Kenny Oguejiofor Public Affairs Specialist

Transcription

1 Kenny Oguejiofor Public Affairs Specialist

2 How you Qualify Factors to consider when deciding the right time to file Life Expectancy Early Vs. Delaying RETIREMENT BENEFITS

3 How Do You Qualify for Retirement Benefits? You need to work to earn Social Security credits Each $ 1,220 in earnings gives you one credit You can earn a maximum of 4 credits per year Example: To earn 4 credits in 2015, you must earn at least $ 4,880. Earning 40 credits (10 years of work) throughout your working life will qualify you for a retirement benefit.

4 Thinking of Retiring? Deciding what is the right age to retire How working after retirement can affect benefits Medicare considerations Online retirement estimator How to apply online for benefits

5 Life Expectancy for Those Age 65 Today Men Women U.S. Population White African American Hispanic Asian American Indian 84 88

6 Percentage of Benefits Early Vs. Delaying 130% 120% 110% 100% % 80% 70% Age When You Begin Taking Social Security Benefits (Based on Full Retirement Age [FRA] of 66)

7 Age to receive full Social Security Benefits Year of Birth Full Retirement Age % at age 62 % at age % % months 74.2% % months 73.3% % months 72.5% % months 71.7% % months 70.8% % 1960 or later % %

8 Other individuals that could be due benefits on the workers record AUXILIARY BENEFITS

9 Your Child In Addition to the Retiree, Who Else Can Get Benefits? Not married-under 18 (under 19 if still in high school) Not married and disabled before age 22 Your Spouse Age 62 or older At any age, if caring for a child under age 16 or disabled

10 In Addition to the Retiree, Who Else Can Get Benefits? Your Ex-Spouse Marriage lasted at least 10 years Be unmarried at the time of filing Ex-spouse 62 or older Divorced at least two years and you and your ex-spouse are at least 62, he or she can get benefits even if you are not retired Ex-spouse s benefit amount has no effect on the amount you or your current spouse can get

11 Spouse s Benefit Computation 50% - Spousal benefits You could be entitled up to half of your spouse's benefit. Benefit is 50% of worker s unreduced benefit Reduction for early retirement If spouse s own benefit is less than 50% of the worker s, the benefits are combined Does not reduce payment to worker

12 Social Security Filing Strategies STRATEGIES

13 1. Delaying benefit Starting your Retirement benefits after normal retirement age may result in larger benefits. With delayed retirement credits (AFTER AGE 66), a person can receive his or her largest benefit by retiring at age 70.

14 Advantage: 2. Voluntary Suspension Filing & Suspending Benefits Worker earns delayed retirement credits, while family members get benefits on the record When to use: Worker must be at least full retirement age at time of filing, or month benefits will begin Eligible family members present

15 Strategy 3. Spouse Benefits Option Advantage: Receive a benefit while earning delayed retirement benefits on own benefits Who, How, and When: Worker with the higher benefit payable saves their retirement for later (Delayed Retirement) There is a spouse entitled to Social Security Benefits, and receiving payments Worker needs to be at least full retirement age, and spouse must be receiving Social Security Benefits

16 Example of Spouses Benefit Option Pick and Choose Scenario Worker age - 66, Spouse 62 (Higher Earner): $2,010/month at Age-66 Wife (Own work): $1,508/month at Age 66 Wife files for Retirement at 62 ($1,131/month) At Full Retirement Age, files for Spouse Benefits Only, instead of his own retirement ($754/month) at 70, can take own retirement of $ /month

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18 File and Suspend Restrict Scope of Application

19 How a Retirement Benefit is Calculated The Effect of Filing on Survivor Benefits Annual Earnings Limits OTHER FACTORS TO CONSIDER

20 How Social Security Determines Your Benefit Social Security benefits are based on earnings Step 1 -Your wages are adjusted for changes in wage levels over time Step 2 -Find the monthly average of your 35 highest earnings years Step 3 -Result is average indexed monthly earnings

21 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 $ 15,720/yr. ( $ 1,310/mo.) $ 1 for every $ 2 The Year Full Retirement Age is Reached $ 41,880/yr. ( $ 3,490/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.

22 Who Can Get Survivors Benefits? 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: Full benefits at full retirement age Reduced benefits at age 60 If disabled as early as age 50 At any age if caring for child under 16 or disabled Remarriage after age 60 (50 if disabled) Divorced widows/widowers may qualify

23 Widow or Widower Benefit Computation 100% - Survivor benefits You could be entitled up to 100% of your deceased spouse s benefit You will be entitled to up to 100% of a deceased spouse's benefit or on your own, whichever of the benefit is higher. At full retirement age, 100% of deceased worker s unreduced benefit At age 60, 71.5% of deceased worker s unreduced benefit Reduced benefits on one record at age 60, reduced or unreduced benefit on other record at age 62 or older

24 Disability Benefits Medicare How to Apply for Benefits OTHER BENEFITS

25 Social Security s Disability Definition A medical condition or combination of impairments preventing substantial work for at least 12 months, or expected to result in death. The determination also considers age, education & work experience.

26 Worker Who Can Get Disability Benefits? Must have paid into Social Security five out of last 10 years For younger workers, under age 31 less work is required Spouse At age 62 At any age if caring for child under 16 or disabled Divorced spouses may qualify

27 Who Can Get Medicare? 65 & older 24 months after entitlement to Social Security disability benefits Amyotrophic Lateral Sclerosis -or- -or- -or- Permanent kidney failure and receive maintenance dialysis or a kidney transplant

28 Medicare Has Four Parts Part A - Hospital Insurance Covers most inpatient hospital expenses 2015 deductible $ 1,260 Part B - Medical Insurance Covers 80% doctor bills & other outpatient medical expenses after 1 st $ 147 in approved charges 2015 standard monthly premium $

29 How to Apply for Benefits? You should apply for benefits three months before you want your payments to start. Benefits are paid the month after they are due. Apply online at It is the most convenient way to apply; or Call Social Security to schedule an appointment (TTY ); or Apply at your local Social Security office.

30 MySocialSecurity Retirement Estimator FAQs How to Contact Social Security ONLINE RESOURCES

31 Social Security Home Page

32 my Social Security Services

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36 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

37 Example of the Results

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39 Visit the website Contacting Social Security Call the toll-free number Specific questions can be answered from 7 a.m. to 7 p.m., Monday through Friday. Information is provided by automated phone service 24 hours a day. If deaf or hard of hearing, call Social Security s TTY number, Visit a local office Most offices are open to the public Monday, Tuesday, Thursday and Friday from 9 a.m. to 4:00 p.m. and Wednesdays from 9 a.m. to 12:00 p.m., except Federal holidays.