1. 1 1

2. 2 2 3-Legged Stool of Retirement Security

3. 3 3 The Social Security Statement  The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits  The Statement allows you to check your earnings history for accuracy  The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits  The Statement allows you to check your earnings history for accuracy

4. 4 4 Full Retirement Age Year of BirthFull Retirement Age 193765 193865 & 2 months 193965 & 4 months 194065 & 6 months 194165 & 8 months 194265 & 10 months 1943 – 195466 195566 & 2 months 195666 & 4 months 195766 & 6 months 195866 & 8 months 195966 & 10 months 1960 & later67 Year of BirthFull Retirement Age 193765 193865 & 2 months 193965 & 4 months 194065 & 6 months 194165 & 8 months 194265 & 10 months 1943 – 195466 195566 & 2 months 195666 & 4 months 195766 & 6 months 195866 & 8 months 195966 & 10 months 1960 & later67

5. 5 5 Your Age When You Retire 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

6. 6 6 In Addition to the Retiree, Who Else Can Get Benefits? 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 Your Child  Not married under 18 (under 19 if still in high school)  Not married and disabled before age 22

7. 7 7 How Social Security Determines Your Benefit Social Security benefits are based on earnings Step 1Your wages are adjusted for changes in wage levels Step 2Find the monthly average of your 35 highest earnings years Step 3Result is “average indexed monthly earnings”

8. 8 8 If your average monthly earnings are= $ 5,200 Then your monthly benefit would be= $ 1,871 Average Monthly Earnings $ 5,200 90% of First $ 680= $ 612 32% of Earnings over $ 680 through $ 4,100 $ 3,420= $ 1,094 ( $ 4,100- $ 680= $ 3,420) 15% of Earnings over $ 4,100 $ 1,100= $ 165 ( $ 5,200- $ 4,100= $ 1,100) $ 5,200 $ 1,871 If your average monthly earnings are= $ 5,200 Then your monthly benefit would be= $ 1,871 Average Monthly Earnings $ 5,200 90% of First $ 680= $ 612 32% of Earnings over $ 680 through $ 4,100 $ 3,420= $ 1,094 ( $ 4,100- $ 680= $ 3,420) 15% of Earnings over $ 4,100 $ 1,100= $ 165 ( $ 5,200- $ 4,100= $ 1,100) $ 5,200 $ 1,871 Retirement Benefit Computation Example

9. 9 9 You Can Work & Still Receive Benefits You CanIf You Make More, If You AreMake Up ToSome Benefits Will Be Withheld Under Full Retirement Age $ 14,160/yr. ( $ 1,180/mo.) $ 1 for every $ 2 The Year Full Retirement Age is Reached $ 37,680/yr. ($3,140/mo.) $ 1 for every $ 3 Month of Full Retirement Age and AboveNo LimitNo Limit You CanIf You Make More, If You AreMake Up ToSome Benefits Will Be Withheld Under Full Retirement Age $ 14,160/yr. ( $ 1,180/mo.) $ 1 for every $ 2 The Year Full Retirement Age is Reached $ 37,680/yr. ($3,140/mo.) $ 1 for every $ 3 Month of Full Retirement Age and AboveNo LimitNo Limit

10. 10 What Will You Need When Applying for Your Social Security Benefits? What Will You Need When Applying for Your Social Security Benefits? Social Security number for each applicant Proof of age (birth certificate) Latest W-2 or self-employment tax return Earnings estimate Bank information for direct deposit Information about marriages/divorces Information about military or railroad service Social Security number for each applicant Proof of age (birth certificate) Latest W-2 or self-employment tax return Earnings estimate Bank information for direct deposit Information about marriages/divorces Information about military or railroad service

11. 11 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 Your Child if:  Not married under age 18 (under 19 if still in high school)  Not married and disabled before age 22 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 Your Child if:  Not married under age 18 (under 19 if still in high school)  Not married and disabled before age 22

12. 12 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.

13. 13 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?

14. 14 When Can I Sign Up for Medicare? Medicare Enrollment Periods:  Initial - at age 65  Special - if still working  General - January-March

15. 15 Medicare Coverage Part AHospital Insurance  Covers most inpatient hospital expenses. 2011 Deductible $ 1,132.00 Part BSupplementary Medical Insurance  Covers 80% doctor bills & other outpatient medical expenses after 1 st $ 162 in approved charges. 2011 Monthly Premium $ 115.40 Part DMedicare Prescription Drug Plan  Covers a major portion of prescription drug costs for Medicare beneficiaries. Part AHospital Insurance  Covers most inpatient hospital expenses. 2011 Deductible $ 1,132.00 Part BSupplementary Medical Insurance  Covers 80% doctor bills & other outpatient medical expenses after 1 st $ 162 in approved charges. 2011 Monthly Premium $ 115.40 Part DMedicare Prescription Drug Plan  Covers a major portion of prescription drug costs for Medicare beneficiaries.

16. 16 For More Information 1-800-MEDICARE (1-800-633-4227) www.medicare.gov 1-800-MEDICARE (1-800-633-4227) www.medicare.gov

17. 17 What Should You Do to Prepare for Your Retirement? 1-800-772-1213 TTY 1-800-325-0778 1-800-772-1213 TTY 1-800-325-0778 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 www.socialsecurity.gov

18. 18 Find Out About Your Social Security Request Your Social Security Statement for: Estimates of benefits at different retirement ages Different wage estimates www.socialsecurity.gov Request Your Social Security Statement for: Estimates of benefits at different retirement ages Different wage estimates www.socialsecurity.gov

19. 19 Visit Our Website or Call! www.socialsecurity.gov -or- 1-800-772-1213 TTY 1-800-325-0778

20. 20 Social Security’s Online Services  Retirement & Disability Applications  Retirement/Survivors/Disability Planner  Medicare Card Replacements  Request a Statement  Request a Benefit Verification Letter  Change of Address  Retirement & Disability Applications  Retirement/Survivors/Disability Planner  Medicare Card Replacements  Request a Statement  Request a Benefit Verification Letter  Change of Address