Social
Security Retirement Benefits
· What is Social
Security?
Social Security refers to a
number of programs that
provide workers and their
families with some money
when their income decreases
because of retirement,
disability, or death.
· Are all workers
covered by Social Security?
No.
Certain workers in American
have not paid into the
Social Security system and
are therefore not entitled
to its benefits. Other
workers may not have a
sufficient number of years
of "covered employment"
(i.e., work credits) to
qualify for Social Security.
· How are my
retirement benefits
calculated?
The
Social Security
Administration (SSA)
calculates retirement
benefits on income earned
during a lifetime of work
under the Social Security
system. According to the SSA,
for current and future
retirees, it averages the
worker's thirty-five highest
years of earnings.
· What is the
average Social Security
retirement benefit?
According to statistics
maintained by the SSA, in
1999 more than 30 million
people received Social
Security retirement benefits
that averaged about $750 per
month.
· How do I know
what my benefit will be?
You
can check on your earnings
by contacting the SSA. It
keeps a running record of
your earnings and work
credits by tracking through
your Social Security number.
In addition, the SSA
annually mails a Personal
Earnings and Benefit
Estimate Statement to
everyone who is not
currently receiving Social
Security.
· Can I collect
more than one benefit from
Social Security?
No.
You can collect only one
type of Social Security
benefit even though you may
qualify for more. For
example, you might be
entitled to benefits based
on your retirement as well
as that of your spouse. You
can collect whichever of
these benefits is higher,
but not both.
· When can I
start collecting Social
Security?
You
can start collecting
retirement benefits from
Social Security at age 62.
If you wait to collect your
benefit, it will increase
for each year you wait up to
age 70.
· How do I
collect benefits when I turn
62?
While
you will be eligible for
benefits in the month you
turn 62, most benefits do
not begin until the
following month. To receive
benefits, you must be 62 for
the entire month. You should
file a claim with the SSA
three months before the
birthday on which you become
eligible for benefits. This
will give SSA time to
process your claim and
enable you to receive your
benefits on time. Be aware
that if you file a claim
later, you will not get
benefits retroactively for
months in which you were
eligible but before you
applied for benefits.
· How do I file
for benefits?
Contact your local Social
Security office or call the
SSA at 800-772-1213. Social
Security workers should be
able to answer general
questions about benefits and
how to obtain them. They
should be able to tell you
what paperwork must be
completed and what
documentation is required.
· Can I work and
still receive Social
Security retirement
benefits?
Yes.
Moreover, the trend is for
more and more retirees to
work at least part time. If
you have reached 65, the
full retirement age under
Social Security, you can
work and earn any amount
without losing any of your
Social Security benefit.
· If I am 62, can
I work and still receive
Social Security retirement
benefits?
Yes,
but $1 in benefits will be
deducted for each $2 you
earn above a limit which is
set annually. The limit for
2000 is $10,080. In the year
that you reach 65, $1 in
benefits will be deducted
for each $3 you earn above a
certain limit (set at
$17,000 for the year 2000).
Only the earnings you
receive before the month in
which you are sixty-five
will be subject to this
deduction. In the month you
turn 65, you will get your
full benefit without any
limit on your earnings.
· If I work and
receive Social Security
retirement benefits, will my
earnings be subject to
Social Security and Medicare
taxes?
Yes.
Your extra earnings,
however, could increase your
benefits.
· Will my Social
Security benefit be reduced
by any pension I receive?
Your
pension from work will not
affect your Social Security
benefit as long as the work
was covered by Social
Security, i.e., you paid
Social Security taxes.
· Can the SSA
assist me with my financial
planning?
No.
