A Lesser-Known Social Security Benefit Can Provide Extra Support For Families

Your Social Security benefit is likely something you've thought of for quite some time. When planning out how you'll fund your retirement, the monthly checks that deposit into your account from the government are a repayment of the many years you spent diligently working — and paying taxes, yourself. As you near retirement age, you'll be able to start drawing benefits early, at 62, if you want, or wait to increase your rate by up to 24%.

For most beneficiaries, a decision on when to start taking benefits and when to leave the working life behind (which don't have to happen at the same time) are the only things to consider regarding the Social Security program. However, there are plenty of other tools that SSA coverage can provide as you look to build your financial future. From proof of income documentation when applying for government services or a new loan to spousal benefits, Social Security isn't just a simple tax on your income as a worker and pension-type fund to support you when you retire. There's a lot more to the total package offered by the program, and some of the benefits integrated into its structure can make a big difference for those in a particularly unique circumstances.

Perhaps the most important benefit that many people may not have thought about is coverage for dependents. Many retired people and those nearing retirement help care for young family members. Around 7 million older Americans live with minor grandchildren, with a significant number acting as primary caregiver rather than simply living with their family members. While Americans certainly have to think about the reality that caring for elderly parents alongside their own children may be in the cards, the opposite can also be true.

Many seniors have taken over the duties of care for their grandchildren out of necessity or as a means of offering critical assistance. If your minor family member is reliant on you for at least half of their financial needs then they may be entitled to dependent benefits when you retire. Similar to spousal benefits, a benefit for a dependent, minor child is an additional financial payment that doesn't affect your own Social Security entitlements. Dependent benefits are provided at 50% of the regular value (although family caps can apply in some cases). Simply put, this adds a steady stream of additional cash into your family home to care for young children when they need it the most. Similarly, if you were to die, the child would continue to receive a survivor's benefits, valued financially at up to 75% of your primary benefit amount.

Another important benefit is one that many Americans never need to think about. Nevertheless, it's a critically important stopgap for millions who have or will spend a portion of their careers working outside the U.S. People who have worked in foreign countries and foreigners who began life elsewhere before moving to the United States may think that their retirement benefits are in jeopardy. This worry comes into play when considering both American retirement benefit availability and that of the country they previously worked in. Working, on its own, isn't enough to qualify for Social Security benefit checks. You'll need to pay taxes and gain credits that make you eligible to receive benefits. But a worker that moves from abroad may spend just a short time in the country before hitting retirement age.

For people who have worked in 30 foreign nations, there exists as series of bilateral agreements between governments that allow for these years of work elsewhere to count toward a person's benefit eligibility. A spate of EU nations, as well as Australia, Japan, Chile, and Brazil, among many others, are featured in this list. Essentially, a worker who has spend time abroad can bring their foreign earnings into the picture when it comes time to consider their Social Security benefits. Similarly, this allows Americans working abroad to minimize their tax liability and pay into only one retirement system at a time.