social security & you
DESCRIPTION
Social Security & You. Presented by: Warren Coble Social Security Benefit Counselor. Benefits Nationwide. $1,261.00 per month retiree average Nationwide – 62,015,000 recipients in 01/2013 10,000 per DAY turning 62 years old, will continue for 17 more years. How Do You Qualify?. Page 4 - PowerPoint PPT PresentationTRANSCRIPT
Social Security & You
Presented by:
Warren Coble
Social Security Benefit Counselor
Benefits Nationwide
$1,261.00 per month retiree average Nationwide – 62,015,000 recipients in 01/2013 10,000 per DAY turning 62 years old, will
continue for 17 more years
How Do You Qualify?
Page 4 Insured status = work • 10 years or 40 “credits” or quarters of
coverage Quarter of coverage
2013 - 1 qc for each $1,160 earned• 4 max per year = $4,640.00
Retirement Benefits
Attain minimum age = 62
Minimum work credit = 10 years
File application
Current work within limits
How Much Will You Receive?
Retirement, survivors, and disability benefits all derive from one computation:
The primary insurance amount, or “PIA” See handout of computation Get estimates ahead of time(page 5)
Full Retirement Age Is Not The Same As Age 65!!!
1943 - 1954 - age 66 1955+ – 2 month increase to age 67
See chart on page 6 Did not increase the age 62 filing, only full
retirement age, but decreases the age 62 rate
Retirement Benefit Rates
Depends on number of months prior to full retirement age
Age 62 = 75% Age 63 = 80% Age 64 = 86.6% Age 65 = 93.3% Increases monthly toward Full Retirement Age 2013 maximum - $2,533.00
Special Note About Age 62
You must be age 62 throughout the entire month!!SSA determines that you attain the day prior
Born on 1st or 2nd of month can be paid for month of actual age 62
Otherwise, month after age 62 Benefits not paid for month of death
Delayed Retirement
See page 7 Between 66 – 70 Increases benefit 8% per full year of
delayed receipt of benefits – total 132% Delay also applies to survivor benefits
When To File For Retirement
Depends on personal choice• Finances• Insurance• Job stress• Job satisfaction• Health• Family longevity• Time to do other things
See handout
Depends on work• Within limits• Advantageous
Depends on age• Late birth in year
FRA- check ahead of time
Benefits For Family
Spouse 62+ (1 year marriage) Spouse under 62 caring for child under 16
or disabled Divorced spouses (10 years) Children – under 18, 18-19 in high school,
or disabled before 22 Widows and widowers
Benefits for Family
There is a family maximum, usually 150-180% of the worker’s benefit
Does not affect worker’s benefit
See page 11
Spousal Benefits
See page 9 of retirement book Under FRA (66), must receive own benefit
first Must be age 66 to delay filing and claim
spousal benefits only to delay for extra credit
Survivor Benefits
Widow(er)s – Age 60 (50 if disabled) Amount = 71 ½% of Primary Amount
Children:Under 18
Age 18-19 until finish high school
Disabled before age 22
Amount = 75% of PIA Subject to Family Max
Survivor Benefits, Cont.
Surviving spouse has option of choosing between own retirement (if already 62) or survivor benefits, and can choose to receive one benefit and delay the other until full retirement age or even age 70 for delayed retirement credits.
Signing Up For Benefits
About three months prior to time you want your checks to start
Warren Coble & Associates can assist Internet - www.socialsecurity.gov By toll-free phone Local office interview by phone or in-person No written application
Retirement Documentation Required
Proof of age- birth certificate Proof of earnings - W-2 form Direct deposit information Military service (prior to 1968) Marital history Earnings decline if self-employed or own
business
Signing Up For Benefits
Regardless of method used, a letter (notice of award) will be sent explaining benefit rights
You can file an appeal if you disagree with a decision
Always Understand The “Why”
Work limitationsunder full retirement age (FRA)
limitations 2013 = $15,120 Basic rule:
• Earnings under $15,120.00 allow payment of all benefits for 2013
• Earnings over $15,120.00 require withholding $1 in benefits for each $2 over $15,120.00
• Special monthly rule $1,260.00• Earnings count from January 1
Work Limitations - Full Retirement Age
2013
Excess charged at $1 for $3 ratio
See handout – how work affects benefits
$40,080
Only earnings up to month of FRA are included
Earnings Types
Countable: Wages from a job Net earnings from
self-employment
Non-countable: Interest Dividends Capital gains Rentals Pension/annuity 401 k VA benefits
Taxation Of Benefits
Total income • $25k - $34k (individual)• $32k - $44k (joint)• 50 % threshold• If including 50% of SSA benefit puts you in the ranges
shown, 50% of benefits subject to taxation
Taxation of Benefits
Total income • $34k up (individual)• $44k up (joint)• If including 50% of social security benefit puts total
income over ranges shown, 85% of benefit is taxable• Consult tax advisor for specifics
Non-covered Pensions
Affects the worker through windfall elimination provision
Teacher/government retirement from other states
Federal Civil Service (FERS not counted) Affects spouses through government
pension offset
What Warren Coble & Associates Can Do For Clients
Pre-retirement planning Provide personalized service Application assistance Disability applications and appeals Medicare/Supplement/Part D guidance Senior services referrals Caregiver referrals/guidance
Warren Coble & Associates, Inc.Certified Senior Advisor
Benefit Counselors3081 Maness Coble Dr.Asheboro NC 27205
336 879-0848