|
|
|
|
RETIREMENT
Q.
Are my benefits figured on my last five years of earnings?
A. No. Retirement benefit calculations are based on your
average earnings during a lifetime of work under the Social Security
system. For most current and future retirees, we will average your
35 highest years of earnings. Years in which you have low earnings
or no earnings may be counted to bring the total years of earnings
up to 35.
Q. I stopped work at the end of last
year at age 52. I don't expect to work again before I start my Social
Security benefits when I turn 62. Will I still get the same benefit
amount you showed for age 62 on the Social Security Statement that
you recently sent me?
A. Probably not. When we averaged out your 35 highest years
of earnings to estimate your benefits on your Statement, we assumed
you would continue to work up to age 62, making the same earnings
you made last year. If, instead, you have $0 earnings each year
over the next 10 years, your average earnings will probably be less
and so will your benefit. You can use our Benefit
Calculators to see how this will affect your monthly benefit
amount.
Q. Will my retirement pension from
my job reduce the amount of my Social Security benefit?
A. If your pension is from work where you also paid Social
Security taxes, it will not affect your Social Security benefit.
However, pensions based on work that is not covered by Social Security
(for example, the federal civil service and some state, local, or
foreign government systems) probably will reduce the amount of your
Social Security benefit. For more information, see the following
fact sheets which you may review and download by clicking on the
title: "Windfall Elimination
Provision" and "Government
Pension Offset".
Q. My wife and I both worked under
Social Security. Her Social Security Statement says she can get
$850 a month at full retirement age and mine says I would get $1450.
Do we each get that our own amount? Someone told me we could only
get my amount, plus one-half of that amount for my wife.
A. Since your wife's own benefit is more than one-half of
your amount, you will each get your own benefit. If your wife's
own benefit were less than half of yours (that is, less than $725),
she would receive her amount plus enough on your record to bring
it up to the $725 amount.
Q. If I work after I start receiving
Social Security retirement benefits, will I still have to pay Social
Security and Medicare taxes on my earnings?
A. Yes. Any time you work in a job that is covered by Social
Security--even if you are already receiving Social Security benefits--you
and your employer must pay the Social Security and Medicare taxes
on your earnings. The same is true if you are self-employed; you
are still subject to the Social Security and Medicare taxes on your
net profit.
Q. Someone told me that Social Security
has a financial planning service. I don't understand the connection
between financial planning and Social Security.
A. Social Security is not in the financial planning business.
However, Social Security can offer you a free Social Security Statement
to help you in assessing your financial planning needs. The statement
gives you a breakdown of all the wages reported under your social
security number as well as estimates of what Social Security benefits
you and your family would be eligible for.
Once you know what to expect from Social
Security, you can plan your other financial needs. We encourage
you to visit the Ball
Park Estimate calculator of the American Savings Education Council
and study your other retirement income options, and FirstGov
for Seniors to learn more about retirement planning. They offer
comprehensive information on Savings, Investment, Pensions, Medical
Insurance, and Housing at their Seniors Retirement Planner.
[Return
to top of page]
|
DISABILITY
Q.
I'm a 30-year-old woman and have been dividing my life between home
and periods of work. How much work do I need to make sure I have
Social Security disability insurance?
A. That is a good question. Some people don't realize they
need recent work under Social Security to qualify for disability
benefits. After age 30, you must have 20 credits (5 years) of work
in the 10 years before your disability started. Credits are assigned
to calendar years based on the amount of your earnings for that
year. In 2004, you earn one credit for every $900 in earnings, up
to a maximum of four credits for the year. In 2005, that amount
increases to $920. Check here
for more information about the time period in which you need your
credits in order to qualify for disability benefits.
Q. If my disability must be expected
to last at least a year in order for me to qualify, does this mean
I have to wait a year to get benefits?
A. No, you don't have to wait a year after becoming disabled
before you can receive benefits. You should apply for the benefits
as soon as you can. If you are approved, your payments will begin
after a 5-month waiting period that starts with the month Social
Security decides your disability began.
Q. If I qualify, is there a time limit
on how long I can receive disability benefits?
A. No. You will continue to receive your disability benefits
as long as your condition keeps you from working. But your case
will be reviewed periodically to see if there has been any improvement
in your condition and whether you
are still eligible for benefits. If you are still disabled when
you reach full retirement age, your disability benefit will be automatically
converted to a retirement benefit of the same amount.
Q. If I am eligible for Social Security
disability benefits, am I also eligible for Medicare benefits?
A. If you receive disability benefits, you become eligible
for Medicare 24 months after the first month for which you are entitled
to receive a disability payment.
Q. Where can I get a list of the impairments
that Social Security considers to be disabling?
A. Disability
Evaluation Under Social Security (SSA Pub. No. 64-039) contains
the medical criteria that Social Security uses to determine disability.
This 205-page book is intended primarily for physicians and other
health professionals.
[Return
to top of page]
|
SURVIVORS
Q. My father died recently at age
65. Can my mother collect his Social Security benefits? She just
turned age 58.
A. Unless your mother is disabled, she would not be eligible
for monthly survivors benefits based on your father's earnings record
until she is age 60. At that age, her benefit would be 71½
percent of his basic benefit amount. If she waits until she reaches
her full retirement age, she will receive 100 percent of his amount.
(Disabled widows or widowers can receive benefits as early as age
50.)
Q.
My wife recently died of cancer, leaving me to support our two children,
ages 5 and 7, and myself. A concerned friend told me to go to the
local Social Security office and ask about survivors benefits. What
should I take with me when I go to the Social Security office?
A. When applying for survivors benefits for yourself and
your children, you should have your and your wife's Social Security
numbers, your and your children's birth certificates, and the children's
Social Security numbers. You will also need to provide evidence
of your wife's death and your marriage. The documents need to be
originals or copies certified by the issuing agency. Uncertified
photocopies aren't acceptable. We will return the documents to you.
It's best to call Social Security's toll-free telephone number first
to set up an appointment so you won't have to wait. The telephone
number is 1-800-772-1213.
Q. How can I find out who are listed
as my beneficiaries on my Social Security record? I want to make
sure my ex-spouse isn't on there and doesn't get anything.
A. Social Security records do not have "named beneficiaries."
The Social Security Act specifies which family members can receive
benefits on your record when
you retire, become disabled,
or die. We cannot pay
benefits to people who do not meet the requirements of the law,
nor can we refuse to pay benefits to people who do meet those requirements--even
if you ask us not to. But any payments we make to your former spouse
based on your record will not affect the amounts that can be paid
to a subsequent spouse or your children.
Q. I recently received a flyer
in the mail about insurance. It stated that all you get when your
spouse dies is a lump-sum death payment of $255. Is this true? Are
my husband and I paying 7.65 percent in Social Security taxes for
this small sum of money?
A. While it's true that Social Security has a lump-sum death
payment of $255, Social Security provides much more to the survivors
of a deceased worker--for an average family, it provides protection
equivalent to a $354,000 insurance policy. The Social Security disability
program for an average family is equivalent to a private disability
insurance policy worth over $233,000. And, of course, Social Security
provides retirement benefits that last as long as you live and increases
each year with increases in the cost of living. You and your husband
will each receive an annual Social Security Statement, giving you
estimates of your potential monthly benefits. You can also use
the Benefit Calculators in this Planner to estimate your benefits
[Return
to top of page]
Answers to additional questions can be found
in "Answers to Your
Questions."
|
|
|
www.socialsecurity.gov
