Social Security & You

1. Social Security & You Presented by: Warren Coble Social Security Benefit Counselor

2. Benefits Nationwide • $1,261.00 per month retiree average • Nationwide – 62,015,000 recipients in 01/2013 • 10,000 per DAY turning 62 years old, will continue for 17 more years

3. How Do You Qualify? • Page 4 • Insured status = work • 10 years or 40 “credits” or quarters of coverage • Quarter of coverage • 2013 - 1 qc for each $1,160 earned • 4 max per year = $4,640.00

4. Retirement Benefits • Attain minimum age = 62 • Minimum work credit = 10 years • File application • Current work within limits

5. How Much Will You Receive? • Retirement, survivors, and disability benefits all derive from one computation: The primary insurance amount, or “PIA” • See handout of computation • Get estimates ahead of time(page 5)

6. Full Retirement Age Is Not The Same As Age 65!!! • 1943 - 1954 - age 66 • 1955+ – 2 month increase to age 67 • See chart on page 6 • Did not increase the age 62 filing, only full retirement age, but decreases the age 62 rate

7. Retirement Benefit Rates • Depends on number of months prior to full retirement age • Age 62 = 75% • Age 63 = 80% • Age 64 = 86.6% • Age 65 = 93.3% • Increases monthly toward Full Retirement Age • 2013 maximum - $2,533.00

8. Special Note About Age 62 • You must be age 62 throughout the entire month!! • SSA determines that you attain the day prior • Born on 1st or 2nd of month can be paid for month of actual age 62 • Otherwise, month after age 62 • Benefits not paid for month of death

9. Delayed Retirement • See page 7 • Between 66 – 70 • Increases benefit 8% per full year of delayed receipt of benefits – total 132% • Delay also applies to survivor benefits

10. Depends on personal choice Finances Insurance Job stress Job satisfaction Health Family longevity Time to do other things See handout Depends on work Within limits Advantageous Depends on age Late birth in year FRA- check ahead of time When To File For Retirement

11. Benefits For Family • Spouse 62+ (1 year marriage) • Spouse under 62 caring for child under 16 or disabled • Divorced spouses (10 years) • Children – under 18, 18-19 in high school, or disabled before 22 • Widows and widowers

12. Benefits for Family There is a family maximum, usually 150-180% of the worker’s benefit Does not affect worker’s benefit See page 11

13. Spousal Benefits • See page 9 of retirement book • Under FRA (66), must receive own benefit first • Must be age 66 to delay filing and claim spousal benefits only to delay for extra credit

14. Survivor Benefits • Widow(er)s – Age 60 (50 if disabled) Amount = 71 ½% of Primary Amount • Children: Under 18 Age 18-19 until finish high school Disabled before age 22 Amount = 75% of PIA Subject to Family Max

15. Survivor Benefits, Cont. • Surviving spouse has option of choosing between own retirement (if already 62) or survivor benefits, and can choose to receive one benefit and delay the other until full retirement age or even age 70 for delayed retirement credits.

16. Signing Up For Benefits • About three months prior to time you want your checks to start • Warren Coble & Associates can assist • Internet - www.socialsecurity.gov • By toll-free phone • Local office interview by phone or in-person • No written application

17. Retirement Documentation Required • Proof of age- birth certificate • Proof of earnings - W-2 form • Direct deposit information • Military service (prior to 1968) • Marital history • Earnings decline if self-employed or own business

18. Signing Up For Benefits • Regardless of method used, a letter (notice of award) will be sent explaining benefit rights • You can file an appeal if you disagree with a decision • Always Understand The “Why”

19. Work limitationsunder full retirement age (FRA) limitations • 2013 = $15,120 • Basic rule: • Earnings under $15,120.00 allow payment of all benefits for 2013 • Earnings over $15,120.00 require withholding $1 in benefits for each $2 over $15,120.00 • Special monthly rule $1,260.00 • Earnings count from January 1

20. 2013 Excess charged at $1 for $3 ratio See handout – how work affects benefits $40,080 Only earnings up to month of FRA are included Work Limitations - Full Retirement Age

21. Earnings Types • Countable: • Wages from a job • Net earnings from self-employment • Non-countable: • Interest • Dividends • Capital gains • Rentals • Pension/annuity • 401 k • VA benefits

22. Taxation Of Benefits • Total income • $25k - $34k (individual) • $32k - $44k (joint) • 50 % threshold • If including 50% of SSA benefit puts you in the ranges shown, 50% of benefits subject to taxation

23. Taxation of Benefits • Total income • $34k up (individual) • $44k up (joint) • If including 50% of social security benefit puts total income over ranges shown, 85% of benefit is taxable • Consult tax advisor for specifics

24. Non-covered Pensions • Affects the worker through windfall elimination provision • Teacher/government retirement from other states • Federal Civil Service (FERS not counted) • Affects spouses through government pension offset

25. What Warren Coble & Associates Can Do For Clients • Pre-retirement planning • Provide personalized service • Application assistance • Disability applications and appeals • Medicare/Supplement/Part D guidance • Senior services referrals • Caregiver referrals/guidance

26. Warren Coble & Associates, Inc.Certified Senior AdvisorBenefit Counselors3081 Maness Coble Dr.Asheboro NC 27205336 879-0848