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