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3-Legged Stool of Retirement Security3-Legged Stool of Retirement Security
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The Social Security StatementThe Social Security Statement
The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits
The Statement allows you to check your earnings history for accuracy
The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits
The Statement allows you to check your earnings history for accuracy
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Full Retirement AgeFull Retirement Age
Year of Birth Full Retirement Age
1937 65
1938 65 & 2 months
1939 65 & 4 months
1940 65 & 6 months
1941 65 & 8 months
1942 65 & 10 months
1943 – 1954 66
1955 66 & 2 months
1956 66 & 4 months
1957 66 & 6 months
1958 66 & 8 months
1959 66 & 10 months
1960 & later 67
Year of Birth Full Retirement Age
1937 65
1938 65 & 2 months
1939 65 & 4 months
1940 65 & 6 months
1941 65 & 8 months
1942 65 & 10 months
1943 – 1954 66
1955 66 & 2 months
1956 66 & 4 months
1957 66 & 6 months
1958 66 & 8 months
1959 66 & 10 months
1960 & later 67
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Your Age When You Retire Affects Your BenefitsYour Age When You Retire Affects Your Benefits
If You’re A Worker and Retire
At age 62, you get a lower monthly payment permanently At your full retirement age, you get your full benefit You get an even higher monthly payment if you work past your full retirement age
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In Addition to the Retiree,Who Else Can Get Benefits?In Addition to the Retiree,
Who Else Can Get Benefits?
Your Spouse
At age 62 At any age if caring for child under 16 or disabled Divorced spouses may qualify
Your Child
Not married under 18 (under 19 if still in high school) Not married and disabled before age 22
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How Social Security Determines Your BenefitHow Social Security Determines Your Benefit
Social Security benefits are based on earnings
Step 1 Your wages are adjusted for changes in wage levels
Step 2 Find the monthly average of your 35 highest earnings years
Step 3 Result is “average indexed monthly earnings”
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If your average monthly earnings are = $5,200Then your monthly benefit would be = $1,871
Average Monthly Earnings $5,200
90% of First $680 = $612
32% of Earnings over $680 through $4,100 $3,420 = $1,094($4,100-$680=$3,420)
15% of Earnings over $4,100 $1,100 = $165($5,200-$4,100=$1,100)
$5,200$1,871
If your average monthly earnings are = $5,200Then your monthly benefit would be = $1,871
Average Monthly Earnings $5,200
90% of First $680 = $612
32% of Earnings over $680 through $4,100 $3,420 = $1,094($4,100-$680=$3,420)
15% of Earnings over $4,100 $1,100 = $165($5,200-$4,100=$1,100)
$5,200$1,871
Retirement Benefit Computation ExampleRetirement Benefit Computation Example
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You Can Work & Still Receive BenefitsYou Can Work & Still Receive Benefits
You Can If You Make More,If You Are Make Up To Some Benefits Will
Be Withheld
Under FullRetirement Age $14,160/yr. ($1,180/mo.) $1 for every $2
The Year Full RetirementAge is Reached $37,680/yr. ($3,140/mo.) $1 for every $3
Month of Full Retirement Age and Above No Limit No Limit
You Can If You Make More,If You Are Make Up To Some Benefits Will
Be Withheld
Under FullRetirement Age $14,160/yr. ($1,180/mo.) $1 for every $2
The Year Full RetirementAge is Reached $37,680/yr. ($3,140/mo.) $1 for every $3
Month of Full Retirement Age and Above No Limit No Limit
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What Will You Need When Applyingfor Your Social Security Benefits?
What Will You Need When Applyingfor Your Social Security Benefits?
Social Security number for each applicant
Proof of age (birth certificate)
Latest W-2 or self-employment tax return
Earnings estimate
Bank information for direct deposit
Information about marriages/divorces
Information about military or railroad service
Social Security number for each applicant
Proof of age (birth certificate)
Latest W-2 or self-employment tax return
Earnings estimate
Bank information for direct deposit
Information about marriages/divorces
Information about military or railroad service
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Who Can Get Survivors Benefits?Who Can Get Survivors Benefits?
Widow or Widower:
Reduced benefits at age 60
If disabled as early as age 50
At any age if caring for child under 16 or disabled
Divorced widows/widowers may qualify
Your Child if:
Not married under age 18 (under 19 if still in high school)
Not married and disabled before age 22
Widow or Widower:
Reduced benefits at age 60
If disabled as early as age 50
At any age if caring for child under 16 or disabled
Divorced widows/widowers may qualify
Your Child if:
Not married under age 18 (under 19 if still in high school)
Not married and disabled before age 22
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Social Security’s Disability Definition:Social Security’s Disability Definition:
A medical condition preventing substantial work for at least 12 months, or expected to
result in death. The determination also considers age, education & work experience.
A medical condition preventing substantial work for at least 12 months, or expected to
result in death. The determination also considers age, education & work experience.
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65 & older
-or-
Receiving Social Security disability benefits at least 24 months
-or-
Permanent kidney failure
-or-
Amyotrophic Lateral Sclerosis (ALS)
65 & older
-or-
Receiving Social Security disability benefits at least 24 months
-or-
Permanent kidney failure
-or-
Amyotrophic Lateral Sclerosis (ALS)
Who Can Get Medicare?Who Can Get Medicare?
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When Can I Sign Up for Medicare?When Can I Sign Up for Medicare?
Medicare Enrollment Periods: Initial - at age 65
Special - if still working
General - January-March
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Medicare CoverageMedicare Coverage
Part A Hospital Insurance Covers most inpatient hospital expenses.
2011 Deductible $1,132.00
Part B Supplementary Medical Insurance Covers 80% doctor bills & other outpatient medical
expenses after 1st $162 in approved charges.
2011 Monthly Premium $115.40
Part D Medicare Prescription Drug Plan Covers a major portion of prescription drug costs
for Medicare beneficiaries.
Part A Hospital Insurance Covers most inpatient hospital expenses.
2011 Deductible $1,132.00
Part B Supplementary Medical Insurance Covers 80% doctor bills & other outpatient medical
expenses after 1st $162 in approved charges.
2011 Monthly Premium $115.40
Part D Medicare Prescription Drug Plan Covers a major portion of prescription drug costs
for Medicare beneficiaries.
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For More InformationFor More Information
1-800-MEDICARE(1-800-633-4227)
www.medicare.gov
1-800-MEDICARE(1-800-633-4227)
www.medicare.gov
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What Should You Do toPrepare for Your Retirement?
What Should You Do toPrepare for Your Retirement?
1-800-772-1213TTY 1-800-325-0778
1-800-772-1213TTY 1-800-325-0778
Call the yearBEFORE
you retireAll information
can be obtained by phone
Call the yearBEFORE
you retireAll information
can be obtained by phone
www.socialsecurity.govwww.socialsecurity.gov
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Find Out About Your Social SecurityFind Out About Your Social Security
Request Your Social Security Statement for:
Estimates of benefits at different retirement ages
Different wage estimates
www.socialsecurity.gov
Request Your Social Security Statement for:
Estimates of benefits at different retirement ages
Different wage estimates
www.socialsecurity.gov
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Visit Our Website or Call!
www.socialsecurity.gov-or-
1-800-772-1213TTY 1-800-325-0778
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Social Security’s Online ServicesSocial Security’s Online Services
Retirement & Disability Applications
Retirement/Survivors/Disability Planner
Medicare Card Replacements
Request a Statement
Request a Benefit Verification Letter
Change of Address
Retirement & Disability Applications
Retirement/Survivors/Disability Planner
Medicare Card Replacements
Request a Statement
Request a Benefit Verification Letter
Change of Address
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