Retirement Insurance 1935 Survivors Insurance 1939 History - Social Security’s Programs Disability Insurance 1956

MedicareSupplemental Security Income Other Programs

A Foundation for Planning Your Future

3-Legged Stool of Retirement Security

The Social Security Statement The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits The Statement provides earnings for you to check for accuracy The Statement provides earnings for you to check for accuracy

The Social Security Statement

Payments to Beneficiaries Workers & Employers Who Pays for Social Security?

You Need to Work to Earn Social Security Credits Each $ 970 in earnings gives you one credit Each $ 970 in earnings gives you one credit 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.

Your Age When You Retire Affects Your Benefits If You’re A Worker and Retire: At age 62, you get less money permanently At your full retirement age, you get your full benefit You 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 Spouse Your Child At age 62 At any age if caring for child under 16 or disabled Divorced spouses may qualify At age 62 At any age if caring for child under 16 or disabled Divorced 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 Age

How Social Security Determines Your Benefit Social Security benefits are based on earnings Step 1 – Your wages are adjusted for inflation Step 2 – Find the average of your 35 highest earnings years Step 3 – Result is “average indexed monthly earnings”

What You’ll Get at Full Retirement Age % of earnings Low Earner Average Earner High Earner 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:

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:

You 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? 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 Not married under age 18 (under 19 if still in high school) Not married and disabled before age 22 If Your Child Is: Widow or Widower:

Parents Other Survivors Benefits 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 children

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? Worker At 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 for child under 16 or disabled At any age if caring for child under 16 or disabled Divorced spouses may qualify Spouse

Who Can Get Disability Benefits? Child 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 22 Not 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?

Medicare Coverage Covers most inpatient hospital expenses Deductible $ 952 Covers 80% doctor bills & other outpatient medical expenses after 1 st $ 124 in approved charges Monthly Premium $ Part A (Hospital Insurance) Part B (Supplementary Medical Insurance)

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 Information MEDICARE MEDICARE

What Should You Do to Prepare for Your Retirement? TTY TTY Call the year BEFORE you retire All information can be obtained by phone Call the year BEFORE you retire All information can be obtained by phone

What Will You Need When Applying for Your Social Security Benefits? What Will You Need When Applying for Your Social Security Benefits?

America Is Getting Older U.S. Population Age 65 & Older America Is Getting Older U.S. Population Age 65 & Older 11 Million 1946 (8% of total population) 36 Million 2004 (13% of total population) 69 Million 2030 (20% of total population)

Children Per Woman U.S. Birth Rate

The Number of Workers Per Beneficiary Is Decreasing Why Are Changes Needed?

In 2017, Social Security Will Begin Paying More in Benefits Than is Collected in Taxes In 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

Social Security’s Online Services Retirement & Disability applications Retirement/Survivors/Disability Planner Retirement/Survivors/Disability Planner Benefit Calculators Medicare Card Replacements Request a Statement Request a Benefit Verification Letter Change of Address

Retirement Planner

Visit Our Website or Call! -or TTY