What Is Retirement, Survivors, and Disability Insurance?

Retirement, Survivors, and Disability Insurance (RSDI) is a fundamental component of the Social Security program in the United States. It offers financial safeguards to workers and their families, extending protection across retirement, the death of a worker, or the onset of a severe disability. Social Security has evolved into a foundational element of the nation’s social safety net.

Eligibility for these benefits hinges on “work credits.” Individuals earn these credits through covered employment and the payment of Social Security taxes. The number of credits earned dictates eligibility for various benefits, though it does not directly influence the benefit amount received.

Retirement Insurance Benefits

Retirement Insurance provides a consistent income stream to eligible workers once they reach retirement age. This financial support replaces a portion of lost earnings in later life, helping ensure financial security for millions of retired Americans.

To qualify for retirement benefits, individuals generally need 40 work credits, which typically equates to 10 years of work. Benefits can be claimed at different ages, impacting the monthly payment amount. Early retirement benefits are available as early as age 62, but claiming at this age results in a permanent reduction. Full Retirement Age (FRA), the age for 100% of their Primary Insurance Amount (PIA), varies based on birth year, ranging between 66 and 67. For those born in 1960 or later, the FRA is 67.

Delaying benefits past Full Retirement Age, up to age 70, can lead to increased monthly payments through delayed retirement credits. These credits typically add 8% per year for those born in 1943 or later. The benefit amount is primarily determined by a worker’s Average Indexed Monthly Earnings (AIME), which reflects their lifetime earnings. The Social Security Administration calculates AIME using the 35 highest-earning years, indexed for changes in general wage levels. This AIME then translates into the PIA, the basic benefit amount before any adjustments.

Certain family members may also be eligible for benefits based on the retired worker’s earnings record. These include spouses, divorced spouses, and dependent unmarried children under age 18, or up to age 19 if still attending high school.

Survivors Insurance Benefits

Survivors Insurance provides financial assistance to eligible family members of a deceased worker. This offers economic stability and helps alleviate the financial burden from the loss of a primary income earner.

For family members to qualify, the deceased worker must have earned sufficient work credits. This often means the worker was “fully insured,” requiring 40 work credits, similar to retirement benefits. Younger workers may need fewer credits if they die at an earlier age, falling under “currently insured” status, which requires 6 credits in the last 3 years before death.

Eligible family members include a surviving spouse, particularly if caring for the deceased’s child under age 16 or disabled. Divorced spouses may also qualify under specific conditions, such as the marriage lasting at least 10 years. Unmarried children can receive benefits if they are under 18, or 19 if still in high school, or if they were disabled before age 22. Dependent parents aged 62 or older may also be eligible if they relied on the deceased for at least half of their support.

Survivors’ benefits are based on the deceased worker’s earnings record and Primary Insurance Amount (PIA). The benefit typically represents a percentage of the deceased worker’s PIA, varying based on the survivor’s relationship. For instance, a surviving spouse at full retirement age or older may receive 100% of the deceased worker’s PIA, while children typically receive 75%. A one-time lump-sum death payment of $255 may be available to an eligible surviving spouse or child.

Disability Insurance Benefits

Disability Insurance provides income to workers unable to engage in substantial gainful activity due to a severe medical condition. This benefit replaces earnings for individuals whose disability prevents them from working. It is designed for long-term or permanent incapacitation.

Social Security’s definition of disability requires a physical or mental impairment that prevents an individual from performing any substantial work. The condition must be medically determinable and expected to last for at least 12 months or result in death. It does not cover partial or short-term disabilities.

Eligibility depends on the worker’s age at disability onset and accumulated work credits. For example, a worker under age 24 typically needs 6 credits earned in the 3 years before becoming disabled. Individuals aged 24 to 31 generally need credits for half the time between age 21 and disability onset. Most workers aged 31 or older need at least 20 credits earned in the 10 years immediately preceding their disability.

The application process requires medical evidence, including diagnoses, treatment records, and prognoses. Claims may proceed through stages of review, including reconsideration and hearings. There is a mandatory five-month waiting period after disability onset before benefits can commence. Certain family members may also be eligible for benefits based on the disabled worker’s earnings record.

Funding and Administration

The Retirement, Survivors, and Disability Insurance program is primarily funded through dedicated payroll taxes, known as Federal Insurance Contributions Act (FICA) taxes for employees and employers, and Self-Employment Contributions Act (SECA) taxes for self-employed individuals. For employees, the Social Security portion of FICA tax is 6.2% of wages, with an equal 6.2% paid by the employer, totaling 12.4%. These taxes apply up to an annually adjusted maximum earnings limit, which was $176,100 in 2025.

Self-employed individuals pay both the employer and employee portions, resulting in a 12.4% Social Security tax on their net earnings up to the annual maximum. A portion of these taxes is specifically allocated to two distinct trust funds: the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund. These trust funds serve as accounts where Social Security taxes are deposited and from which benefits are paid.

The system largely operates on a “pay-as-you-go” basis, meaning that contributions from current workers primarily finance benefits paid to current retirees and other beneficiaries. The Social Security Administration (SSA) is the federal agency responsible for overseeing the RSDI program. Its responsibilities include collecting payroll taxes, maintaining detailed earnings records for all covered workers, processing applications for benefits, and issuing monthly payments to eligible individuals and their families. The program’s financial health is continuously monitored to ensure its long-term solvency.