Retirement Benefits

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2019Retirement BenefitsSocialSecurity.gov

What's insideSocial Security and your retirement plan1Your retirement benefits1Family benefits6What you need to know when you’re eligiblefor retirement benefits10A word about Medicare14When should I apply for Medicare?14Contacting Social Security17

Social Security and your retirement planSocial Security is part of the retirement plan of almostevery American worker. If you’re among the 96 percent ofworkers covered under Social Security, you should knowhow the system works. You should also know how muchyou’ll receive from Social Security when you retire. Thisbooklet explains: How you qualify for Social Security benefits; How your earnings and age can affect your benefits; What you should consider in deciding when toretire; and Why you shouldn’t rely only on Social Security for allyour retirement income.This basic information on Social Security retirementbenefits isn’t intended to answer all questions. Forspecific information about your situation, talk with a SocialSecurity representative.Your retirement benefitsHow do you qualify for retirement benefits?When you work and pay Social Security taxes, you earn“credits” toward Social Security benefits. The number ofcredits you need to get retirement benefits depends onwhen you were born. If you were born in 1929 or later,you need 40 credits (10 years of work).If you stop working before you have enough credits toqualify for benefits, the credits will remain on your SocialSecurity record. If you return to work later, you can addmore credits to qualify. We can’t pay any retirementbenefits until you have the required number of credits.1

How much will your retirement benefit be?We base your benefit payment on how much you earnedduring your working career. Higher lifetime earnings resultin higher benefits. If there were some years you didn’twork or had low earnings, your benefit amount may belower than if you had worked steadily.The age at which you decide to retire also affects yourbenefit. If you retire at age 62, the earliest possible SocialSecurity retirement age, your benefit will be lower than ifyou wait. Page 4 explains this in more detail.Online my Social Security accountYou can now easily set up a secure onlinemy Social Security account. This allows you to accessyour Social Security Statement to check your earningsand get your benefit estimates. You can also useyour online my Social Security account to request areplacement Social Security number card (available inmany states and the District of Columbia). If you receivebenefits, you can also: Get your benefit verification letter; Change your address and phone number; Request a replacement Medicare card; Get a replacement SSA-1099 or SSA-1042S for taxseason; or Start or change your direct deposit.You can create a my Social Security account if you’reage 18 or older, have a Social Security number, a validU.S. mailing address, and an email address. To createan account, go to www.socialsecurity.gov/myaccount.You’ll need to provide some personal information toconfirm your identity. You’ll be asked to choose ausername and password, and then you’ll be asked foryour email address. You’ll also need to select how youwould like to receive a one-time security code — to a text2

enabled cell phone or to the email address you registered— that you will need to enter to finish creating youraccount. Each time you sign in with your username andpassword, we will send a one-time security code to yourcell phone or to your email address. The security codeis part of our enhanced security feature to protect yourpersonal information. Keep in mind that your cell phoneprovider's text message and data rates may apply.Get personalized retirement benefit estimatesYou can use our online Retirement Estimator toget immediate and personalized retirement benefitestimates to help you plan for your retirement. Theonline Retirement Estimator is a convenient andsecure financial planning tool that eliminates the needto manually key in years of earnings information. Theestimator will also let you create “what if” scenarios.You can, for example, change your “stop work” dates orexpected future earnings to create and compare differentretirement options.For more information, read the publication, OnlineRetirement Estimator (Publication No. 05-10510), or visitour website at www.socialsecurity.gov/estimator.Full retirement ageIf you were born in 1952 or earlier, you’re already eligiblefor your full Social Security benefit. The full retirementage is 66 if you were born from 1943 to 1954. The fullretirement age increases gradually if you were born from1955 to 1960 until it reaches 67. For anyone born 1960 orlater, full retirement benefits are payable at age 67. Thefollowing chart lists the full retirement age by year of birth.Age to receive full Social Security benefitsYear of birthFull retirement age1943-1954663

Age to receive full Social Security benefitsYear of birthFull retirement age195566 and 2 months195666 and 4 months195766 and 6 months195866 and 8 months195966 and 10 months1960 and later67NOTE: People born on January 1 of any year, refer to theprevious year.Early retirementYou can get Social Security retirement benefits as earlyas age 62. However, we’ll reduce your benefit if you retirebefore your full retirement age. For example, if you turnage 62 in 2019, your benefit would be about 27.5 percentlower than it would be at your full retirement age of 66 and6 months.Some people will stop working before age 62. But if theydo, the years with no earnings will probably mean a lowerSocial Security benefit when they retire.Sometimes health problems force people toretire early. If you can’t work because of health problems,consider applying for Social Security disability benefits.The disability benefit amount is the same as a full,unreduced retirement benefit. If you’re getting SocialSecurity disability benefits when you reach full retirementage, we convert those benefits to retirement benefits.For more information, read Disability Benefits(Publication No. 05-10029).4

Delayed retirementYou can choose to keep working beyond your fullretirement age. If you do, you can increase your futureSocial Security benefits in two ways.Each extra year you work adds another year of earningsto your Social Security record. Higher lifetime earningscan mean higher benefits when you retire.Also, your benefit will increase a certain percentagefrom the time you reach full retirement age, until youstart receiving benefits, or until you reach age 70. Thepercentage varies depending on your year of birth. Forexample, if you were born in 1943 or later, we’ll add8 percent to your benefit for each full year you delayreceiving Social Security benefits beyond your fullretirement age.NOTE: You should sign up for Medicare three monthsbefore your 65th birthday, even if you haven’t retiredyet. In some circumstances, medical insurance costsmore if you delay applying for it. Other information aboutMedicare is on pages 14-17.Deciding when to retireChoosing when to retire is an important and personaldecision. No matter the age you retire, contact SocialSecurity in advance to learn your choices and make thebest decision. Sometimes, your choice of a retirementmonth could mean higher benefit payments for you andyour family.Social Security replaces a percentage of a worker’spre-retirement income based on their lifetime earnings.The amount of your average wages that Social Securityretirement benefits replaces varies depending on yourearnings and when you choose to start benefits. If youstart benefits at age 67, this percentage ranges fromas much as 75 percent for very low earners, to about5

40 percent for medium earners, and about 27 percentfor high earners. If you start benefits earlier than age67, these percentages would be lower, and after age67 they’d be higher. Most financial advisers say you willneed about 70 percent of pre-retirement income to livecomfortably in retirement, including your Social Securitybenefits, investments, and other personal savings. Formore information on other factors to consider as you thinkabout when to start receiving Social Security retirementbenefits, read Your Retirement Checklist (PublicationNo. 05-10377).Apply for benefits about four months before you wantyour benefits to start. If you’re not ready to retire, butare thinking about doing so soon, visit Social Security’swebsite to use our convenient and informative RetirementPlanner at www.socialsecurity.gov/benefits.Retirement benefits for widows and widowersWidows and widowers can begin getting Social Securitybenefits at age 60, or at age 50, if disabled. Widows andwidowers can take reduced benefits on one record, andthen switch to full benefits on another record later. Forexample, a woman can take a reduced widow’s benefitat 60 or 62, and switch to her own full retirement benefitat full retirement age. You need to talk to Social Securityabout your choices, because the rules may be different foryour claim.Family benefitsBenefits for family membersIf you’re getting Social Security retirement benefits, somemembers of your family may also get benefits, including: Spouses age 62 or older;6

Spouses younger than 62, if they are taking care of achild entitled on your record who is younger than age16 or disabled; Former spouses, if they are age 62 or older (See“Benefits for a divorced spouse” on page 9.); Children up to age 18, or up to 19 if full-time studentsand have not 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 adoptedchild) after you begin getting benefits, let us knowabout the child. Then we’ll decide if the child is eligiblefor benefits.Spouse’s benefitsSpouses who never worked or have low earnings canget up to half of a retired worker’s full benefit. If you’reeligible for both your own retirement benefits and spousalbenefits, we always pay your own benefits first. If yourbenefits as a spouse are higher than your own retirementbenefit, you’ll get a combination of benefits equaling thehigher spouse benefit.For example, Mary Ann qualifies for a retirement benefit of 250 and a spouse’s benefit of 400. At her full retirementage, she will get her own 250 retirement benefit. Wealso will add 150 from her spouse’s benefit, for a totalof 400. If she takes her retirement benefit before her fullretirement age, we’ll reduce both amounts.If you are at least full retirement age and qualify foryour own retirement benefits and also spouse’s (ordivorced spouse) benefits, you can choose to restrictyour application, apply for one of the benefits, and delayapplying for the other until a later date.Under a law passed in 2015, people born on or afterJanuary 2, 1954 no longer have this option. If they qualifyfor both their own retirement and spouse’s (or divorced7

spouse’s) benefits, they must apply for both benefits. Thisis called “deemed filing.” If you file for one benefit, you are“deemed” to file for the other one, too, even if you don’tbecome eligible for it until later.If you’re receiving a pension based on work for whichyou didn’t pay Social Security taxes, we may reduce yourspouse’s benefit. More information on pensions from worknot covered by Social Security is on page 13.If spouses get Social Security retirement benefits beforethey reach full retirement age, we reduce the benefit.The amount we reduce the benefit depends on when theperson reaches full retirement age.For example: If full retirement age is 65, a spouse can get 37.5percent of the worker’s unreduced benefit at age 62; If full retirement age is 66, a spouse can get 35 percentof the worker’s unreduced benefit at age 62; If full retirement age is 67, a spouse can get 32.5percent of the worker’s unreduced benefit at age 62.The benefit increases at later ages up to the maximum of50 percent at full retirement age. If full retirement age isn'tshown here, at age 62 the benefit will fall between 32.5percent and 37.5 percent.Your spouse can get full benefits, regardless of age, iftaking care of a child entitled on your record. The childmust be under age 16, or disabled (before age 22).NOTE: Your current spouse can’t get spouse’s benefitsuntil you file for retirement benefits.Children’s benefitsYour dependent child may get benefits on your earningsrecord when you start your Social Security retirementbenefits. Your child may get up to half of your full benefit.8

To get benefits, your child must be unmarried and: Younger than age 18; or 18-19 years old and a full-time student (no higher thangrade 12); or 18 or older and disabled before age 22.Under certain circumstances, we can also pay benefits toa stepchild, grandchild, step-grandchild, or adopted child.NOTE: Disabled children whose parents have limitedincome or resources may be eligible for SupplementalSecurity Income benefits. For more information, visit ourwebsite or call our toll-free number.Maximum family benefitsIf you have children eligible for Social Security, each willget up to half of your full benefit. But there’s a limit to howmuch money we can pay to you and your family. Thislimit varies between 150 and 180 percent of your ownbenefit payment. If the total benefits due to your spouseand children are more than this limit, we’ll reduce theirbenefits. Your benefit won’t be affected.Benefits for a divorced spouseYour divorced spouse can get benefits on your SocialSecurity record if the marriage lasted at least 10 years.Your divorced spouse must be 62 or older and unmarried.The benefits they get don’t affect the amount you or yourcurrent spouse can get.Also, your former spouse can get benefits even if you’renot retired. You both must be at least 62 and divorced atleast two years.9

What you need to know when you’re eligiblefor retirement benefitsHow do you sign up for Social Security?You can apply for retirement benefits online atwww.socialsecurity.gov, or call our toll-free number,1-800-772-1213 (TTY 1-800-325-0778). Or you can makean appointment to visit any Social Security office to applyin person.Depending on your circumstances, you’ll need some orall the documents listed below. Don’t delay in applying forbenefits if you don’t have all the information. If you don’thave a document you need, we can help you get it.Information and documents you’ll need, include: Your Social Security number; Your birth certificate; Your W-2 forms or self-employment tax return for lastyear; Your military discharge papers if you had militaryservice; Your spouse’s birth certificate and Social Securitynumber if they’re applying for benefits; Your children’s birth certificates and Social Securitynumbers, if you’re applying for children’s benefits; Proof of U.S. citizenship or lawful alien status if you (ora spouse or child applying for benefits) were not bornin the United States; and The name of your financial institution, the routingnumber, and your account number for direct deposit.If you don’t have an account at a financial institution,or prefer getting your benefits on a prepaid debitcard, you can get a Direct Express card. For moreinformation, visit www.GoDirect.org.10

You must submit original documents or copies certifiedby the issuing office. You can mail or bring them toSocial Security. We’ll make photocopies and returnyour documents.Right to appealIf you disagree with a decision made on your claim,you can appeal it. For an explanation of the stepsyou can take, read The Appeals Process(Publication No. 05-10041).You can handle your own appeal with free helpfrom Social Security, or you can choose to have arepresentative help you. We can give you informationabout organizations that can help you find arepresentative. For more information about selectinga representative, read Your Right to Representation(Publication No. 05-10075).If you work and get benefits at the same timeYou can continue to work and still get retirement benefits.Your earnings in (or after) the month you reach your fullretirement age won’t reduce your Social Security benefits.We’ll reduce your benefits, however, if your earningsexceed certain limits for the months before you reach fullretirement age. (See the chart on pages 3-4 to find yourfull retirement age.)Here is how it works:If you’re younger than full retirement age, we’ll deduct 1in benefits for each 2 you earn above the annual limit.In the year you reach your full retirement age, we’ll reduceyour benefits 1 for every 3 you earn over an annuallimit. This reduction continues until the month you reachfull retirement age. Once you reach full retirement age,you can keep working and we won’t reduce your SocialSecurity benefit no matter how much you earn.11

If, during the year, your earnings are higher or lower thanyou estimated, let us know as soon as possible so we canadjust your benefits.A special monthly ruleA special rule applies to your earnings for one year,usually your first year of retirement. Under this rule,you can get a full Social Security check for any monthyou earn under a certain limit, regardless of youryearly earnings.If you want more information on how earnings affect yourretirement benefit, read How Work Affects Your Benefits(Publication No. 05-10069). This pamphlet has a list of thecurrent annual and monthly earnings limits.Your benefits may be taxableAbout 40 percent of people who get Social Security haveto pay income taxes on their benefits. For example: If you file a federal tax return as an “individual,”and your combined income* is between 25,000and 34,000, you may have to pay taxes on up to50 percent of your Social Security benefits. If yourcombined income* is more than 34,000, up to 85percent of your Social Security benefits is subject toincome tax. If you file a joint return, you may have to pay taxeson 50 percent of your benefits if you and your spousehave a combined income* between 32,000 and 44,000. If your combined income* is more than 44,000, up to 85 percent of your Social Securitybenefits is subject to income tax. If you’re married and file a separate return, you’llprobably pay taxes on your benefits.12

At the end of each year, we’ll mail you a Social SecurityBenefit Statement (Form SSA-1099) showing the amountof benefits you received. Use this statement when youcomplete your federal income tax return to find out if youmust pay taxes on your benefits.Although you’re not required to have Social Securitywithhold federal taxes, you may find it easier than payingquarterly estimated tax payments.For more information, read Tax Guide for Seniors (IRSPublication No. 554) and Social Security and EquivalentRailroad Retirement Benefits (IRS Publication No. 915) atwww.irs.gov/publications, or call the Internal RevenueService’s toll-free telephone number, 1-800-829-3676.NOTE: On the 1040 tax return, your “combined income”is the sum of your adjusted gross income plus nontaxableinterest plus half of your Social Security benefits.Pensions from work not covered bySocial SecurityIf you get a pension from work for which you paid SocialSecurity taxes, that pension won’t affect your SocialSecurity benefits. However, if you get a retirement ordisability pension from work not covered by SocialSecurity — for example, the federal civil service,some state or local government employment, or workin a foreign country — we may reduce your SocialSecurity benefit.Government workers, who are eligible for Social Securitybenefits on the earnings record of a spouse, can readGovernment Pension Offset (Publication No. 05-10007)for more information. People who worked in anothercountry, or government workers who are also eligiblefor their own Social Security benefits, can read WindfallElimination Provision (Publication No. 05-10045).13

Leaving the United StatesIf you’re a U.S. citizen, you can travel to, or live in, mostforeign countries without affecting your Social Securitybenefits. T

Retirement Estimator to get immediate and personalized retirement benefit estimates to help you plan for your retirement. The online Retirement Estimator is a convenient and secure financial planning tool that eliminates the need to manually key in years of earnings information. The estimator will also let you create “what if” scenarios.

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