A University of Alabama Law School Clinical Program funded in part by West Alabama Regional Commission

5. Who benefits

One reason for the program’s success is that everyone who works long enough to qualify receives benefits. The greater the lifetime earnings, the greater the Social Security benefit, up to a maximum monthly benefit in 2009 of $ 2,323 ( before any increase from delaying benefits.) On the other hand, the process is weighted so that low-income workers receive a benefit that is higher in proportion to their contributions.

Social Security also pays disability and survivor benefits. For the average wage-earner this aspect of Social Security is equivalent to about a $300,000+ life insurance policy and a $250,000 disability policy. It can also provide benefits to the disabled person and a family. The SSA estimates that a 20-year-old today has a 3 in 10 chance of being disabled before retirement.

Social Security is now sending periodic earnings statements to participants so that if there are mistakes in earnings they can be corrected promptly. These statements provide estimates of disability and retirement earnings under different scenarios (estimated benefits if you were disabled today, if you retired at 62, at 66, etc.).

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