Today, more than 156 million people work and pay Social Security taxes. More than 47 million people receive monthly Social Security benefits. These taxes are used to pay benefits to workers who already have retired; people who are disabled; survivors of workers who have died; and dependents of qualified individuals.

How you become eligible to Social Security?

As a person works and pay taxes, he or she earns Social Security credits. These credits depend upon the amount of an individual’s income. Every year, the amount of income needed to earn a credit increase to keep up with the wages. For 2008, a person shall receive one credit per $1,050 earnings. A worker can get up to a maximum of four credits a year.

Most people need forty credits equivalent to 10 years of working to qualify for benefits. Younger people need less credit for their family to be eligible.

Retirement Benefits

Social Security retirement benefits can be received as early as 62. However, few people understand the complicated rules that apply to people who continue to work after retirement age, or decide to retire before their full retirement age. Here are the following rules:

• If you opt to retire in your full retirement age, you shall be given your full retirement benefits
• If you retire prior to attaining full retirement age, you will obtain smaller benefits for the remainder of your life
• If you work further than your full retirement age, you will acquire your full retirement benefits regardless of how much income you earn
• If you carry on with work and choose not to withdraw your retirement benefits until you become 70, you shall get a hold of higher benefits when you retire
• If you decide not to collect your retirement benefits earlier than your reach full retirement age, you must make sure to apply for Medicare when you get to age 65.

Disability Benefits

There are five major types of Social Security Disability benefits.

1. Disability Insurance Benefits
2. Disabled Widow’s and Widower’s Benefits
3. Disabled Adult Child Benefits
4. Supplemental Security Income (SSI) Benefits
5. SSI Child’s Disability Benefits

Rules on disability benefits are followed strictly. They have a stern definition of disability. Their rules are different from those of other private plans or government agencies.

Social Security Act defines disability as "a person’s disability to engage in any "Substantial Gainful Activity" (SGA) by reason of any medically determinable physical or mental impairment which can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months."

A person may be considered disabled from another program or agency but it doesn’t follow that he or she could also be classified as disabled by the Social Security. Furthermore, having a statement from a doctor that says a person is disabled does not automatically mean that he/she can be eligible to Social Security disability benefits.

It is possible that problems arise in the process of claiming for these benefits. Social Security does not easily provide welfare but considers every aspect of the eligibility of the claim, such as, the employment record, prior contributions to Social Security, medical records, etc.

One may even have to apply several times before getting a positive approval of their claims. In the event that this happens, a Social Security benefit attorney may help you.