What OASDI Is and Who It Covers

Old Age, Survivors, and Disability Insurance (OASDI) is the official name for the Social Security program. It is a federal insurance system funded by payroll taxes — money taken from your paychecks and your employer's contributions. When you or a family member becomes unable to work due to age or disability, or when a worker dies, OASDI may provide monthly payments to you or your dependents.

OASDI has three main parts. The first pays retirement benefits to workers age 62 and older. The second pays benefits to the family members — spouses, children, and parents — of a worker who has died. The third pays benefits to workers under full retirement age who have a medical condition expected to last at least 12 months or result in death. This third part is Social Security Disability Insurance, or SSDI.

You do not choose which part you receive. Your situation determines it. If you are over full retirement age and have worked long enough, you receive retirement benefits. If a family member who worked has died and you are their spouse, child, or parent, you may receive survivor benefits. If you are under full retirement age and have a condition that prevents substantial work, you may receive disability benefits.

Key Takeaways

  • OASDI is funded by payroll taxes and covers retirement, disability, and survivor benefits — all three are part of the same Social Security system.
  • To receive any OASDI benefit, the worker (either you or a deceased family member) must have paid Social Security taxes for a minimum number of years, usually 10 years of work.
  • Spouse and family members can receive benefits based on a worker's record even if that worker has not yet claimed their own benefits.
  • The amount you receive depends on the worker's earnings history, not on your own financial need or current income.
  • You must report changes in your situation — marriage, divorce, work income, or a child turning 19 — because they affect your benefit amount or whether you continue to receive payments.

How Work Credits and Insured Status Determine may be able to access

To receive any OASDI benefit, a worker must have earned enough work credits by paying Social Security taxes. In 2024, you earn one credit for every $1,730 in wages or self-employment income, up to a maximum of four credits per year. Most people need 40 credits total — roughly 10 years of work — to be considered "insured" for retirement or disability benefits.

Younger workers may need fewer credits to be insured for disability or survivor benefits. A worker who becomes disabled at age 24 might need only 12 credits (three years of work). A worker who dies at age 30 might need only 12 credits for their family to receive survivor benefits. The exact number depends on your age when the event occurs.

You can check your work credits and earnings history by creating an account on ssa.gov and viewing your Social Security Statement. This statement shows the credits you have earned each year and estimates what your benefits might be at different ages. If you spot an error — a year of work that was not recorded, or wages that were recorded incorrectly — you can report it to Social Security. You have three years, three months, and 15 days from the end of the year the wages were earned to correct them.

Retirement Benefits and When You Can Claim

You can claim Social Security retirement benefits as early as age 62, but the amount you receive will be permanently reduced. Your full retirement age — the age at which you receive your full benefit amount — depends on your birth year. For people born in 1943 or later, full retirement age ranges from 66 to 67. If you wait until age 70 to claim, your benefit increases by about 8 percent per year beyond your full retirement age.

The decision of when to claim is a trade-off between receiving payments sooner at a lower amount or waiting longer for a higher amount. If you claim at 62 and live to 80, you will have received more total money than if you waited until 70. If you live past 80, waiting until 70 will have paid more over your lifetime. There is no single "right" answer — it depends on your health, family history, and financial situation.

You do not have to be retired to claim benefits, but if you claim before full retirement age and continue to work, your benefits will be reduced. In 2024, Social Security reduces your benefit by $1 for every $2 you earn above $23,400 per year. Once you reach full retirement age, there is no earnings limit — you can work and receive your full benefit.

Spouse and Family Benefits Based on a Worker's Record

A spouse, ex-spouse, child, or parent may receive benefits based on a worker's Social Security record. These are called auxiliary benefits. The worker does not have to be retired or disabled — they only need to have earned enough work credits. In some cases, family members can claim even if the worker has not yet claimed their own benefits.

A current spouse can receive up to 50 percent of the worker's full retirement benefit amount if they are at least 62 years old, or at any age if they are caring for a child under 16. An ex-spouse can receive the same amount if the marriage lasted at least 10 years, you are both at least 62, and you have been divorced for at least two years (or longer if the ex-spouse is younger than 62). The worker's own benefit is not reduced when a spouse or ex-spouse claims on their record.

Unmarried children under 19 (or 19 if still in high school full-time) can receive up to 50 percent of the worker's benefit. A child age 19 or older can receive benefits if they became disabled before age 22 and remain disabled. A parent age 62 or older can receive benefits if the worker was their child and was providing at least half their support at the time of death or disability.

The total amount paid to all family members on one worker's record cannot exceed 150 to 180 percent of that worker's benefit amount. If multiple family members claim, Social Security divides the family maximum among them, which may reduce each person's individual share.

Survivor Benefits When a Worker Dies

When a worker who has earned enough credits dies, their family members may receive monthly survivor benefits. A widow or widower can receive benefits at age 60, or at any age if caring for a child under 16. An ex-spouse can receive the same benefits if the marriage lasted at least 10 years. Children under 19 (or 19 if in high school) receive benefits, as do children age 19 or older who became disabled before age 22.

A parent age 62 or older can receive survivor benefits if the deceased worker was their child and was providing at least half their financial support. The amount each family member receives is a percentage of what the worker's retirement benefit would have been. A widow or widower at full retirement age receives 100 percent; at age 60, about 71 percent. Each child typically receives 75 percent of the worker's benefit.

Survivor benefits end when a child turns 19 (or 20 if still in high school), when a widow or widower remarries before age 60, or when a disabled adult child's disability ends. A one-time payment of $255 is made to a surviving spouse or dependent child when the worker dies; this payment is separate from monthly benefits.

Disability Benefits Under SSDI

Social Security Disability Insurance (SSDI) pays monthly benefits to workers under full retirement age who have a medical condition that prevents substantial work. "Substantial work" means earning more than a set amount per month — in 2024, $1,550 for non-blind workers and $2,590 for blind workers. Your condition must be expected to last at least 12 months or result in death.

To receive SSDI, you must have earned enough work credits. The number required depends on your age. Most workers need 40 credits with at least 20 earned in the 10 years before becoming disabled. Younger workers need fewer credits. Once approved, you receive benefits until you reach full retirement age, at which point your SSDI benefit converts to a retirement benefit of the same amount.

Family members can also receive benefits on your SSDI record. A spouse or ex-spouse age 62 or older can receive up to 50 percent of your benefit. A child under 19 (or 19 if in high school) can receive up to 50 percent. These family benefits do not reduce your own payment.

How Your Benefit Amount Is Calculated

Your benefit amount is based on your lifetime earnings record, not on your financial need or current income. Social Security calculates your Primary Insurance Amount (PIA) by taking your 35 highest-earning years, adjusting them for inflation, and explore a formula that replaces a higher percentage of lower earnings than higher earnings. This formula is progressive — it provides a larger replacement rate for workers with lower lifetime earnings.

If you have fewer than 35 years of earnings, Social Security counts zero-earning years, which lowers your average and your benefit. If you worked part-time or took time out of the workforce, those years count as zero unless you have more than 35 years of work history. Once you reach age 60, no additional earnings can increase your benefit amount.

Your benefit is adjusted each year for cost-of-living increases (COLA). In 2024, benefits increased by 3.2 percent. The exact percentage varies year to year based on inflation. If you claim before full retirement age, your benefit is reduced by a percentage that depends on how many months early you claim. If you delay claiming past full retirement age, your benefit increases by about 8 percent per year until age 70.

Reporting Changes and Managing Your Account

You must report certain changes to Social Security because they affect your benefits. If you marry, divorce, or your marital status changes, you must report it. If a child in your household turns 19 or leaves school, you must report it. If you return to work or your work income changes, you must report it — especially if you claimed before full retirement age, because your benefit may be reduced if you earn above the annual limit.

You can report changes by calling Social Security at 1-800-772-1213, visiting your local Social Security office, or logging into your account at ssa.gov. Keep records of any changes you report, including the date and the name of the person you spoke with. If your benefits are affected and you disagree with the change, you have the right to appeal.

Check your Social Security Statement regularly — at least once a year — to make sure your earnings record is accurate and your benefit estimate is correct. If you notice an error, report it when ready. The longer you wait, the harder it becomes to correct.

Frequently Asked Questions

Can I receive benefits if I did not work long enough to earn 40 credits?

No, you need at least 40 credits to receive retirement or full disability benefits. However, if you are younger and become disabled, you may need fewer credits — as few as 12 credits if you are in your early 20s. If you are a spouse or child of a worker who has earned enough credits, you may receive benefits based on their record even if you have not worked.

What happens to my benefits if I go back to work?

If you claimed before full retirement age, your benefits will be reduced if you earn more than the annual limit — $23,400 in 2024. Social Security reduces your benefit by $1 for every $2 you earn above that amount. Once you reach full retirement age, there is no earnings limit. If you are receiving disability benefits and return to work, you have a trial work period of nine months during which you can earn any amount without losing benefits.

Can an ex-spouse receive benefits on my record without my permission?

Yes, an ex-spouse can receive benefits on your record if you were married for at least 10 years, both of you are at least 62, and you have been divorced for at least two years. You do not have to agree to it or even know about it. Your own benefit is not reduced when an ex-spouse claims on your record.

What is the difference between OASDI and SSI?

OASDI is an insurance program funded by payroll taxes and based on work history. SSI (Supplemental Security Income) is a needs-based program funded by general tax revenue and available to people with low income and resources, regardless of work history. You may receive both, but they are separate programs with different rules.

How do I know if my family members are may be able to access for benefits on my record?

Contact Social Security at 1-800-772-1213 or visit ssa.gov to discuss your situation. Social Security can tell you who may be may be able to access based on your work record and help you understand the amounts they might receive. Family members do not have to be U.S. citizens to receive benefits, but they must meet other requirements.