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IT'S YOUR FUTURE www.socialsecurity.gov

Social Security. IT'S YOUR FUTURE www.socialsecurity.gov. Social Security. HELP YOU HELP OTHERS. History - Social Security’s Programs. 1935 Retirement Insurance. 1939 Survivors Insurance. 1956 Disability Insurance. Other Programs. 1965 Medicare. 2003 Medicare Part D.

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IT'S YOUR FUTURE www.socialsecurity.gov

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  1. Social Security IT'S YOUR FUTURE www.socialsecurity.gov

  2. Social Security HELP YOU HELP OTHERS

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

  4. Other Programs 1965 Medicare 2003 Medicare Part D

  5. A Foundation for Planning Your Future 5

  6. Who Gets Benefits from Social Security? ABOUT 53 MILLION PEOPLE 4.5 million Widows/ Widowers 8 million Disabled Workers, 2 million Dependents 2 million Children of Deceased Workers 34 million Retired Workers 3 million Dependents 4/2010

  7. Where Does the Money Come From? Social Security Trust Fund 2009 Payroll Tax 83% Trust Fund Interest 14% Taxation of Benefits 3%

  8. Are Social Security Benefits Taxed? Adjusted Gross Income Amount of SS + ½ of Annual SS benefitfederally taxable Individ. $25,000 to $33,999 50% Over $34,000 85% Couple $32,000 to $43,999 50% Over $44,000 85%

  9. 9 In 2016, Social Security Will Begin Paying More in Benefits than is Collected in Taxes

  10. 10 In 2016, Social Security Will Begin Paying More in Benefits than is Collected in Taxes At exhaustion in 2037,only about 78% of benefits could be paid.

  11. Retirement Benefits

  12. Work to Earn Social Security Credits • Each $1,120 in earnings • gives you one credit • You can earn a maximum • of 4 credits per year • Example: To earn 4 credits in 2010, you must earn at least $4,480. Earning 40 credits throughout your working life will qualify you for a retirement benefit.

  13. Full Retirement Age (FRA) Year of Birth Full Retirement Age 1937 65 1938 65 & 2 months 1939 65 & 4 months 1940 65 & 6 months 1941 65 & 8 months 1942 65 & 10 months 1943 – 1954 66 1955 66 & 2 months 1956 66 & 4 months 1957 66 & 6 months 1958 66 & 8 months 1959 66 & 10 months 1960 & later 67

  14. Your Age Affects Your Benefits • If You’re a Worker and Retire • At age 62, you get a lower monthlypayment permanently • At your full retirement age, you getyour full benefit • You get an even higher monthlypayment if you work past your fullretirement age

  15. 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 as long as the • marriage lasted 10 years & currently unmarried • Your Child • Not married under 18 (under 19 if still in high school) • Not married and disabled before age 22

  16. Spouse Benefits Example The working spouse at age 66 receives $1000.00 per month. Potentially, his/her spouse can receive up to 50% of the $1000.00 and will not lower working spouses amount. Age 66 $500.00 Age 62 $350.00

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

  18. The Social Security Statement

  19. Use the New Retirement Estimator • You can get estimates of your future Social Security retirement benefits using our new online Retirement Estimator. • No manual keying of earnings is needed • ‘What if’ scenarios are easy It’s convenient, secure and quick. www.socialsecurity.gov/estimator

  20. 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 $2 Year Full Retirement Age is Reached $37,680/yr. ($3,140/mo.) $1 for $3 Month Full Retirement Age and Above No Limit No Limit

  21. Survivor Benefits

  22. 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 - 10 years of marriage • and unmarried or remarried after age 60 or 50 disabled. • Your Child if: • Not married under age 18(under 19 if still in high school) • Not married and disabled before age 22

  23. Disability Benefits

  24. Social Security’s Disability Definition: Amedical condition preventing substantial work for at least 12 months, or expected to result in death. The determination also considers age, education & work experience.

  25. Medicare Benefits

  26. Who Can Get Medicare? 65 & older -or- Receiving Social Security disability benefits at least 24 months -or- Permanent kidney failure -or- Amyotrophic Lateral Sclerosis (ALS)

  27. Medicare Coverage • Part A Hospital Insurance • Covers most inpatient hospital expenses. 2010 Deductible $1,100 • Part B Supplementary Medical Insurance • Covers 80% doctor bills & other outpatient medical expenses after 1st$155 in approved charges. 2010 Monthly Premium $110.50 Part D Medicare Prescription Drug Plan • Covers a major portion of prescription drug costs for Medicarebeneficiaries. 2010 average Monthly Premium $31.90

  28. For More Medicare Information 1-800-MEDICARE (1-800-633-4227) TTY 1-877-486-2048 www.medicare.gov

  29. Social Security’s Online Services • Retirement & Disability Applications • Apply for Extra Help • Retirement/Survivors/Disability Planner • Request a Statement • Change of Address • Medicare Card Replacements • Request a Benefit Verification Letter • Start or Change Direct Deposit

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