plans to suit various healthcare needs.
Together with Social Security, these benefits support your financial and health security in retirement.
Social Security Eligibility: Who Qualifies?
Qualifying for Social Security benefits is straightforward once you understand a few basics. For retirement benefits, you generally need to reach age 62 to start, though most people get full benefits between 66 and 67, depending on their birth year.
Work credits play a big role, too — you’ll need around 40 credits, typically earned over about ten years of work, to qualify. Each year, you earn credits based on your income, so even part-time work counts.
If you’re thinking about health insurance options like Medicare Advantage or the ACA (Affordable Care Act), eligibility here can impact your choices. For instance, Medicare kicks in automatically once you reach eligibility through Social Security.
For those under 65 who need coverage, ACA plans are available until Medicare is an option.
The Social Security Application Process: Step-by-Step Guide
Applying for Social Security benefits is easier than you might think, and you’ve got options. The simplest way is online through the Social Security Administration’s website. You can also apply by phone or in person if you prefer a bit more guidance.
No matter which route you choose, you’ll need some essential documents, like your:
- Social Security identification
- Birth certificate
- Recent tax forms
The application itself is straightforward, with sections for:
- Personal details
- Work history
- Bank info if you want direct deposit
To help things go smoothly, make sure to double-check everything before hitting “submit” or handing it over in person. Delays often happen because of missing or incorrect information, so a quick review can save you time.
And remember, it’s always okay to reach out with questions — Midwest Health Insurance Solutions is here to guide you.
Planning for the Future: Maximize Social Security Benefits
Maximizing Social Security benefits comes down to timing. One popular strategy is to delay collecting benefits until age 70, if possible. While you’re eligible to start receiving benefits at 62, every year you wait increases your monthly payment. Over time, that extra income adds up, making it well worth the wait for those who can.
To decide the best time to start, think about your personal situation.
- Your health
- Financial needs
- Retirement income sources
They all play a part. Use the Social Security Administration’s online calculators to get an estimate of your benefits at different ages.
Planning ahead also helps you align Social Security with your Medicare and other healthcare needs.
The first key term is full retirement age (FRA), which varies depending on your birth year. For most, FRA falls between 66 and 67.
If you start receiving benefits before FRA (as early as 62), you’ll get a reduced monthly amount. For example, claiming at 62 may reduce your benefit by about 30%.
On the flip side, delaying benefits past your FRA can mean higher monthly checks thanks to delayed retirement credits. For each year you wait beyond your FRA — up until age 70 — your benefit increases by about 8%.
The Role of Social Security in Healthcare Planning
Social Security benefits and healthcare often go hand in hand, especially when Medicare comes into the picture. Once you’re eligible for Social Security, Medicare enrollment becomes simpler. If you’re receiving Social Security benefits by age 65, you’re automatically enrolled in Medicare Parts A and B.
For those under 65 who rely on individual health insurance, like ACA plans, Social Security benefits can support these costs until Medicare eligibility kicks in. And if you’re transitioning from an ACA plan to Medicare, coordinating this shift with Social Security benefits can save you time and stress.
Here’s where working with an expert like Edwin Garcia can be invaluable. He helps clients make these transitions smoothly, ensuring they’re covered whether they’re on a private health plan or Medicare.
Secure Your Future with Social Security Benefits
Planning for Social Security benefits can feel overwhelming, but with the right help, it doesn’t have to be.
At Midwest Health Insurance Solutions, our bilingual specialist, Edwin Garcia, is here to make it simple. Edwin’s deep knowledge of Social Security and health insurance options, paired with his genuine concern for clients, ensures you’ll find the best fit for your needs and budget.
For our Spanish-speaking friends, imagine working with a specialist who truly understands you and your family’s needs. Reach out to Edwin today or call (402) 972-0820 for a free consultation.
