How Your Benefits Are Calculated Under Social Security Law
Social security benefits are payments to retired adults qualified to receive the amount. The benefits may also be issued to people with disabilities, or in the case where the benefactor passes on, their spouse, children, or other relatives may receive the benefits. People often wonder how the benefits are calculated. The video How Social Security Disability Benefits Are Calculated breaks it down simply. It walks the viewers through the basics and how benefactors qualify.
The social security law was based on an initial act signed in 1935 by president Franklin Roosevelt. Since then, there have been many amendments that determine how the benefits are issued. Benefactors contribute to the program during their working years. Benefits are calculated based on an average indexed monthly earning.
As workers pay for the program, they earn credits over the years based on their income. Things like inflation must also be considered when calculating the whole amount. There are different social security benefits, such as spousal benefits, survivor benefits, and special considerations. Things like taxes may also affect the benefits that a person receives. In certain regions, the benefits are taxed. The total amount is often calculated every year, and additional earnings are added to the total.
