Social Security Administration

48 Million People48 Million People

30.2 millionRetired workers

3 milliondependents

30.2 millionRetired workers

3 milliondependents

6.3 million disabledWorkers, 1.7 million

dependents

5.0 million widows/Widowers, mothers/

Fathers (11.0%)

6.8 millionsurvivors

2.9 million wives &Husbands (6.3%)

Who Gets Benefits from Social Security?Who Gets Benefits from Social Security?

Payments to

Beneficiaries

Workers&

Employers

Who Pays for Social Security?Who Pays for Social Security?

The Social Security StatementThe Social Security Statement

Earning Social Security “Credits”

$1,050 earnings = one credit in 2008

Can earn maximum of four per year

40 credits needed for retirement benefits

Social Security benefits based on earnings: Step 1 - Adjust wages for inflation

Step 2 - Average over most of your working lifetime--(Your highest 35 years)

Step 3 - Result is “average indexed monthly earnings”

How Retirement Benefits Are Figured

Retirement Age

Can take reduced benefits at 62

To receive unreduced benefit,

must wait until

“Full Retirement Age”

Full Retirement Age

Year of Birth Full Retirement Age 1937 65 1938 65 & 2 months 1939 65 & 4 months 1940 65 & 6 months 1941 65 & 8 months 1942 65 & 10 months 1943-1954 66 1955 66 & 2 months 1956 66 & 4 months 1957 66 & 6 months 1958 66 & 8 months 1959 66 & 10 months 1960 & later 67

Born between 1943-1954

Full Retirement Age

66

Percent of full benefit payable 62

75% of Age 66 Amount

How Does Work Affect Benefits?

You Can Work & Still Receive Benefits

If You Are You Can If You Make More,

Make Up To Some Benefits Will

Be Withheld

Under FRA $13,560/yr. $1 for ($1130/mo.)

every $2

Year of FRA $36,120/yr. $1 for ($3,010/mo.) every $3

Month of FRA No Limit No Limit

and Above

What do we count as “earnings”

Wages or business income--not pensions or investments

Age 63 - Retirement Date June 2008

Salary $53,920/12*6=$26,960

Report to SSA $26,960-$13,560 (Allowable

Amount) $13,400 / 2 = $6,700

$6700 excess/$670 (Monthly SSA benefit)

= 10 checks withheld

Hold Jan to Oct ~ Pay Nov to Dec

Full Retirement Age 66 October 2008 Retirement Date June 2008

Salary $95,280/12 * 6 = $47,640

Report to SSA $47,640-$36,120 (Allowable Amount) $11,520 / 3 = $3,840

$3,840 excess/$1,280 (monthly SSA Benefit) = 3 checks withheld

Hold January to March 2008 ~ Pay April to December 2008

Necessary Evidence for Filing

Social Security Number, each applicant Birth certificate W-2 or self-employment tax return Future earnings estimate Bank information for direct deposit Information re marriages, divorces, etc. Information about military, railroad service

Starting the Application Process

Call toll-free 1-800-772-1213

Available business days, 7:00 a.m. to 7:00 p.m.

Set up telephone or in-office appointment

http://www.socialsecurity.gov

Who to Contact

For help with application:

- Call SSA at 1-800-772-1213, or www.socialsecurity.gov

For information on the PDP- Call CMS at 1-800-

MEDICARE, or www.medicare.gov

Local Offices

1234 Market Street 3901 Market Street 3336 S Broad Street 2929 North Broad Street 2373 Welsh Road 3400 Aramingo Avenue 6120 Woodland Avenue 1514 W Cecil B Moore Avenue 5000 Wissahickon Avenue