Social Security: Retirement 101 · • Your ex-spouse is entitled to Social Security retirement or...

SocialSecurity.gov

Social Security: Retirement 101

SocialSecurity.gov

Thinking of Retiring?• It is a personal decision

• Decide what is the “right” age

• Working after retirement?

• Medicare considerations

• Use tools on SSA’s website to help you make an informed decision

SocialSecurity.gov

socialsecurity.gov/myaccount

my Social Security

SocialSecurity.gov

my Social Security ServicesIf you receive benefits or have Medicare, you can:

• Request a replacement Social Security card if you meet certain requirements;

• Report your wages if you work and receive Disability Insurance benefits;

• Get a benefit verification letter as proof that you are getting benefits;

• Check your benefit and payment information and your earnings record;

• Change your address and phone number;

• Start or change direct deposit of your benefit payment;

• Request a replacement Medicare card; and

• Get a replacement SSA-1099 or SSA-1042S for tax season.

SocialSecurity.gov

How Do You Qualify for Retirement Benefits?• By earning “credits” when you work and pay Social

Security taxes• You need 40 credits (10 years of work) and 62 or older• Each $1,410 in earnings gives you one credit• You can earn a maximum of 4 credits per year• To earn 4 credits in 2020, you must earn at least $5640

SocialSecurity.gov

How Social Security Determines Your BenefitBenefits are based on earnings

• Step 1 -Your wages are adjusted for changes in wage levels over time

• Step 2 -Find the monthly average of your 35 highestearnings years

• Step 3 -Result is “average indexed monthly earnings”

SocialSecurity.gov

Year of Birth

Full Retirement Age

A $1000 retirement benefit taken at age 62 would be reduced by

1943-1954 66 25%1955 66 and 2 months 25.83%

1956 66 and 4 months 26.67%

1957 66 and 6 months 27.5%

1958 66 and 8 months 28.33%

1959 66 and 10 months 29.17%

1960 + 67 30%

SocialSecurity.gov

What Is the Best Age to Start Receiving Social Security Retirement Benefits?

Age You Choose to Start Receiving Benefits

Note: This example assumes a benefit of $1,000 at a full retirement age of 66

Chart1

62

63

64

65

66

67

68

69

70

Series 1

Monthly Benefit Amounts Differ Based on the Age You Decide to Start Receiving Benefits

1,000

1,080

1,160

1,240

1,320

750

800

866

933

1000

1080

1160

1240

1320

Sheet1

Series 1

62$750

63800

64866

65933

661000

671080

681160

691240

701320

SocialSecurity.gov

socialsecurity.gov/estimator

Retirement Estimator• Gives estimates based on your actual Social Security earnings

record• You can use the Retirement Estimator if:

• You have enough Social Security credits at this time to qualify for benefits and

• You are not: • Currently receiving benefits on your own Social Security record; • Waiting for a decision about your application for benefits or Medicare; • Age 62 or older and receiving benefits on another Social Security record; or • Eligible for a Pension Based on Work Not Covered By Social Security.

https://www.ssa.gov/planners/retire/creditsa.htmlhttps://www.ssa.gov/planners/retire/gpo-wep.html

SocialSecurity.gov

Who Else Can Receive Benefits?Your Child:

• Biological or Adopted Child not married and under the age of 18 or 19 if in high school

• Not married and disabled before the age 22

Your Spouse:

• Age 62 of older with little or no work history• At any age, if caring for a child under 16 or disabled

SocialSecurity.gov

Spousal Benefits• Benefit is up to 50% of worker’s benefit

Receive 50% if at full retirement age • Reduction for early retirement- Age 62-30%• The worker must be receiving benefits• Does not reduce payment to worker • If spouse’s own benefit is less than 50% of the worker’s, the

benefits are combined

SocialSecurity.gov

Benefits for Divorced SpousesYou may receive benefits on your ex-spouse's record (even if he or she has remarried) if:

• Marriage lasted 10 years or longer• You are unmarried; • You are age 62 or older; • Your ex-spouse is entitled to Social Security retirement or

disability benefits (age 62 or older); and• The benefit you are entitled to receive based on your own work

is less than the benefit you would receive based on your ex-spouse's work.

SocialSecurity.gov

Examples Ricky receives $1200 a month. Lucy files for benefits, eligible for $1000 a month. Lucy would not qualify for spousal benefits because her amount is more than half of his. Lucy is not dependent on Ricky’s benefit.

Laura files for benefits, eligible for $1800 a month. Her husband, Luke is already receiving $600.00 a month. Luke’s benefit is less than half of Laura’s so he is dependent. Luke will continue to receive his $600.00 and receive an additional $300.00 from Laura. Luke could not receive the extra $300 until Laura filed for benefits.

SocialSecurity.gov

We’re There If YouLose Your Soulmate

SocialSecurity.gov

Survivor Eligibility FactorsChild May receive benefits if not married and is

under age 18 (or under age 19 if still in high school)

Disabled Child If not married and disabled before age 22

Widow / WidowerOr Divorced Widow/Widower

Reduced benefits at age 60 ORFull benefits at full retirement age ORAt any age if caring for child under 16 or a disabled child Divorced Widows and Widowers May Qualify

SocialSecurity.gov

• At age 60, eligible for 71.5%• At age 62, eligible for 82.5%• At Full Retirement age, eligible for 100% • Reduced widow/widower benefits at age 60 and then switch

to own record at a later date (ex. Age 70)• Full benefits are available to widow/widower and divorced

widow/widower

Survivor Benefits

SocialSecurity.gov

If you are You can make up to If you earn more, some benefits will be withheld

Under Full Retirement Age

$18,240/yr. ($1520/mo.)

$1 for every $2

The Year Full Retirement Age is Reached

$48,600/yr. ($4050/mo.)

$1 for every $3

Month of Full Retirement Age and Above

No Limit No Limit

Note: If some of your retirement benefits are withheld because of your earnings, your benefits will be increased starting at your full retirement age to take into account those months in which benefits were withheld.

Working While Receiving Benefits

SocialSecurity.gov

Your adjusted gross income

+ Nontaxable interest

+ ½ of your Social Security

benefits

= Your "combined income“

Taxation of Social Security Benefits

SocialSecurity.gov

Applying for Benefits2 options available to apply:

Online

By phone 1-800-772-1213

You choose the most convenient option for you!

Note: Child and survivor claims can only be done by phone or in a field office (not online) at this time.

SocialSecurity.gov

SocialSecurity.gov

No partial month benefits (for age 62 must be born 1st or 2nd day of the month)Benefits paid the month following the month they are due. (June’s payment issued in July)Pay date based on day of workers birth:

1st through 10th - 2nd Wednesday11th through 20th - 3rd Wednesday21st through 31st - 4th Wednesday

If drawing benefits before June 1, 1997 paid on 3rd day of the month.

Payment Delivery Date

SocialSecurity.gov

Medicare

Produced at U.S. taxpayer expense

SocialSecurity.gov

When Can I Get Medicare?65 & older

-or-24 months after entitlement to Social Security Disability

Benefits -or-

Amyotrophic Lateral Sclerosis -or-

Permanent Kidney Failure and receives Maintenance Dialysis or a Kidney Transplant

SocialSecurity.gov

Part A = Hospital Insurance (Inpatient, Home Health Care, Skilled Nursing, Hospice)

Part B = Medical Insurance (Doctor’s Services, Home Heath Services, Preventive Services and Durable Medical Equipment) - $144.60 a mo. (2020)

Part C = Medicare Health Plans – cost will vary from provider to provider

Note: Contact GeorgiaCares for assistance: 1-866-552-4464 or mygeorgiacares.org

Part D = Prescription Drug Plan

Medicare

SocialSecurity.gov

Social Security processes Medicare enrollment for beneficiaries. • If receiving Social Security benefits before age 65, automatically

enrolled into Part A and Part B.

• Premiums are deducted from monthly cash benefit.

• No action necessary.

SocialSecurity.gov

If still working at age 65…..• AND covered by health insurance from current employer or

spouse’s employer, have the option to apply for Medicare Part A only and refuse Medicare Part B.

NOTE: If High Deductible HSA is your type of health insurance at age 65 do not sign up for Medicare Part A until you separate. Must stop your contributions to HSA 6 months before your retire to avoid potential tax liabilities.

• When the person who has health insurance coverage stops working, have 8 months from the day of separation to enroll into Medicare Part B with no penalty.

SocialSecurity.gov

If still working at age 65 (continued)…..• 2 months before you retire, contact Social Security to request

“Medicare Special Enrollment Forms.” One form for the employer and one for the applicant. Return both forms to SSA for Part B enrollment.

• Medicare Part B enrollment is not retroactive. Need to have forms submitted to SSA timely to avoid gaps in coverage.

• Failure to enroll timely (within 8 months after separating) will result in a 10% penalty of the Medicare Part B for each year you were not enrolled into Part B. Plus, you will also be restricted to a specific time of year to enroll into Medicare Part B.

SocialSecurity.gov

If NOT working at 65……• Not covered under working spouse’s employer’s health insurance

AND waiting to start cash benefits after age 65:

• Contact Social Security 3 months before 65 to apply for Medicare only. Will need to file for Part A and Part B.

• Complete Medicare claim online. Easy and Quick!

• Will pay Medicare directly until cash benefits start.

SocialSecurity.gov

Modified Adjusted Gross Income (MAGI)

Part B monthly premium amount

Prescription drug coverage monthly premium amount

Individuals with a MAGI of $87,000 or less

Married couples with a MAGI of $174,000 or less

$144.60 Your plan premium

Individuals with a MAGI above $87,000 up to $109,000

Married couples with a MAGI above $174,000 up to $218,000

$189.60 Your plan premium + $12.20







Individuals with a MAGI above $163,000 to $500,000

Married couples with a MAGI above $326,000 to $750,000


Individuals with a MAGI above $500,000

Married couples with a MAGI above $750,000


Medicare standard Part B premium for 2020

SocialSecurity.gov

Medicare Card

Your card will have a Medicare Claim Number that's unique to you, instead of your Social Security number. This will help to protect your identity.

SocialSecurity.gov

1-800-MEDICARE or Medicare.gov

SocialSecurity.gov

MyMedicare.gov

http://www.mymedicare.gov/

Social Security: �Retirement 101 Slide Number 2Slide Number 3Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Retirement EstimatorWho Else Can Receive Benefits?Spousal BenefitsSlide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 19Slide Number 20Applying for BenefitsSlide Number 23Slide Number 24Medicare Slide Number 26Slide Number 27Slide Number 28Slide Number 29Slide Number 30Slide Number 31Slide Number 32Medicare CardSlide Number 34MyMedicare.gov

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