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