Social Security Benefits

DEFINITION of 'Social Security Benefits'

The monetary benefits received by retired workers who have paid in to the Social Security system during their working years. Social Security benefits are paid out on a monthly basis to retired workers and their surviving spouses. They are also paid to those who are permanently and totally disabled according to the strict criteria set forth by the Social Security Administration.

BREAKING DOWN 'Social Security Benefits'

Social Security benefits may be taxable depending on the taxpayer's level of income. Single taxpayers who have income above $25,000 per year and married couples filing jointly with more than $32,000 of income may have a portion of their Social Security benefits taxed. Social Security disability payments are usually tax-free.

RELATED TERMS
  1. Old Age, Survivors And Disability ...

    The official name for Social Security in the United States. The ...
  2. Indexed Earnings

    A worker's past wages that have been adjusted for changes in ...
  3. Social Security Number - SSN

    A nine-digit number assigned to citizens, some temporary residents ...
  4. Social Security

    A United States federal program of social insurance and benefits ...
  5. Social Security Administration ...

    A U.S. government agency created in 1935 by President Franklin ...
  6. Disability-Income (DI) Insurance

    An insurance product that provides supplementary income in the ...
Related Articles
  1. Taxes

    Avoid the Social Security Tax Trap

    Government benefits can cost you big money! Know the income thresholds before you file.
  2. Retirement

    10 Common Questions About Social Security

    Find out everything you need to know about this program.
  3. Retirement

    The Purpose of a Social Security Statement

    Learn what information your Social Security benefit statement contains and how you can use the information to more intelligently plan for retirement.
  4. Retirement

    How Much Social Security Will You Get?

    You've been paying in for years - now it's time to find out what the system owes you.
  5. Retirement

    Create Your Own Social Security Fund

    The government's Social Security program may not last forever - be prepared by setting up your own.
  6. Retirement

    Maximize Your Social Security Benefits

    The plan's cost of living adjustments can provide protection against inflation.
  7. Savings

    A Social Security Reality Check

    Recessions and depleted Social Security funds could derail your post-work plans. Find out how to stay on track.
  8. Retirement

    Top 6 Myths About Social Security Benefits

    Misinformation on retirement benefits is common. We'll set the record straight.
  9. Investing

    Retirees: 7 Lessons from 2008 for the Next Crisis

    When the last big market crisis hit, many retirees ran to the sidelines. Next time, there are better ways to manage your portfolio.
  10. Investing Basics

    The Top 4 Income Investments for Retirees in 2016

    These four investment types should mitigate risk in 2016 for retirees seeking income.
RELATED FAQS
  1. What type of asset allocation should I use if I am already retired?

    Among investors, asset allocation is a topic of discussion that receives a great deal of weight during the asset accumulation ... Read Full Answer >>
  2. Is there any way to opt out of paying Social Security?

    Exemptions from the Social Security program exist for a small number of groups. These individuals are not responsible for ... Read Full Answer >>
  3. What are the main differences between Social Security Benefits & Social Security ...

    While the names are very similar and they have similar purposes, there are a few marked differences between Social Security ... Read Full Answer >>
  4. How do I apply for Social Security retirement benefits?

    Applying for Social Security benefits is a fairly simple process. Applications can be submitted either online, over the phone ... Read Full Answer >>
  5. How soon do I need to start my application for Social Security retirement benefits?

    Applications for Social Security benefits can only be processed a maximum of four months before benefits are scheduled to ... Read Full Answer >>
  6. When is it optimal to take my widow's Social Security benefit?

    The optimal time to apply for Social Security benefits as the surviving spouse of a deceased worker depends on several factors, ... Read Full Answer >>
  7. How are Social Security benefits affected by your income?

    Social Security retirement benefits may be affected by a variety of factors, but your earned income is one of the most important. ... Read Full Answer >>
  8. Are Social Security benefits taxable?

    Social security benefits are not taxable according to the Internal Revenue Service, as of 2014. There are certain rules that ... Read Full Answer >>
Hot Definitions
  1. Super Bowl Indicator

    An indicator based on the belief that a Super Bowl win for a team from the old AFL (AFC division) foretells a decline in ...
  2. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  3. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  4. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  5. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
Trading Center