Social Security Guide
Social Security Guide
Social Security Guide
Whats Inside Social Security and your retirement plans . . . . . 4 Your retirement benefits . . . . . . . . . . . . . . . . . . . 4 Family benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 What you need to know when you are eligible for retirement benefits . . . . . . . . . . 11 A word about Medicare . . . . . . . . . . . . . . . . . . . 16
You can, for example, change your stop work dates or expected future earnings to create and compare different retirement options. For more information, ask for Online Retirement Estimator (Publication No. 05-10510) or How To Use The Online Retirement Estimator (Publication No. 05-10511) or visit our website at www.socialsecurity.gov/estimator.
1960 and later 67 NOTE: People who were born on January 1 of any year should refer to the previous year.
Early retirement
You can get Social Security retirement benefits as early as age 62. However, you will receive a reduced benefit if you retire before your full retirement age. For example, if you retire at age 62, your benefit would be about 25 percent lower than what it would be if you waited until you reach full retirement age. 6
Some people stop working before age 62. But if they do, the years with no earnings will probably mean a lower Social Security benefit when they retire. NOTE: Sometimes health problems force people to retire early. If you cannot work because of health problems, you should consider applying for Social Security disability benefits. The amount of the disability benefit is the same as a full, unreduced retirement benefit. If you are receiving Social Security disability benefits when you reach full retirement age, those benefits will be converted to retirement benefits. For more information, ask for Disability Benefits (Publication No. 05-10029).
Delayed retirement
You may choose to keep working even beyond your full retirement age. If you do, you can increase your future Social Security benefits in two ways. Each additional year you work adds another year of earnings to your Social Security record. Higher lifetime earnings may mean higher benefits when you retire. Also, your benefit will increase automatically by a certain percentage from the time you reach your full retirement age until you start receiving your benefits or until you reach age 70. The percentage varies depending on your year of birth. For example, if you were born in 1943 or later, we will add 8 percent per year to your benefit for each year that you delay signing up for Social Security beyond your full retirement age. NOTE: If you decide to delay your retirement, be sure to sign up for Medicare at age 65. In some circumstances, medical insurance costs more if you delay applying for it. Other information about Medicare is on pages 16-17.
available options and make an informed decision. In some cases, your choice of a retirement month could mean higher benefit payments for you and your family. In deciding when to retire, it is important to remember that financial experts say you will need 70-80 percent of your preretirement income to have a comfortable retirement. Since Social Security replaces only about 40 percent of preretirement income for the average worker, it is important to have pensions, savings and investments. You should apply for benefits about three months before the date you want your benefits to start. If you are not quite ready to retire, but are thinking about doing so in the near future, you may want to visit Social Securitys website to use our convenient and informative retirement planner at www.socialsecurity.gov/retire.
Former spouses, if they are age 62 or older (see Benefits for a divorced spouse on page 11); Children up to age 18, or up to 19 if they are fulltime students who have not yet graduated from high school; and Disabled children, even if they are age 18 or older. If you become the parent of a child (including an adopted child) after you begin receiving benefits, let us know about the child so we can decide if the child is eligible for benefits. NOTE: Childrens benefits are available only to unmarried children. However, in certain situations, benefits are payable to a disabled child who marries someone who also has been disabled since childhood.
Spouses benefits
A spouse who has not worked or who has low earnings can be entitled to as much as one-half of the retired workers full benefit. If you are eligible for both your own retirement benefits and for benefits as a spouse, we always pay your own benefits first. If your benefits as a spouse are higher than your retirement benefits, you will get a combination of benefits equaling the higher spouse benefit. If you have reached your full retirement age, and are eligible for a spouses or ex-spouses benefit and your own retirement benefit, you may choose to receive only spouses benefits and continue accruing delayed retirement credits on your own Social Security record. You then may file for benefits later and receive a higher monthly benefit based on the effect of delayed retirement credits. If you are receiving a pension based on work where you did not pay Social Security taxes, your spouses benefit may be reduced. Additional information on pensions from work not covered by Social Security can be found on page 15 of this publication.
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What you need to know when you are eligible for retirement benefits How do you sign up for Social Security?
You can apply for retirement benefits online at www.socialsecurity.gov or you can call our toll-free number, 1-800-772-1213. Or you can make an appointment to visit any Social Security office to apply in person. Depending on your circumstances, you will need some or all of the documents listed below. But do not delay applying for benefits because you do not have all the information. If you do not have a document you need, we can help you get it.
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Information needed: Your Social Security number; Your birth certificate; Your W-2 forms or self-employment tax return for last year; Your military discharge papers if you had military service; Your spouses birth certificate and Social Security number if he or she is applying for benefits; Childrens birth certificates and Social Security numbers, if you are applying for childrens benefits; Proof of U.S. citizenship or lawful alien status if you (or a spouse or child applying for benefits) were not born in the United States; and The name of your financial institution, the routing number and your account number, so your benefits can be deposited directly into your account. If you do not have an account at a financial institution or prefer receiving your benefits on a prepaid debit card you can receive a Direct Express card. For more information, visit www.GoDirect.org. You will need to submit original documents or copies certified by the issuing office. You can mail or bring them to Social Security. We will make photocopies and return your documents.
Right to appeal
If you disagree with a decision made on your claim, you can appeal it. For an explanation of the steps you can take, ask for The Appeals Process (Publication No. 05-10041). You can handle your own appeal with free help from Social Security or you can choose to have a representative help you. We can give you information about organizations that can help you find a representative. For more information about selecting a representative, ask for Your Right To Representation (Publication No. 05-10075). 12
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Notes
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Social Security Administration SSA Publication No. 05-10035 ICN 457500 Unit of Issue - HD (one hundred) July 2012 (Recycle prior editions)
Printed on recycled paper