Minimum Social Security Benefits

There are no minimum benefits for Social Security as of 2010.money money money image by Arman Zhenikeyev from Fotolia.com

According to The Social Security and Disability Resource Center, there is no minimum Social Security benefit amount, since it is based upon a series of factors, including the length of time that you worked, how much money you contributed and when you decide to start receiving benefits.

History

In 1935, President Roosevelt signed the Social Security Act, designed to provide for workers in commerce and industry when they came of retirement age. In 1937, the Federal Insurance Contribution Act was signed into effect. It taxed workers so that the money collected could be placed into the Social Security system. At that time, payroll taxes were 2 percent of a worker's total wages.

As time passed, coverage under the Social Security Act expanded to workers who were outside of commerce and industry and more benefits were added. Disability insurance was formed for workers who suffered a debilitating injury and would be unable to work. Payroll taxes were 3 percent at that time.

According to Social Security Online, anyone who qualifies for benefits may start collecting monthly payments as early as age 62. You do not have to collect at 62, however. It is only when you reach 70 years of age that you must start receiving your Social Security benefits. The longer that you wait to receive your benefits, the larger your monthly check will be. Every year, you should receive a statement that contains a chart showing how much money has been put into the system on your behalf and what the monthly payment amount will be, based upon when you will start receiving benefits.

Title XVIII was added to the Social Security Act in March of 1965. This became known as Medicare and it established hospital insurance for the elderly, as well as some supplemental medical insurance. The minimum age to start collecting benefits for those eligible is 65.

According to CBS News, the long-term prospects for keeping the Social Security system financially viable are slim. As of 2010, Social Security is paying out more in benefits than it collected in payroll taxes.