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      This book makes a few assumptions about you, the reader:

      Icons Used in This Book

      Throughout this book, I use the following icons to draw your attention to certain kinds of information.

      

The Tip icon draws your attention to information that can save you time and money, or just make your life easier as you navigate the Social Security system.

      

You don’t have to commit this book to memory, but when you see the Remember icon, you want to pay attention because it flags information that’s so important, it’s worth remembering.

      

The Warning icon signals important information that helps you avoid potentially costly or time-consuming pitfalls.

      

I use the Technical Stuff icon when I veer into highly technical information – information that adds insight but isn’t critical to your understanding of the topic at hand.

      Beyond the Book

      In addition to the material in the print or e-book you’re reading right now, this book comes with some bonus information on the web that you can access from anywhere. If you want some answers quickly on some of the most basic parts of Social Security, you can go to the Social Security For Dummies Cheat Sheet. To view this book’s Cheat Sheet, simply go to www.dummies.com and enter “Social Security For Dummies Cheat Sheet” in the Search box.

      Where to Go from Here

      You can skip around this book any way you want. If you’re the sort who reads every word of every book, you can start with Chapter 1 and read all the way through to the end. If you’re looking for information on a particular topic, use the table of contents and index to find what you need. For example, if you’re not sure when you should start collecting Social Security retirement benefits, turn to Chapter 3. If you’re disabled and need information on Social Security Disability Insurance, turn to Chapter 11. Or if you want to know what the future may hold for Social Security, turn to Chapter 17. No matter where you dive in, this book has you covered.

      You’ve earned your Social Security benefits. Knowing what you have is always a good idea, and this book provides the information you need.

      Part 1

      Getting Started with Social Security

      IN THIS PART …

Chapter 1

      What Social Security Is and Why You Need It

      IN THIS CHAPTER

      Social Security is the foundation of long-term financial support for almost every American. If you’re like most people, you’ll depend on Social Security to help you survive in your later years (if not sooner). In fact, its protections are becoming even more important as an answer to growing insecurity in old age.

      Look around you. If you’re in the workforce, you know that good jobs are hard to come by. If you’re an older worker who loses a job, you may also know it can take a long time to get a new one. Have you been able to set aside money for the future? Saving is essential, but many Americans save little, if anything. Maybe you contribute to a 401(k) at work, if your employer offers one, but who knows how much your investments will be worth next week or next month, let alone many years in the future?

      Some of the people who read this book will live to be 100. Maybe you’re one of them. Many people will make it into their 80s and even their 90s. Those years cost money. In a future of risks and unknowns, Social Security is one thing you can count on. Your benefit is guaranteed by law and protected against inflation. But that doesn’t mean it takes care of itself or that you should be a passive participant in Social Security. You have decisions to make, and you can make them better if you have some working knowledge of the benefits you’ve earned. You may also have actions to perform, such as informing the Social Security Administration (SSA) about things that could affect your benefits.

      This chapter provides an overview of Social Security and a broad-brush description of benefits. Here, I explain why Social Security was created and why those reasons are highly relevant to Americans today.

      Understanding What Social Security Means for You

      So, what is this U.S. institution that – sooner or later – plays a role in virtually all our lives?

      You can think of Social Security as a set of protections against things that threaten your ability to survive financially – things like getting older and retiring, or having a serious accident or illness that leaves you unable to work. When such things happen, family members who depend on you may not be able to pay for the basic necessities of life.

      That’s why Social Security offers a range of benefits. These protections can provide crucial financial security for workers, their immediate family members, and even divorced spouses. For example, Social Security benefits may go to

      ❯❯ People who retire and their dependents, typically spouses, but potentially children and grandchildren

      ❯❯ People who are disabled and the immediate family members who depend on them

      ❯❯ Spouses, children, and even the parents of breadwinners who die

      

Social Security’s guaranteed monthly payments, set by legal formulas, stand out in a world of vanishing pensions, risky financial markets, rising healthcare costs, and increasing longevity. Although the program faces a potential financial shortfall in the future, its most fundamental features enjoy broad public support.

      In the following sections, I look at specific groups of people who benefit from Social Security.

      More than 43 million retirees and their spouses get retirement benefits every month. These benefits help millions of people stand on their own two feet instead of relying on their kids or charity or scrambling every month to pay the bills. For about one-third of

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