www.socialsecurity.gov

What Every Financial EducatorShould Know About

Social Security Benefits

How Do You Qualify for Retirement Benefits?

Example: To earn 4 credits in 2015, you must earn at least $4,880.00. Earning 40 credits (10 years of work) throughout

your working life will qualify you for a retirement benefit.

You need to work to earn Social Security “credits”

Each $1,220 inearnings gives youone credit

You can earn a maximum of 4 credits per year

How Social Security Determines Your Benefit

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

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

Step 3 -Result is “average indexed monthly earnings”

Social Security benefits are based on earnings

Spouse’s Benefit Computation

Benefit is 50% of worker’s unreduced benefit

Reduction for early retirement

If spouse’s own benefit is less than50% of the worker’s, the benefitsare combined

Does not reduce payment to worker

Full Retirement Age

Year of Birth Full Retirement Age

1937 or earlier 651938 65 & 2 months1939 65 & 4 months1940 65 & 6 months1941 65 & 8 months1942 65 & 10 months1943 – 1954 661955 66 & 2 months1956 66 & 4 months1957 66 & 6 months1958 66 & 8 months1959 66 & 10 months1960 or later 67

Deciding When To Retire

If You’re A Worker and Retire:

At age 62, you get a lower monthly payment

At your full retirement age, you get your full benefit

You get an even higher monthly payment if you work past your full retirement age

In Addition to the Retiree,Who Else Can Get Benefits?

Your Spouse

Age 62 or older

At any age, if caring for a child under age 16 or disabled

Your Child

Not married under 18 (under 19 if still in high school)

Not married and disabledbefore age 22

A person can receive benefits as a divorced spouse on a former spouse’s Social Security record if he or she:

Was married to the former spouse for at least 10 years;

Is at least age 62 years old; Is unmarried; and Is not entitled to a higher Social Security

benefit on his or her own record.

If You Are Divorced

Retirement Strategies

File and Suspend Upon reaching full retirement, an individual may claim his/her retirement benefit and then immediately suspend payment.  This will allow the individual to earn delayed retirement credits up to 8% a year until age 70 and the individual’s spouse and children to receive benefits while his or her benefit is suspended.

For more information, visit our Retirement Planner: Suspending Retirement Benefit Paymentswww.socialsecurity.gov/planners/retire/suspend.html

Retirement Strategies

Claim Now, Claim More Later

At full retirement age, a marriedindividual can claim a spousal benefit& then switch to his/her ownretirement benefit at a later date.

This builds up delayed retirement credits, which will result in a higher retirement benefit.

For more information, visit our Retirement Planner: Benefits for Your Spousewww.socialsecurity.gov/planners/retire/yourspouse.html

If You Change Your Mind (aka Withdrawing Your Application)

If you are receiving Social Security Retirement benefits and change your mind about when they should start, you may be able to withdraw your claim within 12 months from when you became entitled to retirement benefits. Note: You are limited to one withdrawal per lifetime.

For more information, visit our Retirement Planner: If You Change Your Mind

www.socialsecurity.gov/planners/retire/withdrawal.html

Retirement Strategies

You Can Work & Still Receive Benefits

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.

If You Are You Can MakeUp To

If You Make More, Some Benefits Will

Be Withheld

Under Full Retirement Age

$15,720/yr. ($1,310/mo.)

$1 for every $2

The Year Full Retirement Age

is Reached

$41,880/yr. ($3,490/mo.)

$1 for every $3

Month of Full Retirement Age

and AboveNo Limit No Limit

www.socialsecurity.gov

www.socialsecurity.gov/thirdparty/financial-planners.html

Your Online Account... Your Control... www.socialsecurity.gov/myaccount

my Social Security is an easy-to-access,

easy-to-use portal to view and update some of your own Social Security information.

  

my Social Security

Visit socialsecurity.gov/myaccount

2

1

Select:Create an Account

Getting StartedHow to open a my Social Security account

my Social Security

Provide some personal information to verify your identity.

Choose a “username” and “password” to create your account.

Getting StartedHow to open a my Social Security account

4

3

my Social Security

Retirement Estimatorwww.socialsecurity.gov/retire2/estimator.ht

m

Life Expectancy Calculatorwww.socialsecurity.gov/OACT/population/longevity.html

Apply online at www.socialsecurity.gov/applyonline It is the most convenient way to apply;

Call Social Security to schedule an appointment at

1-800-772-1213 (TTY 1-800-325-0778) to:

• Apply over the telephone or

• Apply in person at your local Social Security office

How Do I Applyfor Retirement Benefits?

or

Call Social Security toll-free at

1-800-772-1213TTY 1-800-325-0778

7 am – 7 pm Monday – Friday

Automated Phone Service 24/7

For More Information

Get answers online to “Frequently Asked

Questions” (FAQs) about Social Security at:

www.socialsecurity.gov

Like us on Facebook

www.facebook.com/socialsecurity

Follow us on Twitter

www.twitter.com/socialsecurity

www.twitter.com/SSAOutreach

Read our blog, Social Security Matters

http://blog.ssa.gov

Watch our YouTube channel @ www.youtube.com/SocialSecurityOnline

Get Social With Social Security