Social Security 101 1

Transcription

1 Social Security 101 1

2 Thinking of Retiring? It is a personal decision Decide what is the right age Working after retirement? Medicare considerations Use tools on SSA s website to help you make an informed decision 2

3 my Social Security Your Online Account... Your Control... my my Social Security is an easy-to-access, easy-to-use portal to view and update some of your own Social Security information. 3

4 How Do You Qualify for Retirement Benefits? You need to work to earn Social Security credits Each $ 1,200 in earnings gives you one credit Max. of 4 credits per year Based on Highest 35 years of work Example: To earn 4 credits in 2014, you must earn at least $ 4,800 Gross. Earning 40 credits (10 years of work) throughout your working life will qualify you for a retirement benefit. 6

5 Full Retirement Age Year of Birth Full Retirement Age 1937 or earlier & 2 months & 4 months & 6 months & 8 months & 10 months & 2 months & 4 months & 6 months & 8 months & 10 months 1960 or later 67 7

6 Your Age At The Time You Elect Retirement Benefits Affects the Amount For example, if you were born from 1943 through 1954: Age 62 Age 66 Age 70 75% of benefit 100% of benefit 132% of benefit 8

7 Use the Retirement Estimator Convenient, secure, and quick financial planning tool Immediate and accurate benefit estimates Lets you create What if scenarios based on different ages and earnings 9

8 Your Child In Addition to the Retiree, Who Else Can Get Benefits? Biological or Adopted Child not married and under 18 or under 19 if in high school Not married and disabled before age 22 Your Spouse Age 62 or older with little or no work history At any age, if caring for a child under age 16 or disabled 10

9 Spouse s Benefit Computation Benefit is up to 50% of worker s benefit Receive 50% if spouse is full retirement age Reduction for early retirement Example: Age 62-35% The worker must be receiving benefits Does not reduce payment to worker If spouse s own benefit is less than 50% of the worker s, the benefits are combined 11

10 In Addition to the Retiree, Who Else Can Get Benefits? Divorced Spouse Criteria Marriage lasted at least 10 years Age 62 or older and unmarried Divorced at least two years. The other person does not have to receive benefits. Ex-spouse s benefit amount has no effect on the amount you or your current spouse can get If own benefit is less than 50% of the worker s, the benefits are combined 12

11 Examples of Spouse s Benefits Cliff Huxtable receives $1200 a mo. Claire Huxtable files for benefits, she is entitled to $1000 a mo. Claire cannot file for benefits on Cliff s record because her amount is more than half of his. Claire is not dependent on Cliff s benefit. She can provide for her needs through her benefit amount. Edith receives $1800 a mo. Her husband, Archie files for benefits, he is entitled to $ a mo. Archie will receive $ from his record and an additional $ from Edith s record. (Remember: Archie cannot receive the extra $300 until Edith files for benefits) 13

12 Who Can Get Survivors Benefits? Your Child if: Not married under age 18 or 19 if in high school Not married and disabled before age 22 Widow or Widower: Reduced benefits at age 60 Full benefits at full retirement age At any age if caring for child under 16 or disabled Divorced widows/widowers may qualify 14

13 Widow or Widower Benefit Computation At age 60, 71.5% of deceased worker s unreduced benefit At Full Retirement Age, 100% of deceased worker s benefit Reduced widow/widower benefits at age 60, then switch to another record at age 62 or older Full benefits to both widow or widower and divorced widow or widower 15

14 You Can Work & Still Receive Benefits You Can If You Make More, If You Are Make Up To Some Benefits Will Be Withheld Under Full Retirement Age $ 15,480/yr. ( $ 1,290/mo.) $ 1 for every $ 2 The Year Full Retirement Age is Reached $ 41,400/yr. ( $ 3,450/mo.) $ 1 for every $ 3 Month of Full Retirement Age and Above No Limit No Limit Note: If some of your retirement benefits are withheld because of your earnings, your benefits will be increased starting at your full retirement age to take into account those months in which benefits were withheld. 16

15 How Do I Apply for Retirement Benefits? Earliest point to contact SSA is 3 months. Apply online at Why Online? Safe, Secure and Fast It is the most convenient way to apply! If you are not online, you are waiting in line. Call Social Security to schedule an appointment ; or Apply at your local Social Security office. 17

16 Applying for Retirement Benefits 18

17 19

18 Payment Delivery Day No partial month benefits (for age 62 must be born 1st or 2nd day of the month) Benefits paid the month following the month they are due. (June s payment issued in July) Pay date based on day of workers birth: 1st through 10th - 2nd Wednesday 11th through 20th - 3rd Wednesday 21st through 31st - 4th Wednesday If drawing benefits before June 1, 1997 paid on 3rd day of the month. 21

19 Social Security Embraces Social Media Discover us on Facebook, Twitter, YouTube, and Pinterest View popular agency webinar videos at Sign-up to get s and SMS/Texting when we update popular web pages 22

20 Visit Our Website or Call! -or TTY

21 BREAK 30