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Early Retirement
(Permanently Reduced Benefits) |
Full Retirement
(Full Benefits)
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Delay Retirement
(Permanently Increased Benefits) |
| Eligibility for Benefits |
A worker is eligible for early retirement benefits at age 62. Note: If poor health forces a person to retire early, he or she should apply for Social Security disability benefits. The amount of disability benefits is generally the same as full retirement benefits. |
Full retirement age (FRA) is when a worker can retire and collect full retirement benefits (assuming sufficient work credits). For a person born in 1937 or earlier, the full retirement age is 65. Full retirement age increases gradually until it reaches age 66 in 2009,k and age 67 in 2027. (See below) |
Delayed retirement is available for a worker over the full retirement age. At age 70, the worker automatically receives benefits. Note: The worker should remember to sign up for Medicare at age 65 regardless of when he or she retires. |
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| Age and Benefit Payments |
Early retirement permanently reduces monthly benefits, even after full retirement age. A permanent benefit reduction of 5/9 of 1% is imposed for every full month benefits are received prior to full retirement age. The reduction increases as full retirement age increases. When the phase-in to a full retirement of age 67 in the year 2027 is complete, early retirement of age 62 will yield 70% of the full benefit a person is entitled to at full retirement age. |
Benefits begin: |
Maximum montly benefits
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Benefits are increased by a monthly percentage. If the worker delays retirement. Also, each additional year a person works adds another year of earnings to the Social Security record, possibly resulting in higher lifetime earnings and a higher benefit amount. |
2006 (FRA: 65 years, 8 months)
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$2,053 |
2007 (FRA: 65 years, 10 months) |
$2,116 |
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Worker born: |
% of full benefits received if retired at age 62: |
Worker born: |
% of full benefits received if retired at age 62: |
Worker born: |
Min credits needed: |
Worker born: |
Retire & collect full benefits at: |
Worker born: |
Percent Increase Each Year |
Worker born: |
Percent increase each year: |
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1937 & earlier |
80.000% |
1955 |
74.167% |
1937 and earlier
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65 yrs, 0 mths
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1955 |
66 yrs, 2 mths |
1917-1924 |
3.0% |
1935 - 1936 |
6.0% |
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1938 |
79.167 |
1956 |
73.333 |
1938 |
65 yrs, 2 mths |
1956 |
66 yrs, 4 mths |
1925-1926 |
3.5 |
1937-1938 |
6.5 |
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1939 |
78.333 |
1957 |
72.500 |
1939 |
65 yrs, 4 mths |
1957 |
66 yrs, 6mths |
1927-1928 |
4.0 |
1939-1940 |
7.0 |
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1940 |
77.500 |
1958 |
71.667 |
1940 |
65 yrs, 6 mths |
1958 |
66 yrs, 8 mths |
1929-1930 |
4.5 |
1941-1942 |
7.5 |
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1941 |
76.667 |
1959 |
70.833 |
1941 |
65 yrs, 8 mths |
1959 |
66 yrs, 10 mths |
1931-1932 |
5.0 |
1943 & later |
8.0 |
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1942 |
75.833 |
1960 & later |
70.000 |
1942 |
65 yrs, 10 mths |
1960 & later |
67 yrs, 0 mths |
1933-1934 |
5.5 |
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1943-1954 |
75.000 |
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1943-1954 |
66 yrs, 0 mths |
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Social Security Credits
Needed for Benefits
(Used to determine benefits eligibility)
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The same credits are needed for full retirement. See the next column. |
Worker born: |
Minimum credits needed |
Nonprofit Employees |
The same credits are needed as for full retirement. See the previous column. |
| Age on 1/1/84 |
Min credits needed |
1929 or later |
40 |
60 or over |
6 |
1928 |
39 |
59 |
8 |
1927 |
38 |
58 |
12 |
1926 |
37 |
57 |
16 |
1925 |
36 |
55 or 56 |
20 |
1924 |
35 |
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| Earning Limits/ Reduction of Benefits |
Years before individual reaches full retirement age:
Benefits reduced by $1 for each $2 earned over:
2006: $12,480
2007: $12,960
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Full retirement age:
* Exempt from earnings limits beginning the month the individual attains full retirement age (FRA)
* For the months in the calendar year the individual reaches FRA but before attaining FRA, benefits are reduced by $1 for each $3 earned above:
2006: $33,240
2007: $34,440
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| Average 2007 Monthly Social Security Benefit |
N/A |
Retired Worker: $1,044 (Maximum - $2,116 )
Retired worker and spouse: $1,713 |
N/A |
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| Medicare Insurance (2007) |
The worker is not eligible for Medicare until he or she is age 65, is disabled or has permanent kidney failure |
Part |
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Description |
Premiums |
Deductible/Coinsurance Amount |
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| A |
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Medicare Hospital Insurance. Helps pay for inpatient hospital care, care in a skilled nursing facility following a hospital stay, home health care and blood. |
* None for most people because they or a spouse has 40 or more quarters of Medicare coverage.
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$226/mo for people having 30-39 quarters
of Medicare coverage.
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$410/mo for other eligible individuals |
Hospital stay:
* $992 for days 1-60
* $248/day for days 61-90
* $496/day for days 91-150
* All costs beyond 150 days.
Skilled nursing facility:
* $124/day for days 21-100
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| B |
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Medicare Medical Insurance. Helps pay for doctors' services and a wide range of medical services and supplies. |
$93.50 per month (higher for married couples with income > $160,000 and unmarried > $80,000) |
$131 per year plus 20% of Medicare-approved amount for services after meeting the $131 deductible. |
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Family Benefits (Working Living) |
Survivor Benefits (Worker Deceased) |
Disability Benefits (Worker Disabled) |
| Eligibility for Benefits |
When a worker begins collecting Social Security retirement benefits, the other family members who may also be eligible for benefits are :
* The spouse of the worker if he or she is age 62 or older (unless individually entitled to a Social Security benefit over one-half the worker's full benefit).
* The spouse of the worker at any age if he or she is caring for the worker's child (the child must be under age 16 or disable and receiving Social Security benefits).
* The worker's children , if they are unmarried and:
- Under age 18.
- Under age 19 but in elementary or secondary school as a full-time student or
- Age 18 or older and severely disabled (the disability must have started before age 22).
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Family members of a deceased worker who may collect benefits if the worker earned enough credit while working:
* Widow(er) age 60 or older.
* Widow(er)
age 50 or older and disabled.
* Widow(er) at any age if he or she is caring for the worker's child under age 16 or a disabled child who is receiving Social Security benefits.
* Children if they are unmarried and:
- Under age 18
- Under age 19 but in an elementary or secondary school as a full-time student or
- Age 18 or older and severely disabled (the disability must have started before age 22).
* Dependent parents at age 62 or older.
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Disability benefits are paid to a fully insured worker at any age. At full retirement, if a worker is receiving disability benefits, they become retirement benefits, although the amount remains the same.
Family members who may also be eligible for benefits:
* A spouse of the worker if he or she is age 62 or older (unless individually entitled to a Social Security benefit over one-half the worker's full benefit).
* A spouse of the worker of any age if he or she is caring for the worker's child (the child must be under age 16 or disabled and receiving Social Security benefits).
* The worker's children, if they are unmarried and:
- Under age 18.
- Under age 19 but in elementary or secondary school as a full-time student or
- Age 18 or older and severely disabled (the disability must have started before age 22).
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| Ex-Spouse (Divorced) Benefits |
An ex-spouse (even if the worker is remarried) is entitled to benefits if he or she:
* Was married to the worker for at least 10 years
* Is at least age 62 and unmarried.
* Has been divorced at least two years and
* Is not individually entitled to a retirement or disability benefit over one-half the worker's full benefit.
NOTE:
The amount of benefits an ex-spouse receives does not affect the amount of benefits the worker's family receives.
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An ex-spouse (even if the worker remarried) is entitled to benefits if he or she:
* Was married to the worker for at least 10 years.
* Is unmarried and at least age 60 (or age 50 if disabled).
* is not entitled to a widow(er)'s benefits.
Is not entitled to a retirement benefit over one-half the worker's full benefit or
* Is caring for the deceased worker's child (who is entitled to child's benefits based on the worker's record, and is under 16 or disabled).
NOTE:
The amount of benefits an ex-spouse receives does not affect the amount of benefits the worker's family receives.
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An ex-spouse (even if the worker remarried) is entitled to benefits if he or she:
* Is unmarried and at least age 62
* Is not individually entitled to a retirement or disability benefit over one-half the worker's full benefit and
* Was married to the worker for at least 10 years
NOTE: The amount of benefits an ex-spouse receives does not affect the amount of benefits the worker's family receives. |
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| Credits Needed for Benefits |
The same number of credits
needed for a worker to receive
his or her retirement benefits
are needed by the worker in
order for his or her family to
receive family benefits.
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Worker born: Minimum quarters of coverage needed:
1929 or earlier... One credit needed for each year after
1950, up to the year of death.
1930 or later... One credit needed for each year after
age 21, up to the year of death.
The above rule applies to workers who die before age 62. For those who die after age 62, count only the year
between 1950 (or the year of attainment of age 21, if later) and age 62.
Special rule for worker who dies without enough credits:
Social Security survivor benefits can be paid to the worker's children, and the worker's sopuse who is caring for the children, if the worker has credits in the three years just before his or her death.
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Disabled at age: Minimum credits needed:
Before age 24... Six credits earned in the
three-year period ending
when the disability began.
Age 24-30... Credits for working half the
time between age 21 and
the time of disability.
For exampled, a worker
disabled at age 27 needs 3
years of work (12 credits) out
of past 6 years (between age
21 and age 27).
Age 31 or older... Number of credits needed
dependent on age, and the
worker must have earned 20
credits in the 10 years
immediately before the
disability began (unless the
worker is blind). See the
chart below for credits
needed if disabled at age
31 or older.
Born after 1929, Credits needed to collect
disabled at age disability benefits:
31 - 42................................................20
44........................................................22
46........................................................24
48........................................................26
50........................................................28
52........................................................30
54........................................................32
56........................................................34
58........................................................36
60........................................................38
62 or older........................................
40
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| Amount of Payment |
* The amount of payment to each qualified person is a percentage of the worker's primary insurance amount (PIA).
* The total amount payable to the family is limited to family maximum benefit (equal to about 150% to 180% of the retiree's benefit).
* The total amount payable does not include the amount payable to an ex-spouse.
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* The amount of payment to each qualified person is a percentage of the worker's PIA.
*The total amount payable to survivors is limited to the family maximum benefit (equal to about 150% to 180% of the decedent's benefit).
* The total amount payable does not include the amount payable to an ex-spouse.
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The waiting period for disability benefits (a full five months) begins with the first full month after the date the disability is determined to have begun. Benefits begin in the sixth full month.
* The amount of payment to each qualified person is a percentage of the worker's PIA.
* The total amount payable to the family is limited to the family maximum benefit (about 150% to 180% of the disabled's benefit) and does not include the amount payable to an ex-spouse.
* the amount is the same as the amount of the retirement benefit at age 65.
* If disabled, benefits may be reduced if eligible for other disability benefits.
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| Average 2007 Monthly Benefits |
* Retired worker: $ 1,044.
* Retired worker and spouse: $1,713.
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* Widow(er) of worker: $1,008.
* Widow(er) of worker with two children: $ 2,168.
* A one-time death benefit of $255 is payable to the widow(er) or to minor children.
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* Disabled worker: $979.
* Disabled worker, spouse, children: $1,646.
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