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Social Security 101

Social Security 101. 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. my Social Security.

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Social Security 101

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  1. Social Security 101

  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

  3. mySocial Security • Your Online Account ... Your Control ... www.socialsecurity.gov/myaccount my • mySocial Security is an easy-to-access, easy-to-use portal to view and update some of your own Social Security information.

  4. How Do You Qualify for Retirement Benefits? • You need to work to earn Social Security “credits” • Each $1,260 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 2016, you must earn at least $5,040 Gross at any point in the year. • .

  5. 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

  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 75% of benefit • Age 66 100% of benefit • Age 70 132% of benefit

  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 www.socialsecurity.gov/estimator

  8. 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

  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

  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. • 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

  11. 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 receives $1800 a mo. Her husband, Archie files for benefits, he is entitled to $600.00 a mo. Archie will receive $600.00 from his record and an additional $300.00 from Edith’s record. • (Remember: Archie cannot receive the extra $300 until Edith files for benefits)

  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

  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

  14. You Can Work & Still Receive Benefits You CanIf You Make More, If You AreMake Up ToSome 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.

  15. 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.

  16. Applying for Retirement Benefits

  17. 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. Payment Delivery Day

  18. Medicare

  19. When Can I Get Medicare? 65 & older -or- 24 months after entitlement to Social Security disability benefits -or- Amyotrophic Lateral Sclerosis -or- Permanent kidney failure and receive maintenance dialysis or a kidney transplant -or- Exposure to Environmental Health Hazards (New Legislation)

  20. Don’t Forget about Medicare • Medicare Part A: Inpatient- No Premium • Medicare Part B: Outpatient- $121.80 a mo. (2016) • Medicare Part D: Prescription Drugs (Avg. $34) • Note: SSA is not involved with Part C plans: HMOs, Advantage Plans, etc. • Contact Georgia Cares for assistance: 1-866-552-4464 or mygeorgiacares.org

  21. 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. 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 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 on a quarterly basis until cash benefits are started.

  22. Example of a Medicare Card

  23. For More Medicare Information 1-800-MEDICARE (1-800-633-4227) TTY 1-877-486-2048 www.medicare.gov

  24. Visit Our Website or Call! www.socialsecurity.gov -or- 1-800-772-1213 TTY 1-800-325-0778

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