Upload
maria-tucker
View
215
Download
0
Tags:
Embed Size (px)
Citation preview
Retirement Insurance
19351935Survivors Insurance
19391939
History - Social Security’s ProgramsHistory - Social Security’s Programs
Disability Insurance
19561956
Medicare Supplemental Security Income
Other ProgramsOther Programs
19651965 19721972
A Foundation for Planning Your FutureA Foundation for Planning Your Future
3-Legged Stool of Retirement Security3-Legged Stool of Retirement Security
The Social Security StatementThe Social Security Statement
The Statement provides youwith estimates of monthlySocial Security retirement,disability and survivors benefits
The Statement provides youwith estimates of monthlySocial Security retirement,disability and survivors benefits
The Statement provides earnings for you to checkfor accuracy
The Statement provides earnings for you to checkfor accuracy
The Social Security StatementThe Social Security Statement
Payments to
Beneficiaries
Workers&
Employers
Who Pays for Social Security?Who Pays for Social Security?
You Need to Work to Earn Social Security CreditsYou Need to Work to Earn Social Security Credits
Each $970 in earnings gives you one creditEach $970 in earnings gives you one credit
You can earn a maximum of 4 credits per year
You can earn a maximum of 4 credits per year
Example: To earn 4 credits in 2006, you must earn at least $3,880. Earning 40 credits throughout your working life will qualify you for a retirement benefit.
Example: To earn 4 credits in 2006, you must earn at least $3,880. Earning 40 credits throughout your working life will qualify you for a retirement benefit.
Your Age When You Retire Affects Your BenefitsYour Age When You Retire Affects Your Benefits
If You’re A Worker and Retire:If You’re A Worker and Retire:
At age 62, you get less money permanentlyAt age 62, you get less money permanently
At your full retirement age, you get your full benefitAt your full retirement age, you get your full benefit
You get even more money if you work past your full retirement ageYou get even more money if you work past your full retirement age
In Addition to the Retiree,Who Else Can Get Benefits?In Addition to the Retiree,
Who Else Can Get Benefits?
Your SpouseYour Spouse
Your ChildYour Child
At age 62At any age if caring for child under 16 or disabledDivorced spouses may qualify
At age 62At any age if caring for child under 16 or disabledDivorced spouses may qualify
Not married under 18(under 19 if still in high school)
Not married and disabled before age 22
Not married under 18(under 19 if still in high school)
Not married and disabled before age 22
Full Retirement AgeFull Retirement Age
How Social Security Determines Your BenefitHow Social Security Determines Your Benefit
Social Security benefits are based on earnings
Step 1 – Your wages are adjusted for inflationStep 1 – Your wages are adjusted for inflation
Step 2 – Find the average of your 35 highest earnings yearsStep 2 – Find the average of your 35 highest earnings years
Step 3 – Result is “average indexed monthly earnings”Step 3 – Result is “average indexed monthly earnings”
What You’ll Get at Full Retirement AgeWhat You’ll Get at Full Retirement Age%
of
earn
ings
LowEarner
AverageEarner
HighEarner
57%
43%
36%
Will My Social Security Benefit Be Taxed?
• Determine Modified Adjusted Gross Income-- All taxable income plus 1/2 of Social Security benefit received
• Individual-- $24,999 or less - no Federal tax on Social Security benefit-- $25,000 - $33,999 - pay Federal tax on 50% of Social Security benefit-- $34,000 or more- pay Federal tax on 85% of Social Security benefit
For more information,call IRS toll free:1-800-829-3676
Will My Social Security Benefit Be Taxed?
• Couple-- $31,999 or less - no Federal tax-- $32,000 - $43,999 - pay Federal tax on 50% of Social Security benefit-- $44,000 or more - pay Federal tax on 85% of Social Security benefit
For more information,call IRS toll free:1-800-829-3676
You Can Work & Still Receive BenefitsYou Can Work & Still Receive Benefits
$12,480/yr.($1,040/mo.)
$33,240/yr.($2,770/mo.)
No Limit
Under full retirement age
Reaching full retire-ment age this year
Full retirement age & above
$1 for every $2
$1 for every $3
Who Can Get Survivors Benefits?Who Can Get Survivors Benefits?
Reduced benefits at age 60Reduced benefits at age 60
If disabled as early as age 50If disabled as early as age 50
At any age if caring for child under 16 or disabledAt any age if caring for child under 16 or disabled
Divorced widows/widowers may qualifyDivorced widows/widowers may qualify
Not married under age 18 (under 19 if still in high school)Not married under age 18 (under 19 if still in high school)
Not married and disabled before age 22Not married and disabled before age 22
If Your Child Is:If Your Child Is:
Widow or Widower:Widow or Widower:
Parents Parents
Other Survivors BenefitsOther Survivors Benefits
Lump Sum Death Payment ($255) Lump Sum Death Payment ($255)
Age 62 and was receiving at least one-half support from deceased worker
Age 62 and was receiving at least one-half support from deceased worker
Most spouses or childrenMost spouses or children
Social Security’s Disability Definition:Social Security’s Disability Definition:
A medical condition preventing substantial work for at least 12 months, or expected to
result in death. The determination also considers age, education & work experience.
A medical condition preventing substantial work for at least 12 months, or expected to
result in death. The determination also considers age, education & work experience.
Who Can Get Disability Benefits?Who Can Get Disability Benefits?
WorkerWorker
At age 62At age 62
Must have paid into Social Security five out of last 10 years
Must have paid into Social Security five out of last 10 years
At any age if caring forchild under 16 or disabledAt any age if caring forchild under 16 or disabledDivorced spouses may qualifyDivorced spouses may qualify
SpouseSpouse
Who Can Get Disability Benefits?Who Can Get Disability Benefits?
ChildChild
Not married under 18(under 19 if still in high school)Not married under 18(under 19 if still in high school)
Not married and disabled before age 22Not married and disabled before age 22
65 & older
OR
Receiving Social Security disability benefits at least 24 months
OR
Permanent Kidney failure
OR
Amyotrophic Lateral Sclerosis (ALS)
65 & older
OR
Receiving Social Security disability benefits at least 24 months
OR
Permanent Kidney failure
OR
Amyotrophic Lateral Sclerosis (ALS)
Who Can Get Medicare?Who Can Get Medicare?
Medicare CoverageMedicare Coverage
Covers most inpatient hospital expenses.
2006 Deductible $952
Covers 80% doctor bills & other outpatient medical expenses after 1st $124 in approved charges.
2006 Monthly Premium $88.50
Part A (Hospital Insurance)Part A (Hospital Insurance)
Part B (Supplementary Medical Insurance)Part B (Supplementary Medical Insurance)
When Can I Sign Up for Medicare?When Can I Sign Up for Medicare?
Medicare Enrollment Periods: Initial - at age 65
Special - if still working
General - January-March
How Will the Prescription Drug Plan Affect You?
How Will the Prescription Drug Plan Affect You?
Available January 2006
Enrollment is voluntary
Premiums vary State-by-State
The standard deductible is $250 per year
For More InformationFor More Information
1-800-MEDICAREwww.medicare.gov1-800-MEDICAREwww.medicare.gov
What Should You Do toPrepare for Your Retirement?
What Should You Do toPrepare for Your Retirement?
1-800-772-1213TTY 1-800-325-0778
1-800-772-1213TTY 1-800-325-0778
Call the yearBEFORE
you retireAll information
can be obtained by phone
Call the yearBEFORE
you retireAll information
can be obtained by phone
www.socialsecurity.govwww.socialsecurity.gov
What Will You Need When Applyingfor Your Social Security Benefits?
What Will You Need When Applyingfor Your Social Security Benefits?
America Is Getting OlderU.S. Population Age 65 & Older
America Is Getting OlderU.S. Population Age 65 & Older
11 Million
1946(8% of totalpopulation)
36 Million
2004(13% of totalpopulation)
69 Million
2030(20% of totalpopulation)
Ch
ild
ren
Per
Wom
anU.S. Birth Rate 1920-2020U.S. Birth Rate 1920-2020
The Number of Workers Per Beneficiary Is DecreasingThe Number of Workers Per Beneficiary Is Decreasing
Why Are Changes Needed?Why Are Changes Needed?
In 2017, Social Security Will Begin PayingMore in Benefits Than is Collected in TaxesIn 2017, Social Security Will Begin Paying
More in Benefits Than is Collected in Taxes
After 2041, only about 74%of benefits could be paid with
the taxes from workers
20172017
20412041
Social Security’s Online ServicesSocial Security’s Online Services
Retirement & Disability applicationsRetirement & Disability applications
Retirement/Survivors/DisabilityPlannerRetirement/Survivors/DisabilityPlanner
Benefit CalculatorsBenefit Calculators
Medicare Card ReplacementsMedicare Card Replacements
Request a StatementRequest a Statement
Request a Benefit Verification LetterRequest a Benefit Verification Letter
Change of AddressChange of Address
www.socialsecurity.govwww.socialsecurity.gov
Retirement PlannerRetirement Planner
Visit Our Website or Call!
www.socialsecurity.gov-or-
1-800-772-1213TTY 1-800-325-0778