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Work Credits and Eligibility for Social Security Disability

Social Security Disability Insurance benefits work much the same way as Social Security retirement benefits, in that if you work, you pay a substantial amount of money as Social Security tax. By paying Social Security tax, you earn "work credits", by which you become legally entitled to receive benefits; however, the number of credits required differs based on whether one is applying for retirement benefits or disability benefits. A worker can earn up to four "work credits" per year. The exact number depends on how much money you make; in 2009, for example, you would receive one work credit for every $1090 you make, up to a maximum of four credits for the whole year. If you have earned 40 "work credits", then when you reach retirement age you will be eligible for retirement benefits.

For the "work credits" to count towards disability benefits, however, they generally must have been earned within the last 10 years. The Social Security Administration website explains how many work credits you need.

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Recent Content

Four Factors that Determine Your Social Security Retirement Benefit

Your Social Security retirement benefit largely depends on the following four factors :

* Your work history => Longer yields a higher benefit

* Your earnings history => Higher earnings yields higher benefit (at decreasing rate)

* Your birth year => Born earlier means higher relative benefit

* Your claiming age => Starting benefits later means higher benefit

What Social Security May Look Like in 2035

Interesting article which looks at how Social Security may fare in the year 2035.

Highlights :

* The worker-to-beneficiary ratio will drop from 2018's 2.8 to 2.2-to-1.

* Workers will have to wait longer to receive "full" benefits

* Social Security's "trust fund" will be exhausted

* Substantial benefit cuts may be needed

* Payroll taxes will be critical to pay for benefits

* Social Security benefits will continue to decline due to inflation

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Not affiliated with the US Social Security Administration