North Carolinians rely on the Social Security system for supplementary income after they retire. As of June 2023, nearly one in five North Carolina residents receive Social Security benefits, with half of North Carolinians over 65 depending upon them for at least 50% of their income.
Social Security benefits change over time. Income modifications, cost-of-living adjustments, Medicare premium changes, and more make occasional alterations necessary. To understand how Social Security works, it’s a good idea for North Carolina citizens to know the most important parts of their benefits program.
Retirement Benefits
Social Security retirement benefits are calculated according to how much a worker pays in Social Security taxes. These payments go toward “credits,” a minimum of which are needed for benefits to kick in. The large majority of current workers (those born after 1929) need 40 credits — equal to about ten years of work — to be eligible.
The earliest age one can start receiving Social Security benefits is 62. However, the longer one waits to begin earning benefits, the higher those benefits will be.
Depending on your year of birth, your full retirement age — the point when you become eligible for the full Social Security benefit — is between 66 and 67. Anyone born after 1960 reaches full retirement age at 67.
If you decide to keep working past full retirement age, the Social Security Administration (SSA) adds another year of earnings to your record, boosting your potential income. This means an annual 8% increase to your benefits until you reach 70 (or whenever you finally stop working after full retirement age).
Supplemental and Disability Benefits
The SSA offers financial aid to seniors and those with disabilities (regardless of age). They come in two programs — Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI).
SSI is basic financial help, the minimum provided to older adults and the disabled with exceptionally low incomes and support resources. SSDI aids disabled persons who have earned credits through their work history (or their family’s).
With SSI, eligible people can start receiving benefits one full month after filing the claim. As of March 2024, the average monthly SSI benefit was about $698, with a maximum of $943 for individuals or $1,415 for couples. These maximums will increase next year.
Those eligible for SSDI benefits begin receiving them six months after the month following when the SSA decides the disability started. At present, the average monthly SSDI benefit is around $1,538, with a maximum of $3,822 for individuals.
Families with someone eligible for SSDI can get a maximum of between 85% to 150% of the disabled person’s benefits.
SSI takers automatically qualify for Medicaid when their benefits start. Those in the SSDI program must go through a 24-month waiting period first, although those with ALS do not have to wait.
Spousal Benefits
If your spouse is at least 62 years old or taking care of a child under 16, they may be eligible to receive a part of your Social Security benefits as long as you’ve already filed for them.
The spousal benefit can be as much as 50% of your full retirement benefit if your spouse takes it at their full retirement age. If they take it before that age, the amount they receive will be less.
You can even leave benefits for your divorced spouse, as long as your marriage lasted at least ten years and they have not remarried.
Survivor Benefits
When a person who’s faithfully paid their Social Security taxes dies, their survivors may be eligible for survivor benefits. Spouses, divorced spouses, children, and dependent parents may qualify.
As with other benefits, the amount of the survivor benefit is calculated according to the deceased’s work history. When survivors wait to take these benefits, those benefits increase more the longer they wait to apply.
Applying for Social Security Benefits in North Carolina
You have a few options for applying for Social Security benefits. The easiest and quickest is to fill out the SSA’s online application. You can also apply on the phone or schedule a visit at 1-800-772-1213. If you’d rather apply in person, the SSA has an online office locator tool that can direct you to one of North Carolina’s many SSA offices.
You’ll need to provide some documentation, including your Social Security number, proof of citizenship, W-2 or self-employment tax returns, and marriage or divorce certificates if necessary.
Good Life: Guidance on Social Security Benefits
Good Life helps our clients navigate the Social Security application process and other financial situations that might arise. To learn more about what we can offer, schedule a discovery call online.