This presentation produced at U. S. taxpayer expense

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1 Social Security This presentation produced at U. S. taxpayer expense

2 On August 14, 1935, President Roosevelt signs the Social Security Act in the Cabinet Room of the White House. 2

3 History of Social Security Programs 1935 Retirement Insurance 1939 Survivors Insurance 1956 Disability Insurance 3

4 Other Programs 1965 Medicare Program 1972 Supplemental Security Income 2003 Medicare Prescription Drug Coverage 2010 Patient Protection and Affordable Care Act 4

5 America is Getting Older U.S. Population Age 65 & Older 2035 (21% of total population) 2015 (15% of total population) 1946 (7% of total population) Million 5

6 Who Gets Benefits from Social Security? 60 million people 8.9 million Disabled Workers and 1.9 million Dependents 4.2 million Widows/Widowers 1.9 million Children of Deceased Workers 40 million Retired Workers and 3 million Dependents 6

7 Who Pays for Social Security? Today s Workers & Employers Today s Beneficiaries 7

8 The Number of Workers per Beneficiary is Decreasing

9 Trillions of CPI-Indexed 2015 Dollars Social Security Trust Funds Will Be Able to Pay Only About 79 Cents for Each Dollar of Scheduled Benefits after 2034 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 ($0.50) Calendar Year 9

10 How Do You Qualify for Retirement Benefits? You need to work to earn Social Security credits Each $1,260 in earnings gives you one credit You can earn a maximum of 4 credits per year Example: To earn 4 credits in 2016, you must earn at least $5,040. Earning 40 credits (10 years of work) throughout your working life will qualify you for a retirement benefit. 10

11 Your Age at the Time You Elect Retirement Benefits Affects the Amount 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 11

12 Full Retirement Age Year of Birth Full Retirement Age 1937 or earlier & 2 months & 4 months & 6 months & 8 months & 10 months & 2 months & 4 months & 6 months & 8 months & 10 months 1960 or later 67 12

13 Your Age at the Time You Elect Retirement Benefits Affects the Amount For example, if you were born from 1943 through 1954: Age 62 75% of benefit Age 66 Age % of benefit 132% of benefit 13

14 Thinking of Retiring? Deciding what is the right age to retire Check online Social Security Statement How working after retirement can affect benefits Medicare considerations Online retirement estimator How to apply online for benefits 14

15 A Foundation for Planning Your Future OTHER INCOME SAVINGS & INVESTMENTS PENSION SOCIAL SECURITY 15

16 Use the Retirement Estimator Convenient, secure, and quick financial planning tool Immediate and accurate benefit estimates Lets you create What if scenarios based on different ages and earnings 16

17 my Social Security Your Online Account... Your Control... 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. 17

18 What is myra? A new retirement savings account developed by the U.S. Department of the Treasury Designed for people who don t have access to a retirement savings plan at work, or who lack options to save It is a Roth IRA that invests in new U.S. Treasury retirement savings bonds Open an account, build up savings to $15,000, then transfer or roll over savings to a private-sector Roth IRA

19 In Addition to the Retiree, Who Else Can Get Benefits? Your Child Not married under 18 (under 19 if still in high school) Not married and disabled before age 22 Your Spouse Age 62 or older At any age, if caring for a child under age 16 or disabled 19

20 In Addition to the Retiree, Who Else Can Get Benefits? Your Ex-Spouse Marriage lasted at least 10 years Ex-spouse 62 or older and unmarried Divorced at least two years and you and your ex-spouse are at least 62, he or she can get benefits even if you are not retired Ex-spouse s benefit amount has no effect on the amount you or your current spouse can get 20

21 Your Benefits Can Be Taxable About 40 percent of people who get Social Security pay income taxes on their benefits. At the end of each year, you ll receive a Social Security Benefit Statement (Form SSA-1099). Use this statement to complete your Federal income tax return to find out if you have to pay taxes on your benefit. For more information, call the IRS:

22 Applying for Retirement Benefits You can apply online for Retirement Benefits by visiting and clicking Benefits 22

23 Who Can Get Survivors Benefits? Your Child if: Not married under age 18 (under 19 if still in high school) Not married and disabled before age 22 Widow or Widower: Full benefits at full retirement age Reduced benefits at age 60 If disabled as early as age 50 At any age if caring for child under 16 or disabled Remarriage after age 60 (50 if disabled) Divorced widows/widowers may qualify 23

24 Parents Other Survivors Benefits Age 62 and was receiving at least one-half support from deceased worker Lump Sum Death Payment ($255) Most spouses and some children 24

25 Social Security s Disability A medical condition or combination of impairments preventing substantial work for at least 12 months, or expected to result in death. The determination also considers age, education & work experience. 25

26 Who Can Get Disability Benefits? Worker Must have paid into Social Security five out of last 10 years For younger workers, under age 31 less work is required 26

27 Who Can Get Disability Benefits? Child Not married under age 18 (under 19 if still in high school) Not married and disabled before age 22 Spouse At age 62 At any age if caring for child under 16 or disabled Divorced spouses may qualify 27

28 Applying for Disability Benefits You can apply online for Disability Benefits by visiting and clicking Benefits 28

29 Supplemental Security Income (SSI) Who Can Get SSI? Age 65 or older Blind any age Disabled any age Limited income Limited resources 29

30 What Will You Need When Applying for Your Social Security Benefits? Social Security number for each applicant Proof of age (only if date of birth allegation doesn't match Social Security records) Latest W-2 or self-employment tax return Earnings estimate Bank information for direct deposit Information about marriages/divorces Information about military or railroad service 30

31 Medicare Part A - Hospital Insurance Part B - Medical Insurance Part C - Medicare Advantage Plans Part D - Medicare Prescription Drug Coverage 31

32 When Can I Sign Up for Medicare Part B? Medicare Enrollment Periods: Initial at age 65 Special if still working General January-March 32 32

33 Who Can Get Medicare? 65 & older 24 months after entitlement to Social Security disability benefits Amyotrophic Lateral Sclerosis Permanent kidney failure and receive maintenance dialysis or a kidney transplant -or- -or- -or- -or- Exposure to Environmental Health Hazards 33

34 For More Medicare Information MEDICARE ( ) TTY

35 Got Questions?? Visit the website Call the toll-free number Visit a local office Most offices are open to the public Monday, Tuesday, Thursday and Friday from 9 a.m. to 4:00 p.m. and Wednesdays from 9 a.m. to 12:00 p.m., except Federal holidays. 35

36 Voluntary Suspension FAQ What is the change in the law for voluntarily suspending Social Security retirement benefits? If you take your retirement benefit and then ask (on or after April 30, 2016) to suspend it to earn delayed credits, your spouse or dependents (excluding divorced spouses) generally won t be able to receive benefits on your Social Security record during the suspension. You also won t be able to receive benefits on anyone else s record during that time. 36

37 Deemed Filing FAQ What is the change in the law for people who qualify for both Social Security retirement and spouses benefits? If you are eligible for benefits both as a retiree and as a spouse (or divorced spouse), you must file for both benefits. This deemed filing used to apply only before the full retirement age, which is currently 66. Now, deemed filing will apply at any age, if you reach age 62 after January 1,