social security guide

7/29/2019 SOCIAL SECURITY GUIDE

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Retirement Benefts


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Contacting Social Security

Visit our websiteOur website,www.socialsecurity.gov, is a valuable

resource or inormation about all o Social Securitysprograms. At our website you also can:

Apply or retirement, disability, and Medicare benefts;

Review your Social Security Statement;

Get the address o your local Social Security ofce;

Request a replacement Medicare card; and

Find copies o our publications.

Call our toll-ree numberIn addition to using our website, you can call us toll-ree

at 1-800-772-1213. We treat all calls confdentially. We cananswer specifc questions rom 7 a.m. to 7 p.m., Mondaythrough Friday. Generally, youll have a shorter wait timei you call during the week ater Tuesday. We can provide

inormation by automated phone service 24 hours a day.I you are dea or hard o hearing, you may call our TTYnumber, 1-800-325-0778.

We also want to make sure you receive accurate andcourteous service. That is why we have a second SocialSecurity representative monitor some telephone calls.
http://c/Users/280843/AppData/Local/Adobe/InDesign/Version%207.5/en_US/Caches/InDesign%20ClipboardScrap1.pdfhttp://c/Users/280843/AppData/Local/Adobe/InDesign/Version%207.5/en_US/Caches/InDesign%20ClipboardScrap1.pdfhttp://c/Users/280843/AppData/Local/Adobe/InDesign/Version%207.5/en_US/Caches/InDesign%20ClipboardScrap1.pdfhttp://www.socialsecurity.gov/applyforbenefitshttp://www.socialsecurity.gov/mystatementhttps://secure.ssa.gov/apps6z/FOLO/fo001.jsphttp://www.socialsecurity.gov/medicarecardhttp://www.socialsecurity.gov/pubshttp://www.socialsecurity.gov/pubshttp://www.socialsecurity.gov/medicarecardhttps://secure.ssa.gov/apps6z/FOLO/fo001.jsphttp://www.socialsecurity.gov/mystatementhttp://www.socialsecurity.gov/applyforbenefitshttp://c/Users/280843/AppData/Local/Adobe/InDesign/Version%207.5/en_US/Caches/InDesign%20ClipboardScrap1.pdfhttp://c/Users/280843/AppData/Local/Adobe/InDesign/Version%207.5/en_US/Caches/InDesign%20ClipboardScrap1.pdf


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Whats Inside

Social Security and your retirement plans 4

Your retirement beneits 4

Family beneits 8

What you need to know when youare eligible or retirement beneits 11

A word about Medicare 16


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Social Security and your retirement plans

Social Security is part o the retirement plan o almostevery American worker. I you are among the 96 percent oworkers who are covered under Social Security, you should

know how the system works and what you should receiverom Social Security when you retire. This booklet explainshow you qualiy or Social Security benefts, how yourearnings and age can aect your benefts, what you shouldthink about in deciding when to retire and why you shouldnot rely only on Social Security or your retirement income.

This booklet provides basic inormation on Social

Security retirement benefts and is not intended to answerall questions. For specifc inormation about your situation,you should talk with a Social Security representative.

Your retirement benefts

How do you qualiy or retirement benefts?

When you work and pay Social Security taxes, you earncredits toward Social Security benefts.

The number o credits you need to get retirement beneftsdepends on when you were born. I you were born in 1929or later, you need 40 credits (10 years o work).

I you stop working beore you have enough credits toqualiy or benefts, the credits will remain on your Social

Security record. I you return to work later on, you canadd more credits so that you qualiy. We cannot pay anyretirement benefts until you have the required numbero credits.


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How much will your retirement beneft be?Your beneft payment is based on how much you earned

during your working career. Higher lietime earnings resultin higher benefts. I there were some years when you did

not work or had low earnings, your beneft amount may belower than i you had worked steadily.

Your beneft payment also is aected by the age at whichyou decide to retire. I you retire at age 62 (the earliestpossible retirement age or Social Security), your beneftwill be lower than i you wait until later to retire. This isexplained in more detail on pages 6-8.

NOTE: I you are a worker age 60 or older who is notreceiving Social Security benefts, you receive a SocialSecurity Statement every year which summarizes yourearnings. Workers turning age 25 will receive a one-timeonlyStatement in the mail. I you are a worker age 18 orolder, you can get a Statement online. It can be a valuabletool to help you plan a secure fnancial uture. It provides

you with a record o your earnings and gives estimates owhat your Social Security benefts would be at dierentretirement ages. It also gives an estimate o the disabilitybenefts you could receive i you become severely disabledbeore retirement, as well as estimates o the survivorsbenefts Social Security would provide your spouse andeligible amily members when you die. To create anaccount online to review your Statement, visit our websiteat www.socialsecurity.gov/mystatement.

You can get retirement beneft estimatesYou can use the online Retirement Estimator to

get immediate and personalized retirement beneftestimates to help you plan or your retirement. The onlineRetirement Estimator is a convenient, secure and quickfnancial planning tool, because it eliminates the needto manually key in years o earnings inormation. Theestimator also will let you create what i scenarios.
http://www.socialsecurity.gov/mystatementhttp://www.socialsecurity.gov/mystatement


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You can, or example, change your stop work dates orexpected uture earnings to create and compare dierentretirement options.

For more inormation, ask or Online RetirementEstimator (Publication No. 05-10510) or How To Use TheOnline Retirement Estimator (Publication No. 05-10511) orvisit our website atwww.socialsecurity.gov/estimator.

Full retirement ageI you were born in 1944 or earlier, you are already eligible

or your ull Social Security beneft. I you were born rom1943 to 1960, the age at which ull retirement benefts are

payable increases gradually to age 67. The ollowing chartlists the ull retirement age by year o birth.

Age to receive ull Social Security benefts

Year of birth Full retirement age

1943-1954 66

1955 66 and 2 months





1960 and later 67NOTE: People who were born on January 1 o any yearshould reer to the previous year.

Early retirementYou can get Social Security retirement benefts as early

as age 62. However, you will receive a reduced beneft i

you retire beore your ull retirement age. For example, iyou retire at age 62, your beneft would be about 25 percentlower than what it would be i you waited until you reachull retirement age.
http://www.socialsecurity.gov/pubs/10510.htmlhttp://www.socialsecurity.gov/pubs/10510.htmlhttp://www.socialsecurity.gov/pubs/10510.htmlhttp://www.socialsecurity.gov/pubs/10510.htmlhttp://www.socialsecurity.gov/pubs/10510.htmlhttp://www.socialsecurity.gov/pubs/10511.htmlhttp://www.socialsecurity.gov/pubs/10511.htmlhttp://www.socialsecurity.gov/estimatorhttp://www.socialsecurity.gov/estimatorhttp://www.socialsecurity.gov/estimatorhttp://www.socialsecurity.gov/estimatorhttp://www.socialsecurity.gov/pubs/10511.htmlhttp://www.socialsecurity.gov/pubs/10510.html


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Some people stop working beore age 62. But i they do,the years with no earnings will probably mean a lowerSocial Security beneft when they retire.

NOTE: Sometimes health problems orce people to retire

early. I you cannot work because o health problems, youshould consider applying or Social Security disabilitybenefts. The amount o the disability beneft is thesame as a ull, unreduced retirement beneft. I you are

receiving Social Security disability benefts when youreach ull retirement age, those benefts will be convertedto retirement benefts. For more inormation, ask orDisability Benefts (Publication No. 05-10029).

Delayed retirementYou may choose to keep working even beyond your ull

retirement age. I you do, you can increase your utureSocial Security benefts in two ways.

Each additional year you work adds another year o

earnings to your Social Security record. Higher lietimeearnings may mean higher benefts when you retire.

Also, your beneft will increase automatically by acertain percentage rom the time you reach your ullretirement age until you start receiving your benefts oruntil you reach age 70. The percentage varies depending onyour year o birth. For example, i you were born in 1943 or

later, we will add 8 percent per year to your beneft or eachyear that you delay signing up or Social Security beyondyour ull retirement age.

NOTE: I you decide to delay your retirement, be sureto sign up for Medicare at age 65. In some circumstances,medical insurance costs more i you delay applying or it.Other inormation about Medicare is on pages 16-17.

Deciding when to retireChoosing when to retire is an important but personal

decision. Regardless o the age you choose to retire, it is agood idea to contact Social Security in advance to learn the
http://www.socialsecurity.gov/pubs/10029.htmlhttp://www.socialsecurity.gov/pubs/10029.html


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available options and make an inormed decision. In somecases, your choice o a retirement month could mean higherbeneft payments or you and your amily.

In deciding when to retire, it is important to rememberthat fnancial experts say you will need 70-80 percento your preretirement income to have a comortableretirement. Since Social Security replaces only about 40percent o preretirement income or the average worker, it isimportant to have pensions, savings and investments.

You should apply or benefts about three months beorethe date you want your benefts to start. I you are not quiteready to retire, but are thinking about doing so in the nearuture, you may want to visit Social Securitys website touse our convenient and inormative retirement planner atwww.socialsecurity.gov/retire.

Retirement benefts or widows and widowersWidows and widowers can begin receiving Social

Security benefts at age 60, or at age 50 i they are disabled.

And they can take a reduced beneft on one record and laterswitch to a ull beneft on the other record. For example,a woman could take a reduced widows beneft at 60 or62 and then switch to her ull (100 percent) retirementbeneft when she reaches ull retirement age. The rules varydepending on the situation, so you should talk to a SocialSecurity representative about the options available to you.

Family benefts

Benefts or amily membersI you are getting Social Security retirement benefts,

some members o your amily also can receive benefts,including:

Spouses who are age 62 or older; Spouses who are younger than 62, i they are taking care

o a child entitled on your record who is younger than age16 or disabled;
http://www.socialsecurity.gov/retirehttp://www.socialsecurity.gov/retire


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Former spouses, i they are age 62 or older (see Beneftsor a divorced spouse on page 11);

Children up to age 18, or up to 19 i they are ull-time students who have not yet graduated rom highschool; and

Disabled children, even i they are age 18 or older.

I you become the parent o a child (including anadopted child) ater you begin receiving benefts, let usknow about the child so we can decide i the child iseligible or benefts.

NOTE: Childrens benefts are available only to

unmarried children. However, in certain situations,benefts are payable to a disabled child who marriessomeone who also has been disabled since childhood.

Spouses beneftsA spouse who has not worked or who has low earnings

can be entitled to as much as one-hal o the retired

workers ull beneft. I you are eligible or both your ownretirement benefts and or benefts as a spouse, we alwayspay your own benefts frst. I your benefts as a spouseare higher than your retirement benefts, you will get acombination o benefts equaling the higher spouse beneft.

I you have reached your ull retirement age, and areeligible or a spouses or ex-spouses beneft and your own

retirement beneft, you may choose to receive only spousesbenefts and continue accruing delayed retirement creditson your own Social Security record. You then may fle orbenefts later and receive a higher monthly beneft based onthe eect o delayed retirement credits.

I you are receiving a pension based on work where youdid not pay Social Security taxes, your spouses beneft may

be reduced. Additional inormation on pensions rom worknot covered by Social Security can be ound on page 15 othis publication.


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I spouses want to get Social Security retirement beneftsbeore they reach ull retirement age, the amount o thebeneft is reduced. The amount o reduction depends onwhen the person reaches ull retirement age.

For example:

I ull retirement age is 65, a spouse can get 37.5 percento the workers unreduced beneft at age 62;

I ull retirement age is 66, a spouse can get 35 percent othe workers unreduced beneft at age 62;

I ull retirement age is 67, a spouse can get 32.5 percento the workers unreduced beneft at age 62.

The amount o the beneft increases at later ages up tothe maximum o 50 percent at ull retirement age. I ullretirement age is other than those shown here the amounto the beneft will all between 32.5 percent and 37.5percent at age 62.

However, i your spouse is taking care o a child who isunder age 16 or disabled and gets Social Security benefts on

your record, your spouse gets ull benefts, regardless o age.Here is an example:

Mary Ann qualifes or a retirement beneft o $250 anda spouses beneft o $400. At her ull retirement age, shewill receive her own $250 retirement beneft, and we willadd $150 rom her spouses beneft, or a total o $400. I shetakes her retirement beneft beore her ull retirement age,

both amounts will be reduced.NOTE: Your current spouse cannot receive spouses

benefts until you fle or retirement benefts. However, iyou are ull retirement age, you can apply or retirementbenefts and then request to have payments suspended.That way, your spouse can receive a spouses beneft and

you can earn delayed retirement credits until age 70. Only

one spouse can apply or spouses only benefts.

See comments below.

It seems to me that the spousal benefit is not a "retirement" benefit, so thata spouse, if working, can continue to do so without being penalized. Whenyou take retirement benefits (and not spousal benefits) prior to your fullretirement age, you are penalized heavily. Once you reach full retirementage, you can work as much as you want without penalty. (don't trust me)


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Maximum amily beneftsI you have children eligible or Social Security, each

will receive up to one-hal o your ull beneft. But thereis a limit to the amount o money that can be paid to you

and your amilyusually 150-180 percent o your ownbeneft payment. I the total benefts due to your spouseand children are more than this limit, their benefts will bereduced. Your beneft will not be aected.

Benefts or a divorced spouseYour divorced spouse can get benefts on your Social

Security record i the marriage lasted at least 10 years. Yourdivorced spouse must be 62 or older and unmarried.

The amount o benefts he or she gets has no eect on theamount o benefts you or your current spouse can get.

Also, i you and your ex-spouse have been divorced or atleast two years and you and your ex-spouse are at least 62,he or she can get benefts even i you are not retired.

What you need to know when youare eligible or retirement benefts

How do you sign up or Social Security?You can apply or retirement benefts online at

www.socialsecurity.govor you can call our toll-ree

number, 1-800-772-1213. Or you can make an appointmentto visit any Social Security ofce to apply in person.Depending on your circumstances, you will need some

or all o the documents listed below. But do not delayapplying or benefts because you do not have all theinormation. I you do not have a document you need, wecan help you get it.
http://www.socialsecurity.gov/http://www.socialsecurity.gov/


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Inormation needed:

Your Social Security number;

Your birth certifcate;

Your W-2 orms or sel-employment tax return or

last year; Your military discharge papers i you had military

service;

Your spouses birth certifcate and Social Securitynumber i he or she is applying or benefts;

Childrens birth certifcates and Social Security numbers,i you are applying or childrens benefts;

Proo o U.S. citizenship or lawul alien status i you (or aspouse or child applying or benefts) were not born in theUnited States; and

The name o your fnancial institution, the routingnumber and your account number, so your beneftscan be deposited directly into your account. I you donot have an account at a fnancial institution or preer

receiving your benefts on a prepaid debit card you canreceive a Direct Express card. For more inormation,visit www.GoDirect.org.

You will need to submit original documents or copiescertifed by the issuing ofce. You can mail or bring themto Social Security. We will make photocopies and returnyour documents.

Right to appealI you disagree with a decision made on your claim, you

can appeal it. For an explanation o the steps you can take,ask or The Appeals Process (Publication No. 05-10041).

You can handle your own appeal with ree help romSocial Security or you can choose to have a representative

help you. We can give you inormation about organizationsthat can help you fnd a representative. For moreinormation about selecting a representative, ask or YourRight To Representation (Publication No. 05-10075).
http://www.godirect.org/http://www.socialsecurity.gov/pubs/10041.htmlhttp://www.socialsecurity.gov/pubs/10041.htmlhttp://www.socialsecurity.gov/pubs/10075.htmlhttp://www.socialsecurity.gov/pubs/10075.htmlhttp://www.socialsecurity.gov/pubs/10075.htmlhttp://www.socialsecurity.gov/pubs/10075.htmlhttp://www.socialsecurity.gov/pubs/10075.htmlhttp://www.socialsecurity.gov/pubs/10041.htmlhttp://www.godirect.org/


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I you work and get benefts at the same timeYou can continue to work and still receive retirement

benefts. Your earnings in (or ater) the month you reachyour ull retirement age will not reduce your Social

Security benefts. However, your benefts will be reduced iyour earnings exceed certain limits or the months beoreyou reach your ull retirement age. (See the chart on page 6to fnd your ull retirement age.)

Here is how it works:

I you are younger than ull retirement age, $1 in beneftswill be deducted or each $2 in earnings you have above the

annual limit.In the year you reach your ull retirement age, yourbenefts will be reduced $1 or every $3 you earn over anannual limit until the month you reach ull retirement age.Once you reach ull retirement age, you can keep working,and your Social Security beneft will not be reduced nomatter how much you earn.

I, during the year, your earnings are higher or lower thanyou estimated, let us know as soon as possible so we canadjust your benefts.

I you want more inormation on how earnings aectyour retirement beneft, ask or How Work Aects YourBenefts (Publication No. 05-10069), which has currentannual and monthly earnings limits.

A special monthly ruleA special rule applies to your earnings or one year,

usually your frst year o retirement. Under this rule,you can receive a ull Social Security check or anymonth you earn under a certain limit, regardless o youryearly earnings.

I you want more inormation on how earnings aectyour retirement beneft, ask or How Work Aects YourBenefts (Publication No. 05-10069), which has currentannual and monthly earnings limits.
http://www.socialsecurity.gov/pubs/10069.htmlhttp://www.socialsecurity.gov/pubs/10069.htmlhttp://www.socialsecurity.gov/pubs/10069.htmlhttp://www.socialsecurity.gov/pubs/10069.htmlhttp://www.socialsecurity.gov/pubs/10069.htmlhttp://www.socialsecurity.gov/pubs/10069.htmlhttp://www.socialsecurity.gov/pubs/10069.htmlhttp://www.socialsecurity.gov/pubs/10069.htmlhttp://www.socialsecurity.gov/pubs/10069.htmlhttp://www.socialsecurity.gov/pubs/10069.html


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Your benefts may be taxableAbout one-third o people who get Social Security have to

pay income taxes on their benefts.

I you fle a ederal tax return as an individual, and

your combined income* is between $25,000 and $34,000,you may have to pay taxes on up to 50 percent o yourSocial Security benefts. I your combined income*is more than $34,000, up to 85 percent o your SocialSecurity benefts is subject to income tax.

I you fle a joint return, you may have to pay taxes on50 percent o your benefts i you and your spouse have a

combined income* that is between $32,000 and $44,000.I your combined income* is more than $44,000, up to85 percent o your Social Security benefts is subject toincome tax.

I you are married and fle a separate return, you probablywill pay taxes on your benefts.

At the end o each year, we will mail you a Social

Security Beneft Statement (Form SSA-1099) showing theamount o benefts you received. You can use this statementwhen you complete your ederal income tax return to fndout i you have to pay taxes on your benefts.

Although you are not required to have ederal taxeswithheld, you may fnd it easier than paying quarterlyestimated tax payments.

For more inormation, call the Internal RevenueServices toll-ree telephone number, 1-800-829-3676,to ask or Publication 554, Tax Guide or Seniors, andPublication 915, Social Security And Equivalent RailroadRetirement Benefts.

* On the 1040 tax return, your combined income is

the sum o your adjusted gross income plus nontaxableinterest plus one-hal o your Social Security benefts.
http://www.irs.gov/publications/p554/index.htmlhttp://www.irs.gov/publications/p915/index.htmlhttp://www.irs.gov/publications/p915/index.htmlhttp://www.irs.gov/publications/p915/index.htmlhttp://www.irs.gov/publications/p915/index.htmlhttp://www.irs.gov/publications/p915/index.htmlhttp://www.irs.gov/publications/p554/index.html


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Pensions rom work not covered by Social SecurityI you get a pension rom work where you paid Social

Security taxes, that pension will not aect your SocialSecurity benefts. However, i you get a pension rom work

that was not covered by Social Securityor example,the ederal civil service, some state or local governmentemployment or work in a oreign country your SocialSecurity beneft may be reduced.

For more inormation, ask or Government PensionOset (Publication No. 05-10007), or government workerswho may be eligible or Social Security benefts on theearnings record o a spouse; and Windall EliminationProvision (Publication No. 05-10045), or people whoworked in another country or government workers who alsoare eligible or their own Social Security benefts.

Leaving the United StatesI you are a U.S. citizen, you can travel to or live in most

oreign countries without aecting your Social Security

benefts. There are, however, a ew countries where wecannot send Social Security payments. These countriesare Cambodia, Cuba, North Korea, Vietnam and areas thatwere in the ormer Soviet Union (other than Armenia,Estonia, Latvia, Lithuania and Russia). However, exceptionscan be made or certain eligible benefciaries in countriesother than Cuba and North Korea. For more inormation

about these exceptions, please contact your local SocialSecurity ofce.

I you work outside the United States, dierent rulesapply in determining i you can get benefts.

For more inormation, ask or Your Payments While YouAre Outside The United States (Publication No. 05-10137).
http://www.socialsecurity.gov/pubs/10007.htmlhttp://www.socialsecurity.gov/pubs/10007.htmlhttp://www.socialsecurity.gov/pubs/10007.htmlhttp://www.socialsecurity.gov/pubs/10007.htmlhttp://www.socialsecurity.gov/pubs/10045.htmlhttp://www.socialsecurity.gov/pubs/10045.htmlhttp://www.socialsecurity.gov/pubs/10045.htmlhttp://www.socialsecurity.gov/pubs/10045.htmlhttp://www.socialsecurity.gov/pubs/10137.htmlhttp://www.socialsecurity.gov/pubs/10137.htmlhttp://www.socialsecurity.gov/pubs/10137.htmlhttp://www.socialsecurity.gov/pubs/10137.htmlhttp://www.socialsecurity.gov/pubs/10137.htmlhttp://www.socialsecurity.gov/pubs/10045.htmlhttp://www.socialsecurity.gov/pubs/10007.html


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A word about Medicare

Medicare is a health insurance plan or people who areage 65 or older. People who are disabled or have permanentkidney ailure can get Medicare at any age.

Medicare has our parts Hospital insurance (Part A) helps pay or inpatient

hospital care and certain ollow-up services.

Medical insurance (Part B) helps pay or doctors services,outpatient hospital care and other medical services.

Medicare Advantage plans (Part C) are available in many

areas. People with Medicare Parts A and B can choose toreceive all o their health care services through a providerorganization under Part C.

Prescription drug coverage (Part D) helps pay ormedications doctors prescribe or treatment.

I you are already getting Social Security benefts whenyou turn 65, your Medicare hospital insurance (Part

A) starts automatically. I you live in the United Statesyou will usually be enrolled in medical insurance (PartB) automatically. Residents o Puerto Rico or oreigncountries will not receive Part B automatically. They mustelect this beneft.

I you are not already getting Social Security, you shouldcontact us about three months beore your 65th birthday to

sign up or Medicare. You can sign up or Medicare even iyou do not plan to retire at age 65. For more inormation,ask or Medicare (Publication No. 05-10043).
http://www.socialsecurity.gov/pubs/10043.htmlhttp://www.socialsecurity.gov/pubs/10043.htmlhttp://www.socialsecurity.gov/pubs/10043.html


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Help with Medicare expenses orpeople with low income

I you have a low income and ew resources, your statemay pay your Medicare premiums and, in some cases, other

out-o-pocket medical expenses, such as deductibles andcoinsurance.

Only your state can decide whether you qualiy or helprom the Medicare Savings Programs. To fnd out, contactyour state or local medical assistance (Medicaid) agency,social services or welare ofce.

Extra Help with Medicare prescription costsI you have limited income (tied to the ederal povertylevel) and limited resources, you may qualiy or Extra Helpto pay or your prescription drugs under Medicare Part D.Social Securitys role in this program is to:

Help you understand how you may qualiy;

Help you complete the extra help application; and

Process your application.I you apply or Extra Help, we also will start an

application or the Medicare Savings Programs, unlessyou tell us not to. To see i you qualiy or to apply, callSocial Securitys toll-ree number or visit our website atwww.socialsecurity.gov/extrahelp.
http://www.socialsecurity.gov/extrahelphttp://www.socialsecurity.gov/extrahelp


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Notes


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Notes


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P i t d l d

Social Security AdministrationSSA Publication No. 05-10035ICN 457500Unit o Issue - HD (one hundred)July 2012 (Recycle prior editions)

social security guide

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