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 benefit in 2004 of $1,825 (unless increased by delaying benefits until after FRA).

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 $230,000 disability policy. It can provide benefits to the disabled person and a family.

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 65, etc.).

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