The Social Security special minimum benefit provides a primary insurance amount (PIA) to low-earning workers. The lowest minimum PIA, with at least 11 years of work, is $49.40 per month in 2023 and $50.90 in 2024. The full minimum PIA, which requires at least 30 years of work, is $1,033.50 per month in 2023 and $1,066.50 in 2024.
Unlike regular Social Security, which pays out retirement benefits according to your past income, special minimum benefits are calculated based on how many years you’ve worked.
The Social Security special minimum benefit is a program that was enacted in 1972 in order to provide benefits to those who earn a low wage.
But the monthly amount you’ll actually receive if you qualify for this benefit varies based on when you file for Social Security retirement benefits:
You'll receive less if you file early. You can file for benefits starting at age 62, but the amount will be reduced if you file before full retirement age, which is 67 for those born after 1960 (and a little lower for those born before 1960).
You'll receive 100% at full retirement age or later. Unlike with regular retirement benefits, you won't receive a higher payout if you file past full retirement age, the Social Security Administration confirms.
Who receives the special minimum Social Security benefit?
To qualify for the special minimum Social Security benefit, you need to have worked at least 11 years while earning at least a certain amount of taxable income. In 2023, that minimum income threshold is$17,820; it is $18,765 in 2024.
The benefit caps out at 30 years of work, at which time you’ll qualify for the full special minimum as the primary insurance amount, which is $1,033.50 per month in 2023 and $1,066.50 in 2024. The total monthly benefit will be reduced if you file early. You won't receive a larger benefit if you file past full retirement age.
Note that you’ll receive the higher of two benefits when you retire: either the special minimum benefit or regular Social Security retirement benefits. You can’t receive both payments at the same time.
As wages have increased, the number of people taking advantage of the special minimum benefit has dwindled over the years. In the early 1990s, about 200,000 people took advantage of this program, according to the Social Security Administration. In 2022, that number dropped below 23,000.
If you qualify for the special minimum, there are two main factors that affect your monthly payout:
How long you worked. The number of years that you work directly affects the income that you’ll receive. You’re eligible for the prorated special minimum benefit after just 11 years of work, but sticking it out for a full 30 years will net you the highest monthly payments possible.
When you file for benefits. The monthly payouts for your retirement benefits will be lower if you file as soon as you’re eligible at age 62.The full retirement age for those born after 1960 is 67, though it’s a little lower if you were born earlier.
If you choose to retire at 62 and start receiving your benefits, you’ll be getting about 30% less than if you waited until you were 67.
Though filing early can result in a lower monthly payout, doing so could be worth it in some situations, such as if you’re struggling with expenses and need the extra money.
Social Security's special minimum benefit pays at least $49.40 per month in 2023 and $50.90 in 2024. Social Security's special minimum benefit tops out at $1,033.50 per month in 2023 and $1,066.50 in 2024. You'll receive 100% of the benefit if you file at full retirement age or later.
DEFINITION: The special minimum benefit is a special minimum primary insurance amount ( PIA ) enacted in 1972 to provide adequate benefits to long-term low earners.
Your maximum benefit if you file at age 62 – the youngest possible age – is $2,710 per month. Your maximum benefit if you file at full retirement age – between 66 and 67 – is $3,822 per month. Your maximum benefit if you file at age 70 – the age when extra benefits stop accruing – is $4,873 per month.
You must earn at least 40 Social Security credits to be eligible for Social Security benefits. You earn credits when you work and pay Social Security taxes. The number of credits does not affect the amount of benefits you receive.
The higher your AIME, the higher your PIA and income will be. The maximum amount of your earnings that are counted each year towards your AIME is called the “Social Security Wage Base” (SSWB). It increases every year, and for 2024, it equals $168,600.
The minimum benefit starts at $49.40 per month in 2023 and $50.90 in 2024, requiring at least 11 years of work history. The maximum benefit, for those with 30 years of work, increased from $1,033.50 in 2023 to $1,066.50 in 2024.
There is no specific “bonus” retirees can collect from the Social Security Administration. For example, you're not eligible to get a $5,000 bonus check on top of your regular benefits just because you worked in a specific career. Social Security doesn't randomly award money to people.
Although many of the programs base benefit amounts and eligibility to work history, there are some instances where a person who has never worked can collect benefits. One program that provides benefits to people, not based on their work history, is Supplemental Security Income (SSI).
Learn more about credits at www.ssa.gov/planners/credits.html. Although you need at least 10 years of work (40 credits) to qualify for Social Security retirement benefits, we base the amount of your benefit on your highest 35 years of earnings.
The full retirement age is 66 if you were born from 1943 to 1954. The full retirement age increases gradually if you were born from 1955 to 1960 until it reaches 67. For anyone born 1960 or later, full retirement benefits are payable at age 67.
So, if you've only worked 20 years, which is 10 more than the minimum required to collect Social Security, the Social Security Administration will add your salaries from those 20 years and then divide by 35.
If you've worked and paid taxes into the Social Security system for at least 10 years and have earned a minimum of 40 work credits, you can collect your own benefits as early as age 62.
The basic Social Security benefit is called the primary insurance amount (PIA). Typically the PIA is a function of average indexed monthly earnings (AIME). We determine the PIA by applying a PIA formula to AIME.
The "Primary Insurance Amount" (PIA) is the benefit (before rounding down to next lower whole dollar) a person would receive if they elected to begin receiving retirement benefits at their normal retirement age. At this age, the benefit is neither reduced for early retirement nor increased for delayed retirement.
The full minimum PIA, which requires at least 30 years of work, is $1,033.50 per month in 2023 and $1,066.50 in 2024. Unlike regular Social Security, which pays out retirement benefits according to your past income, special minimum benefits are calculated based on how many years you've worked.
The special rule lets us pay a full Social Security benefit for any whole month we consider you retired, regardless of your yearly earnings. If you receive survivors benefits, we use your full retirement age, for retirement benefits when applying the annual earnings test (AET) for retirement or survivors benefits.
Thus, while SSI alone is not enough to lift someone living independently above the poverty line, it reduces hardship and lessens the need for support from family members. But in 2016, roughly half of all beneficiaries had incomes below the federal poverty line even with their SSI benefits.
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