Retirement Planning Today for Tomorrow s Future 2018 Presented by: Donna Maitland District Manager Social Security Administration
How You Qualify For Social Security Retirement Factors To Consider When Deciding When To File RETIREMENT BENEFITS 2
How You Qualify for Benefits You need to work to earn Social Security credits Each $ 1,320 in earnings gives you one credit You can earn a maximum of 4 credits per year Example: To earn 4 credits in 2018, you must earn at least $5,280. Earning 40 credits (10 years of work) throughout your working life will qualify you for a retirement benefit. 3
How You Know if You are Insured The Online Social Security Statement will tell you /myaccount As part of cost-saving measures due to the continuing resolution, an agency decision was made to mail fewer paper Social Security Statements. We will only mail Statements to people age 60 and over, who are not getting benefits, and don t have a my Social Security account. Individuals unable to create a my Social Security account can request a mailed Statement by visiting www.socialsecurity.gov/myaccount 4
Your Age at the Time You Elect Retirement Benefits Affects the Amount If You re a Worker and Retire At age 62, you get a lower monthly payment At your full retirement age, you get your full benefit Between your full retirement age and age 70, you earn Delayed Retirement Credits (DRC 8% per year), which increases your monthly payment. 5
File Early or Delay Filing? https://www.ssa.gov/oact/quickcalc/early_late.html 6
Percentages Based on Year of Birth Year of Birth Full Retirement Age % at age 62 % at age 70 1943-1954 66 75.0% 132.00% 1955 66 + 2 months 74.2% 130.67% 1956 66 + 4 months 73.3% 129.33% 1957 66 + 6 months 72.5% 128.00% 1958 66 + 8 months 71.7% 126.67% 1959 66 + 10 months 70.8% 125.33% 1960 or later 67 70.0% 124.00% 7
How Social Security Determines Your Benefit https://www.ssa.gov/pubs/en-05-10070.pdf Social Security benefits are based on your lifetime earnings Step 1 We adjust or index your actual earnings to account for changes in average wages over time Step 2 We find your average indexed monthly earnings using the 35 years in which you earned the most (do not need to be consecutive, do not need to be most recent, does not even have to a full 35 years) Step 3 We apply a formula to your average indexed monthly earnings and arrive at your basic benefit or primary insurance amount 8
FAQs related to benefit computation -/faq 2018 Maximum Social Security Benefit Paid At Full Retirement Age $2,788 http:///pubs/en-05-10070.pdf 2018 Maximum Taxable Earnings $128,400
Retirement Estimator /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 10
Example of the Results 11
Social Security Benefits and Taxation http:///planners/taxes.htm If you file a joint return and your combined income is: Between $32,000 and $44,000, you have to pay income tax on up to 50% of your benefits. More than $44,000, up to 85% of your benefits may be taxable. If you file as an individual and your combined income is: Between $25,000 and $34,000, you have to pay income tax on up to 50% of your benefits. More than $34,000, up to 85% of your benefits may be taxable. ** Combined income is: Your adjusted gross income + Nontaxable interest + ½ of your Social Security = Your Combined Income 12
Other People Could Be Entitled On Your Record When You File Affects The Survivor Benefit AUXILIARY AND SURVIVOR BENEFITS 13
Other Benefits on the Retiree s Record Your Child 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 14
Divorced Spouse s Benefits 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 15
Survivor Benefits 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 Your Child if: Not married under age 18 (under 19 if still in high school) Not married and disabled before age 22 Remarriage after age 60 (50 if disabled) Divorced widow/widowers may qualify 16
Computations 50% - Spousal Benefits You could be entitled up to half of your spouse's benefit. Benefit is 50% of worker s unreduced full retirement amount (not age 70) Reduction for early retirement If spouse s own benefit is less than 50% of the worker s, the benefits are combined 100% - Survivor Benefit You could be entitled up to 100% of your deceased spouse s (divorced spouse s) benefit You will be entitled up to 100% of a deceased spouse's (divorced spouse s) benefit or your own, whichever 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 Does not reduce payment to worker Reduced benefits on one record at age 60, reduced or unreduced benefit on other record at age 62 or older 17
How to Work and Receive Benefits If You Are You Can Make Up To If You Make More, Some Benefits Will Be Withheld Under FRA* in 2017 Under FRA* in 2018 $16,920/yr. ($1,410/mo.) $17,040/yr. ($1,420/mo.) $1 for every $2 Turning FRA* in 2017 Turning FRA* in 2018 Month You Attain Full Retirement Age & Continuing *FRA = Full Retirement Age $44,880/yr. ($3,740/mo.) $45,360/yr. ($3,780/mo.) No Limit $1 for every $3 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. 18
How to apply for benefits You can apply for benefits three months before you want your payments to start. Benefits are paid the month after they are due. (Go to https://www.ssa.gov/pubs/en-05-10031.pdf for a payment calendar) Apply online at It is the most convenient way to apply; or Call Social Security to schedule an appointment 1-800-772-1213 (TTY 1-800- 325-0778) 19
If You Change Your Mind File And Suspend Deemed Filing Rules STRATEGIES 20
If you change your mind http:///retire2/withdrawal.htm Unexpected changes may occur after you make your decision about when to start your Social Security Retirement benefits. You may be able to withdraw your Social Security claim and re-apply at a future date. The withdrawal must be within 12 months of when you became entitled to retirement benefits. You are limited to one withdrawal per lifetime. You must repay all the benefits you and your family received. If you re also entitled to Medicare, you will need to decide whether or not you re also withdrawing Medicare. 21
File and Suspend https://www.ssa.gov/planners/retire/suspend.html Effective April 30, 2016 If you suspend your benefits, everyone else collecting on your record is suspended as well with the exception of divorced spouses. Also, if you do suspend your benefits, we will only permit reinstatement beginning with the month after the month of the request. If you have reached full retirement age, not receiving a reduced benefit, but are not yet age 70, you can ask to suspend your retirement benefit payments. If you suspend your benefits, they will start automatically the month you reach age 70. 22
New Deemed Filing Rules https://www.ssa.gov/planners/retire/applying6.html For those born BEFORE January 2, 1954 At your full retirement age, you can choose to receive only spouse s benefits and delay receiving your retirement benefit until a later date. For those born on January 2, 1954 or LATER You do not have the option of filing for just spouse s benefits. If you file for spouse s benefits, you must also file for retirement benefits. Basically, you file for one benefit and you will be effectively filing for all retirement or spousal benefits. 23
Who Gets It Four Parts Who Can Help MEDICARE 24
Medicare Eligibility 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 25
The Four Parts of Medicare Part A - Hospital Insurance Covers most inpatient hospital expenses 2018 deductible $ 1,340 Part B - Medical Insurance Covers 80% doctor bills & other outpatient medical expenses after 1 st $ 183 in approved charges 2018 standard monthly premium $ 134 Part C Medicare Supplement Insuance Health plan options offered by Medicare-approved private insurance companies- Additional premium is required Can help pay some of the health care costs that original Medicare doesn t cover, like copayments, coinsurance and deductibles Security Part D Prescription Drug Coverage Covers a major portion of your prescription drug costs Your out-of-pocket costs monthly premiums, annual deductible and prescription co-payments will vary by plan You enroll with a Medicare-approved prescription drug provider not Social 26
For More Information on Medicare Center for Medicare and Medicaid Services (CMS): www.medicare.gov 1-800-633-4227 Florida Medicare/Medicaid Assistance Program (MMAP): www.floridashine.org 1-888-242-4464 27
Creating An Account Social Security Statement Replacement Documents Benefit And Payment Details MY SOCIAL SECURITY 28
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my Social Security What You Can Do in Your Account 31
Social Security Statement 32
Earnings Record
What else can you do in mysocialsecurity? Replace Documents: Social Security Card SSA-1099 Medicare Card Get a Benefit Verification Letter: If you need proof that you are receiving Social Security benefits, Supplemental Security Income (SSI), and/or Medicare, or that you are not getting benefits, you can request a benefit verification letter online. This letter is sometimes called a "budget letter," a "benefits letter," a "proof of income letter," or a "proof of award letter." Check the Status of your application or appeal: The service provides detailed information about retirement, disability, Medicare, and Supplemental Security Income applications and appeals, filed either online at SocialSecurity.gov or with a Social Security employee. View or Update your Contact Information: People receiving Social Security (Retirement, Survivors and Disability) benefits and those enrolled in Medicare can use my Social Security to change their address and other contact information. 34
Benefit and Payment Details 35 35
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Frequently Asked Questions at Your Fingertips 37
Contacting Social Security /agency/contact/ Visit the website Call the toll-free number 1-800-772-1213 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, 1-800-325-0778. 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. 38