10 Important Social Security Questions Answered
vorDa / Getty Images
vorDa / Getty Images

Although Social Security was never meant to fully fund retirement for Americans, for about half of older adults, it still comprises more than 50% of their income. That's why it's so important to have an understanding of how Social Security operates.

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Although certain details about Social Security can get complicated, there are some basic principles that you should understand to ensure that you maximize your potential benefits. Here are the answers to 10 of the most commonly asked questions relating to Social Security.

NoDerog / Getty Images/iStockphoto
NoDerog / Getty Images/iStockphoto

What Is the Average Social Security Benefit?

Although Social Security provides important retirement benefits to many Americans, you shouldn't expect it to fund all or even most of your needs as you get older. For 2022, the average monthly Social Security retirement benefit is just $1,657, or $19,884 per year. That equates to less than $10/hour for a full work year of 2,000 hours. Although some with an extremely low cost of living may be able to survive on that, for most Americans, it would be nearly impossible. Knowing this early in life may prompt more Americans to begin their own retirement savings programs to supplement their anticipated Social Security earnings.

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mphillips007 / Getty Images/iStockphoto
mphillips007 / Getty Images/iStockphoto

What Is the Maximum Social Security Benefit?

Even the maximum Social Security benefit isn't likely to give many Americans a comfortable retirement all on its own. For 2022, this maximum benefit amount is $4,194, or $50,328. While this is a sizable amount, it requires an extremely high level of earnings throughout your work career to qualify, meaning it would translate to a significant pay cut by the time you retire if used on its own. You'll also have to wait until age 70 to claim Social Security in order to be eligible for the maximum benefit. So, similar to the average Social Security benefit, the maximum benefit isn't likely going to be enough to fund the lifestyle of those who qualify for it.

Vadym Pastukh / iStock.com
Vadym Pastukh / iStock.com

How Do I Qualify for Social Security?

You can qualify for Social Security by earning 40 "quarters of coverage," which essentially translates to 10 years of working and paying into the Social Security system. For 2022, you can qualify for a quarter of coverage with $1,510 in taxable earnings. Technically, you can therefore qualify for four quarters of coverage each year after earning just $6,040. However, you can't earn more than four quarters of coverage in any one year, so you'll still have to earn over a span of 10 years to qualify for Social Security.


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