What Every Financial Educator Should Know About Social Security Benefits

How Do You Qualify for Retirement Benefits? Example: To earn 4 credits in 2015, you must earn at least $4, Earning 40 credits (10 years of work) throughout your working life will qualify you for a retirement benefit.  You need to work to earn Social Security “credits”  Each $1,220 in earnings gives you one credit  You can earn a maximum of 4 credits per year

How Social Security Determines Your Benefit  Step 1 -Your wages are adjusted for changes in wage over time  Step 2 -Find the monthly average of your 35 highest earnings years  Step 3 -Result is “average indexed monthly earnings” Social Security benefits are based on earnings

Spouse’s Benefit Computation  Benefit is 50% of worker’s unreduced benefit  Reduction for early retirement  If spouse’s own benefit is less than 50% of the worker’s, the benefits are combined  Does not reduce payment to worker

Full Retirement Age Year of BirthFull Retirement Age 1937 or earlier & 2 months & 4 months & 6 months & 8 months & 10 months 1943 – & 2 months & 4 months & 6 months & 8 months & 10 months 1960 or later67

Deciding When To Retire If You’re A Worker and Retire:  At age 62, you get a lower monthly payment  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

In Addition to the Retiree, Who Else Can Get Benefits? Your Spouse  Age 62 or older  At any age, if caring for a child under age 16 or disabled Your Child  Not married under 18 (under 19 if still in high school)  Not married and disabled before age 22

A person can receive benefits as a divorced spouse on a former spouse’s Social Security record if he or she:  Was married to the former spouse for at least 10 years;  Is at least age 62 years old;  Is unmarried; and  Is not entitled to a higher Social Security benefit on his or her own record.

Retirement Strategies File and Suspend Upon reaching full retirement, an individual may claim his/her retirement benefit and then immediately suspend payment. This will allow the individual to earn delayed retirement credits up to 8% a year until age 70 and the individual’s spouse and children to receive benefits while his or her benefit is suspended. For more information, visit our Retirement Planner: Suspending Retirement Benefit Payments

Retirement Strategies Claim Now, Claim More Later At full retirement age, a married individual can claim a spousal benefit & then switch to his/her own retirement benefit at a later date. This builds up delayed retirement credits, which will result in a higher retirement benefit. For more information, visit our Retirement Planner: Benefits for Your Spouse

If You Change Your Mind (aka Withdrawing Your Application) If you are receiving Social Security Retirement benefits and change your mind about when they should start, you may be able to withdraw your claim within 12 months from when you became entitled to retirement benefits. Note: You are limited to one withdrawal per lifetime. For more information, visit our Retirement Planner: If You Change Your Mind Retirement Strategies

You Can Work & Still Receive Benefits 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. If You Are You Can Make Up To If You Make More, Some 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

Your Online Account... Your Control... my Social Security is an easy-to-access, easy-to-use portal to view and update some of your own Social Security information. my Social Security

Visit socialsecurity.gov/myaccount 2 1 Select: Create an Account Getting Started How to open a my Social Security account my Social Security

Provide some personal information to verify your identity. Choose a “username” and “password” to create your account. Getting Started How to open a my Social Security account 4 3 my Social Security

Retirement Estimator

Life Expectancy Calculator

 Apply online at It is the most convenient way to apply;  Call Social Security to schedule an appointment at (TTY ) to: Apply over the telephone or Apply in person at your local Social Security office How Do I Apply for Retirement Benefits?

or Call Social Security toll-free at TTY am – 7 pm Monday – Friday Automated Phone Service 24/7 Get answers online to “Frequently Asked Questions” (FAQs) about Social Security at:

Like us on Facebook Follow us on Twitter Read our blog, Social Security Matters Watch our YouTube Get Social With Social Security