The meaning of Social Security is often misunderstood, and it’s important to understand the basics in order to maximize your benefits. As with Social Security retirement benefits, Social Security disability benefits are available to those who meet Social Security’s definition of a disability and your work history. The Social Security Administration (SSA) administers two disability programs: Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI).
The beauty of Social Security is that it's also inflation-adjusted, meaning you'll get an annual bump depending on how prices in the economy change. Eligible couples for SSI and essential persons, meaning someone who lives with a person receiving SSI and provides necessary care, will also be able to receive benefits.
The Social Security Administration (SSA) is also introducing Secure 2.0, a new program that will require employers to provide retirement savings plans. The appropriation won't allow the Social Security Administration to purchase the necessary software to begin, Secure 2.0 requires employers already offering defined contribution plans to automatically enroll workers in their plans.
The Secure 2.0 program is also intended to help people who don't have access to an employer-sponsored retirement plan. That means some retired workers will get a bigger tax bill in 2024. tax liability depends on filing status and combined income, which is defined as the total of adjusted gross income, nontaxable interest, and half of Social Security benefits.
With the growing number of Americans reliant on Social Security, there is increasing pressure to reform the system. “Amid concerns about Social Security, the disappearance of traditional defined benefit pensions, and intensifying expectations that workers should manage their own retirement savings,” the government has implemented a number of changes to the program in recent years.
In addition to Social Security retirement and disability benefits, the SSA also administers Supplemental Security Income (SSI). SSI benefits are provided to Social Security recipients whose income and resources do not meet the requirements to qualify for benefits, as well as to those who are not eligible for Social Security benefits. Those who are eligible to receive SSI benefits may also qualify to open an ABLE account if you meet the SSA's disability definitions and receive SSDI or SSI benefits.
When it comes to Social Security, it's important to remember that the benefits don't come out of thin air—it takes not only money but also time to make sure Social Security is there for you when you need it. Workers should also be aware that some jobs may not qualify for Social Security benefits, such as those that do not meet Social Security definition of disability.
