How Latino Immigrants Can Use the U.S. Social Security System

How Does Social Security Work?

Social Security is a program funded by taxes collected from both employers and employees under the Federal Social Security Contribution (FICA) system.

Social Security is a program funded by taxes collected from both employers and employees under the Federal Social Security Contribution (FICA) system.

Every worker in the United States, including legal immigrants, contributes to this system during their working years, which subsequently entitles them to access benefits based on their contribution history.

Eligibility for Benefits

To be eligible for Social Security benefits, you must accumulate a minimum number of work credits. In general, 40 credits are needed to be eligible for retirement, which is approximately equivalent to 10 years of work. Each year, a worker can earn up to four credits, depending on the amount of their annual earnings.

Calculation of Benefits

Benefits are calculated based on adjusted average earnings over years of work. The Social Security Administration calculates the benefit using the average of indexed wages from the worker's 35 highest-earning years. This method ensures that the benefit value reflects the general increase in wage levels over time.