it's your future socialsecurity
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Social Security. IT'S YOUR FUTURE www.socialsecurity.gov. Social Security. HELP YOU HELP OTHERS. History - Social Security’s Programs. 1935 Retirement Insurance. 1939 Survivors Insurance. 1956 Disability Insurance. Other Programs. 1965 Medicare. 2003 Medicare Part D. - PowerPoint PPT PresentationTRANSCRIPT
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Social Security
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Social Security
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History - Social Security’s Programs
1935Retirement Insurance
1956Disability Insurance
1939Survivors Insurance
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Other Programs
1965Medicare
2003Medicare
Part D
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A Foundation for Planning Your Future
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ABOUT 53 MILLION PEOPLE
Who Gets Benefits from Social Security?
34 million Retired Workers3 million Dependents
8 million Disabled Workers, 2 million Dependents
4.5 millionWidows/ Widowers
2 millionChildren of
Deceased Workers
4/2010
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Where Does the Money Come From?
Payroll Tax 83%
Trust Fund Interest 14%
Taxation of Benefits 3%
Social Security Trust Fund 2009
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Are Social Security Benefits Taxed?
Adjusted Gross Income Amount of SS + ½ of Annual SS benefit federally
taxable
Individ. $25,000 to $33,999 50% Over $34,000 85%
Couple $32,000 to $43,999 50% Over $44,000 85%
In 2016, Social Security Will Begin PayingMore in Benefits than is Collected in Taxes
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In 2016, Social Security Will Begin PayingMore in Benefits than is Collected in Taxes
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At exhaustion in 2037,only about 78% of
benefits could be paid.
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Work to Earn Social Security Credits
Each $1,120 in earnings gives you one credit
You can earn a maximum of 4 credits per year
Example: To earn 4 credits in 2010, you must earn at least $4,480. Earning 40 credits throughout your working life will qualify you for a retirement benefit.
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Full Retirement Age (FRA)Year of Birth Full Retirement Age1937 651938 65 & 2 months1939 65 & 4 months1940 65 & 6 months1941 65 & 8 months1942 65 & 10 months1943 – 1954 661955 66 & 2 months1956 66 & 4 months1957 66 & 6 months1958 66 & 8 months1959 66 & 10 months1960 & later 67
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Your Age Affects Your Benefits
If You’re a Worker and Retire
At age 62, you get a lower monthly payment permanently At your full retirement age, you get your full benefit You get an even higher monthly payment if you work past your full retirement age
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In Addition to the Retiree,Who Else Can Get Benefits?
Your Spouse At age 62 At any age if caring for child under 16 or disabled Divorced spouses may qualify as long as the marriage lasted 10 years & currently unmarried
Your Child Not married under 18 (under 19 if still in high school) Not married and disabled before age 22
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Spouse Benefits Example
The working spouse at age 66 receives $1000.00 per month.
Potentially, his/her spouse can receive up to 50% of the $1000.00 and will not lower working spouses amount.
Age 66 $500.00 Age 62 $350.00
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How Social Security Determines Benefits
Social Security benefits are based on earnings
Step 1 Your wages are adjusted for changes in wage levels
Step 2 Find the monthly average of your 35 highest earnings years
Step 3 Result is “average indexed monthly earnings”
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The Social Security Statement
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Use the New Retirement Estimator
You can get estimates of your future Social Security retirement benefits using our new online Retirement Estimator.
No manual keying of earnings is needed
‘What if’ scenarios are easy
It’s convenient, secure and quick.www.socialsecurity.gov/estimator
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You Can Work & Still Receive Benefits
You Can If You Make More,If You Are Make Up To Some Benefits Will
Be Withheld
Under FullRetirement Age $14,160/yr. ($1,180/mo.) $1 for $2
Year Full RetirementAge is Reached $37,680/yr. ($3,140/mo.) $1 for $3
Month Full RetirementAge and Above No Limit No Limit
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Who Can Get Survivors Benefits?
Widow or Widower:
Reduced benefits at age 60
If disabled as early as age 50
At any age if caring for child under 16 or disabled
Divorced widows/widowers may qualify - 10 years of marriage and unmarried or remarried after age 60 or 50 disabled.
Your Child if:
Not married under age 18 (under 19 if still in high school)
Not married and disabled before age 22
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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.
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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?
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Medicare Coverage
Part A Hospital Insurance Covers most inpatient hospital expenses.
2010 Deductible $1,100
Part B Supplementary Medical Insurance Covers 80% doctor bills & other outpatient medical
expenses after 1st $155 in approved charges.2010 Monthly Premium $110.50
Part D Medicare Prescription Drug Plan Covers a major portion of prescription drug costs
for Medicare beneficiaries. 2010 average Monthly Premium $31.90
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For More Medicare Information
1-800-MEDICARE(1-800-633-4227)
TTY 1-877-486-2048
www.medicare.gov
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Social Security’s Online Services
Retirement & Disability Applications Apply for Extra Help Retirement/Survivors/Disability Planner Request a Statement
Change of Address Medicare Card Replacements Request a Benefit Verification Letter Start or Change Direct Deposit