What is OASDI?

OASDI stands for Old Age, Survivors, and Disability Insurance, commonly known as Social Security in the United States. It’s a social insurance program funded through payroll taxes. The taxes are used to provide benefits to retired workers, people with disabilities, and families of deceased workers. OASDI is administered by the Social Security Administration and is one of the most important forms of income to Americans.

Who Is Eligible For OASDI Benefits?

In order to be eligible for OASDI benefits, you must meet certain criteria. First, you must have paid into the Social Security system through payroll taxes while you were working. This means you must have worked and paid taxes for at least 10 years, or 40 calendar quarters. Your income must also have met certain thresholds. For example, in 2021 you must have earned at least $14,160 in order to qualify.

In addition to being employed, you must also be a U.S. citizen or a qualified noncitizen. Lastly, you must also meet the age criteria for retirement benefits. For retirement benefits, you must be at least 62 years old and for disability benefits, you must be at least 18 years old.

What Are Some Common OASDI Benefits?

One of the most common OASDI benefits is retirement benefits. These benefits are paid to workers who have reached the age of eligibility, either 62 or 65 depending on when they were born. The amount you will receive is based on the amount of earnings you had throughout your working lifetime. Generally, the more money you made over the years, the more you will receive in Social Security benefits.

In addition to retirement benefits, there are also disability benefits available through the OASDI program. These benefits are provided to individuals who become disabled and are unable to work. To qualify for disability benefits, applicants must have a physical or mental impairment that prevents them from performing substantial gainful activity and is expected to last at least a year or result in death.

Lastly, OASDI also provides survivor benefits. These benefits are paid out to the families of individuals who have died. These benefits are paid to surviving spouses, children, and parents who are financially dependent on the deceased worker. The amount received is based on the deceased worker’s lifetime earnings and the number of family members who qualify for benefits.

In conclusion, OASDI is an important social insurance program in the United States. It provides benefits to retired workers, people with disabilities, and families of deceased workers. In order to be eligible for benefits, you must meet certain criteria including age, employment, and income requirements. Furthermore, OASDI provides retirement, disability, and survivor benefits. These benefits can be an important source of income for many individuals and families.