Social Security 101 1
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
my Social Security Your Online Account... Your Control... www.socialsecurity.gov/myaccount 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
my Social Security Services If you don t get benefits, you can View, save, and print your online Social Security Statement. If you do get benefits you can Get your benefit verification letter; Check your benefit and payment information and your earnings record; Change your address and phone number; and Start or change your direct deposit. 4
How Do You Qualify for Retirement Benefits? You need to work to earn Social Security credits Each $ 1,300 in earnings gives you one credit Max. of 4 credits per year Must have 40 Credits (10 years of work) to receive a monthly benefit Based on Highest 35 years of work To earn 4 credits in 2017, you must earn at least $ 5,200 gross at any point in the year.. 6
Full Retirement Age Year of Birth Full Retirement Age 1937 or earlier 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 or later 67 7
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
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 www.socialsecurity.gov/estimator 9
In Addition to the Retiree, Who Else Can Get Benefits? Your Child Biological or Adopted Child not married and under 18 or under 19 if in high school Not married and disabled before the age of 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
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
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. Ex-spouse must be at least age 62 Ex-spouse 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
Examples of Spouse s Benefits Ricky receives $1200 a mo. Lucy files for benefits, she is entitled to $1000 a mo. Lucy would not qualify for spousal benefits because her amount is more than half of his. She can provide for her needs through her benefit amount. Lucy is not dependent on Ricky s benefit. Edith files for benefits, eligible for $1800 a mo. Her husband, Archie is already receiving $600.00 a mo. Archie will receive $600.00 from his record and an additional $300.00 from Edith s record. Note: Archie cannot receive the extra $300 until Edith files for benefits. 13
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
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 own record at age 62 or older Full benefits to both widow or widower and divorced widow or widower 15
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 $ 16,920/yr. ( $ 1,410/mo.) $ 1 for every $ 2 The Year Full Retirement Age is Reached $ 44,880/yr. ( $ 3,790/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
How Do I Apply for Retirement Benefits? Earliest point to contact SSA is 3 months. Apply online at www.socialsecurity.gov 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 1-800-772-1213 ; or Apply at your local Social Security office. 17
Applying for Retirement Benefits 18
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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. 20
Medicare 21
When Can I Get Medicare? 65 & older 24 months after entitlement to Social Security disability benefits Amyotrophic Lateral Sclerosis Permanent kidney failure and receive maintenance dialysis or a kidney transplant -or- -or- -or- -or- Exposure to Environmental Health Hazards (New Legislation) 22
Don t Forget about Medicare Medicare Part A: Inpatient- No Premium Medicare Part B: Outpatient- $134 mo. (2017) Medicare Part D: Prescription Drugs (Avg. $35) Note: SSA is not involved with Part C plans: Medicare Supplement, Advantage Plans, etc. Contact Georgia Cares for assistance: 1-866-552-4464 or mygeorgiacares.org 23
Don t Forget about Medicare If receiving cash benefits before age 65, automatically enrolled into Medicare Part A and Part B. Premiums are deducted from benefit. If still working at age 65 and covered by health insurance from current employer or spouse s employer, apply for the Medicare Part A only. Check with HR first. Once you or spouse, stop working, have 8 months to contact Social Security to enroll into Medicare Part B. Failure to do so could result in a 10% penalty for each year you fail to enroll into Part B. If not working at 65 and not covered under spouse s employer s health insurance and waiting to start cash benefits after age 65, contact Social Security 3 months before 65 to apply for Medicare only. Will pay Medicare directly until cash benefits start. 24
Example of a Medicare Card 25
For More Medicare Information 1-800-MEDICARE (1-800-633-4227) TTY 1-877-486-2048 www.medicare.gov 26
Visit Our Website or Call! www.socialsecurity.gov -or- 1-800-772-1213 TTY 1-800-325-0778 27