Retirement Benefits 10035 EN 05
User Manual: 10035
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Social Security and your retirement plan
Social Security is part of the retirement plan of almost
every American worker. If you’re among the 96 percent of
workers covered under Social Security, you should know
how the system works. You should also know how much
you’ll receive from Social Security when you retire. This
booklet explains:
• How you qualify for Social Security benets;
• How your earnings and age can affect your benets;
• What you should consider in deciding when to
retire; and
• Why you shouldn’t rely only on Social Security for all
your retirement income.
This basic information on Social Security retirement
benets isn’t intended to answer all questions. For
specic information about your situation, talk with a Social
Security representative.
Your retirement benets
How do you qualify for retirement benets?
When you work and pay Social Security taxes, you earn
“credits” toward Social Security benets. The number of
credits you need to get retirement benets depends on
when 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 to
qualify for benets, the credits will remain on your Social
Security record. If you return to work later, you can add
more credits to qualify. We can’t pay any retirement
benets until you have the required number of credits.
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How much will your retirement benet be?
We base your benet payment on how much you earned
during your working career. Higher lifetime earnings result
in higher benets. If there were some years you didn’t
work or had low earnings, your benet amount may be
lower than if you had worked steadily.
The age at which you decide to retire also affects your
benet. If you retire at age 62, the earliest possible Social
Security retirement age, your benet will be lower than if
you wait. Page 4 explains this policy in more detail.
Online my Social Security account
You can now easily set up a secure online my
Social Security account. This allows you to access your
Social Security Statement to check your earnings and get
your benet estimates. You can also use your online my
Social Security account to request a replacement Social
Security number card (available in some states and the
District of Columbia). If you receive benets, you can also:
• Get your benet verication letter;
• Change your address and phone number;
• Request a replacement Medicare card;
• Request a replacement SSA-1099 or SSA-1042S for
tax season; or
• Start or change your direct deposit.
You can create a my Social Security account if you’re
age 18 or older, have a Social Security number, a valid
U.S. mailing address, and an email address. To create
an account, go to www.socialsecurity.gov/myaccount.
You’ll need to provide some personal information
to conrm your identity; you’ll be asked to choose a
username and password; then you’ll be asked for your
email address. You’ll need to select how you would like
to receive a one-time security code — to a text-enabled
cell phone or to the email address you registered — that
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you will need to enter when you create your account.
Each time you sign in with your username and password,
we will send a one-time security code to your cell phone
or to your email address. The security code is part of
our enhanced security feature to protect your personal
information. Keep in mind that your cell phone provider’s
text message and data rates may apply.
Get personalized retirement benet estimates
You can use our online Retirement Estimator to
get immediate and personalized retirement benet
estimates to help you plan for your retirement. The online
Retirement Estimator is a convenient and secure nancial
planning tool that eliminates the need to manually key
in years of earnings information. The estimator will also
let you create “what if” scenarios. You can, for example,
change your “stop work” dates or expected future
earnings to create and compare different retirement
options.
For more information, read the publication, Online
Retirement Estimator (Publication No. 05-10510), or visit
our website at www.socialsecurity.gov/estimator.
Full retirement age
If you were born in 1950 or earlier, you already are eligible
for your full Social Security benet. The full retirement
age is 66 if you were born from 1943 to 1954. If you were
born from 1955 to 1960, the age at which full retirement
benets are payable increases gradually to age 67. The
following chart lists the full retirement age by year of birth.
Age to receive full Social Security benets
Year of birth Full retirement age
1943-1954 66
1955 66 and 2 months
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Age to receive full Social Security benets
Year of birth Full retirement age
1956 66 and 4 months
1957 66 and 6 months
1958 66 and 8 months
1959 66 and 10 months
1960 and later 67
NOTE: People born on January 1 of any year, refer to the
previous year.
NOTE: Even though the full retirement age is no longer
65, you should sign up for Medicare three months before
your 65th birthday. See pages 14-15 for more information.
Early retirement
You can get Social Security retirement benets as early
as age 62. However, we’ll reduce your benet if you retire
before your full retirement age. For example, if you turn
age 62 in 2017, your benet would be about 25.8 percent
lower than it would be at your full retirement age of 66 and
2 months.
Some people will stop working before age 62. But if they
do, the years with no earnings will probably mean a lower
Social Security benet when they retire.
NOTE: Sometimes health problems force people to
retire early. If you can’t work because of health problems,
consider applying for Social Security disability benets.
The disability benet amount is the same as a full,
unreduced retirement benet. If you’re getting Social
Security disability benets when you reach full retirement
age, we convert those benets to retirement benets.
For more information, read Disability Benets
(Publication No. 05-10029).
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Delayed retirement
You can choose to keep working beyond your full
retirement age. If you do, you can increase your future
Social Security benets in two ways.
Each extra year you work adds another year of earnings
to your Social Security record. Higher lifetime earnings
can mean higher benets when you retire.
Also, your benet will increase a certain percentage
from the time you reach full retirement age, until you
start receiving benets, or until you reach age 70. The
percentage varies depending on your year of birth. For
example, if you were born in 1943 or later, we’ll add 8
percent to your benet for each year you delay receiving
Social Security benets beyond your full retirement age.
NOTE: If you decide to delay your retirement, be sure to
sign up for Medicare at age 65. In some circumstances,
medical insurance costs more if you delay applying for it.
Other information about Medicare is on pages 14-16.
Deciding when to retire
Choosing when to retire is an important and personal
decision. No matter the age you retire, contact Social
Security in advance to learn your choices and make the
best decision. Sometimes, your choice of a retirement
month could mean higher benet payments for you and
your family.
In deciding when to retire, remember that nancial experts
say you’ll need 70 to 80 percent of your preretirement
income to have a comfortable retirement. Since Social
Security replaces only about 40 percent of preretirement
income for the average worker, having pensions, savings,
and investments are very important.
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Apply for benets about three months before you want
your benets to start. If you’re not ready to retire, but
are thinking about doing so soon, visit Social Security’s
website to use our convenient and informative retirement
planner at www.socialsecurity.gov/retire.
Retirement benets for widows and widowers
Widows and widowers can begin getting Social Security
benets at age 60, or at age 50, if disabled. Widows and
widowers can take reduced benets on one record, and
then switch to full benets on another record later. For
example, a woman can take a reduced widow’s benet
at 60 or 62, and switch to her own full retirement benet
at full retirement age. You need to talk to Social Security
about your choices, because the rules may be different for
your claim.
Family benets
Benets for family members
If you’re getting Social Security retirement benets, some
members of your family can also get benets, including:
• Spouses age 62 or older;
• Spouses younger than 62, if they are taking care of a
child entitled on your record who is younger than age
16 or disabled;
• Former spouses, if they are age 62 or older (See
“Benets for a divorced spouse” on page 9.);
• Children up to age 18, or up to 19 if full-time students
and 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 adopted
child) after you begin getting benets, let us know about
the child. Then we’ll decide if the child is eligible for
benets.
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NOTE: Children’s benets are available only to unmarried
children. Sometimes, we can pay benets to a disabled
child who marries someone also disabled since childhood.
Spouse’s benets
Spouses who never worked or have low earnings can
get up to half of a retired worker’s full benet. If you’re
eligible for both your own retirement benets and spousal
benets, we always pay your own benets rst. If your
benets as a spouse are higher than your own retirement
benet, you’ll get a combination of benets equaling the
higher spouse benet.
For example:
Mary Ann qualies for a retirement benet of $250 and a
spouse’s benet of $400. At her full retirement age, she
will get her own $250 retirement benet. We also will add
$150 from her spouse’s benet, for a total of $400. If she
takes her retirement benet before her full retirement age,
we’ll reduce both amounts.
If you are at least full retirement age and qualify for your
own retirement benets and also for benets as a spouse
(or divorced spouse), you can choose to restrict your
application and apply for one of the benets and delay
applying for the other until a later date.
Under a law passed in 2015, people born on or after
January 2, 1954 no longer have this option. If they qualify
for both their own retirement and spouse’s (or divorced
spouse’s) benets, they must apply for both benets. This
is called “deemed ling.” If you le for one benet, you are
“deemed” to le for the other one, too, even if you don’t
become eligible for it until later.
If you’re receiving a pension based on work on which
you didn’t pay Social Security taxes, we may reduce your
spouse’s benet. More information on pensions from work
not covered by Social Security is on page 13.
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If spouses get Social Security retirement benets before
they reach full retirement age, we reduce the benet.
The amount we reduce the benet depends on when the
person reaches full retirement age.
For example:
• If full retirement age is 65, a spouse can get 37.5
percent of the worker’s unreduced benet at age 62;
• If full retirement age is 66, a spouse can get 35 percent
of the worker’s unreduced benet at age 62;
• If full retirement age is 67, a spouse can get 32.5
percent of the worker’s unreduced benet at age 62.
The benet increases at later ages up to the maximum of
50 percent at full retirement age. If full retirement age is
other than those shown here, at age 62 the benet will fall
between 32.5 percent and 37.5 percent.
Your spouse can get full benets, regardless of age, if
taking care of a child entitled on your record. The child
must be under age 16, or disabled (before age 22).
NOTE: Your current spouse can’t get spouse’s benets
until you le for retirement benets.
Children’s benets
Your dependent child can get benets on your earnings
record when you start your Social Security retirement
benets. They can get up to half of your full benet. To be
eligible, they must be your biological child, adopted child,
or dependent stepchild. (Sometimes, your child could also
be eligible for benets on their grandparent’s earnings.)
To get benets, your child must be:
• Unmarried;
• Younger than age 18;
• 18-19 years old and a full-time student (no higher than
grade 12); or
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• 18 or older and disabled before age 22.
NOTE: Disabled children whose parents have limited
income or resources may be eligible for Supplemental
Security Income benets. For more information, visit our
website or call our toll-free number.
Maximum family benets
If you have children eligible for Social Security, each will
get up to half of your full benet. But there’s a limit to how
much money we can pay to you and your family. This
limit varies between 150 and 180 percent of your own
benet payment. If the total benets due to your spouse
and children are more than this limit, we’ll reduce their
benets. Your benet won’t be affected.
Benets for a divorced spouse
Your divorced spouse can get benets on your Social
Security record if the marriage lasted at least 10 years.
Your divorced spouse must be 62 or older and unmarried.
The benets he or she gets doesn’t affect the amount you
or your current spouse can get.
Also, your former spouse can get benets even if you’re
not retired. You both must be at least 62 and divorced at
least two years.
What you need to know when you’re eligible
for retirement benets
How do you sign up for Social Security?
You can apply for retirement benets online at
www.socialsecurity.gov, or call our toll-free number,
1-800-772-1213 (TTY 1-800-325-0778). Or you can make
an appointment to visit any Social Security ofce to apply
in person.
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Depending on your circumstances, you’ll need some or
all the documents listed below. Don’t delay in applying for
benets if you don’t have all the information. If you don’t
have a document you need, we can help you get it.
Information and documents you’ll need, include:
• Your Social Security number;
• Your birth certicate;
• Your W-2 forms or self-employment tax return for last
year;
• Your military discharge papers if you had military
service;
• Your spouse’s birth certicate and Social Security
number if they’re applying for benets;
• Your children’s birth certicates and Social Security
numbers, if you’re applying for children’s benets;
• Proof of U.S. citizenship or lawful alien status if you (or
a spouse or child applying for benets) were not born
in the United States; and
• The name of your nancial institution, the routing
number, and your account number for direct deposit.
If you don’t have an account at a nancial institution,
or prefer getting your benets on a prepaid debit
card, you can get a Direct Express® card. For more
information, visit www.GoDirect.org.
You must submit original documents or copies certied
by the issuing ofce. You can mail or bring them to
Social Security. We’ll make photocopies and return your
documents.
Right to appeal
If you disagree with a decision made on your claim,
you can appeal it. For an explanation of the steps
you can take, read The Appeals Process
(Publication No. 05-10041).
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You can handle your own appeal with free help
from Social Security, or you can choose to have a
representative help you. We can give you information
about organizations that can help you nd a
representative. For more information about selecting
a representative, read Your Right to Representation
(Publication No. 05-10075).
If you work and get benets at the same time
You can continue to work and still get retirement benets.
Your earnings in (or after) the month you reach your full
retirement age won’t reduce your Social Security benets.
We’ll reduce your benets, however, if your earnings
exceed certain limits for the months before you reach full
retirement age. (See the chart on pages 3-4 to nd your
full retirement age.)
Here is how it works:
If you’re younger than full retirement age, we’ll deduct $1
in benets for each $2 you earn above the annual limit.
In the year, you reach your full retirement age, we’ll
reduce your benets $1 for every $3 you earn over an
annual limit. This reduction continues until the month you
reach full retirement age. Once you reach full retirement
age, you can keep working and we won’t reduce your
Social Security benet no matter how much you earn.
If, during the year, your earnings are higher or lower than
you estimated, let us know as soon as possible so we can
adjust your benets.
A special monthly rule
A special rule applies to your earnings for one year,
usually your rst year of retirement. Under this rule,
you can get a full Social Security check for any month
you earn under a certain limit, regardless of your yearly
earnings.
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If you want more information on how earnings affect your
retirement benet, read How Work Affects Your Benets
(Publication No. 05-10069). This pamphlet has a list of the
current annual and monthly earnings limits.
Your benets may be taxable
About 40 percent of people who get Social Security have
to pay income taxes on their benets. For example:
• If you le a federal tax return as an “individual,”
and your combined income* is between $25,000
and $34,000, you may have to pay taxes on up to
50 percent of your Social Security benets. If your
combined income* is more than $34,000, up to 85
percent of your Social Security benets is subject to
income tax.
• If you le a joint return, you may have to pay taxes
on 50 percent of your benets if you and your spouse
have 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 Security
benets is subject to income tax.
• If you’re married and le a separate return, you’ll
probably pay taxes on your benets.
At the end of each year, we’ll mail you a Social Security
Benet Statement (Form SSA-1099) showing the amount
of benets you received. Use this statement when you
complete your federal income tax return to nd out if you
must pay taxes on your benets.
Although you’re not required to have Social Security
withhold federal taxes, you may nd it easier than paying
quarterly estimated tax payments.
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For more information, call the Internal Revenue Service’s
toll-free telephone number, 1-800-829-3676, to ask
for Publication 554, Tax Guide for Seniors, and
Publication 915, Social Security and Equivalent Railroad
Retirement Benets.
* On the 1040 tax return, your “combined income” is
the sum of your adjusted gross income plus nontaxable
interest plus half of your Social Security benets.
Pensions from work not covered by
Social Security
If you get a pension from work for which you paid Social
Security taxes, that pension won’t affect your Social
Security benets. However, if you get a pension from work
not covered by Social Security — for example, the federal
civil service, some state or local government employment,
or work in a foreign country — we may reduce your Social
Security benet.
For government workers, who are eligible for Social
Security benets on the earnings record of a spouse, read
Government Pension Offset (Publication No. 05-10007)
for more information. For people who worked in another
country, or government workers who are also eligible
for their own Social Security benets, read Windfall
Elimination Provision (Publication No. 05-10045).
Leaving the United States
If you’re a U.S. citizen, you can travel to, or live in, most
foreign countries without affecting your Social Security
benets. There are, however, a few countries where we
can’t send Social Security payments. These countries
are Azerbaijan, Belarus, Cuba, Georgia, Kazakhstan,
Kyrgyzstan, Moldova, North Korea, Tajikistan,
Turkmenistan, Ukraine, Uzbekistan, and Vietnam. We
can make exceptions, however, for certain eligible
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beneciaries in countries other than Cuba and North
Korea. For more information about these exceptions,
contact your local Social Security ofce.
If you work outside the United States, different rules apply
in deciding if you can get benets.
For more information, read Your Payments While You Are
Outside The United States (Publication No. 05-10137).
A word about Medicare
Medicare is a health insurance plan for people who
are age 65 or older. People who are disabled, or have
permanent kidney failure, or amyotrophic lateral sclerosis
(Lou Gehrig’s disease), can get Medicare at any age.
When should I apply for Medicare?
If you’re not already getting benets, you should contact
Social Security about three months before your 65th
birthday to sign up for Medicare. You should sign up for
Medicare even if you don’t plan to retire at age 65.
If you’re already getting Social Security benets or
Railroad Retirement Board benets, we’ll contact you
a few months before you become eligible for Medicare
and send you information. If you live in one of the 50
states, Washington, D.C., the Northern Mariana Islands,
Guam, American Samoa, or the U.S. Virgin Islands,
we’ll automatically enroll you in Medicare Parts A and B.
However, because you must pay a premium for Part B
coverage, you can choose to turn it down.
We will not automatically enroll you in a Medicare
prescription drug plan (Part D). Part D is optional and you
must elect this coverage. For the latest information about
Medicare, visit the website or call the toll-free number
listed on the next page.
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Medicare
Website: www.Medicare.gov
Toll-free number: 1-800-MEDICARE
(1-800-633-4227)
TTY number: 1-877-486-2048
NOTES:
If you don’t enroll in Part B and Part D when you’re rst
eligible, you may have to pay a late enrollment penalty for
as long as you have Part B and Part D coverage. Also,
you may have to wait to enroll, which will delay coverage.
Residents of Puerto Rico or foreign countries won’t
receive Part B automatically. They must elect this benet.
“Extra Help” with Medicare prescription
drug costs
If you have limited income (tied to the federal poverty
level) and limited resources, you may qualify for Extra
Help to pay for your prescription drugs under Medicare
Part D. Social Security’s role in this program is to:
• Help you understand how you may qualify;
• Help you complete the Extra Help application; and
• Process your application.
If you apply for Extra Help, we also will start an
application for the Medicare Savings Programs, unless
you tell us not to. To see if you qualify or to apply, call
Social Security’s toll-free number, or visit our website at
www.socialsecurity.gov/extrahelp.
Help with other Medicare costs
If you have limited income and resources, your state may
pay your Medicare premiums and, in some cases, other
“out-of-pocket” medical expenses, such as deductibles
and coinsurance.
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Only your state can decide whether you qualify for help
from the Medicare Savings Programs. To nd out, contact
your state or local medical assistance (Medicaid) agency,
or social services ofce.
Medicare has four parts
• Medicare Part A (hospital insurance) helps pay for
inpatient hospital care and certain follow-up services.
• Medicare Part B (medical insurance) helps pay for
doctors’ services, outpatient hospital care, and other
medical services.
• Medicare Part C (Medicare Advantage plans) are
available in many areas. People with Medicare
Parts A and B can choose to receive all their health
care services through a private insurance company
approved by Medicare to provide this coverage.
• Medicare Part D (Medicare prescription drug coverage)
helps cover the cost of prescription drugs.
For more information, read Medicare
(Publication No. 05-10043).
Contacting Social Security
There are several ways to contact Social Security,
including online, by phone, and in person. We’re here to
answer your questions and to serve you. For more than
80 years, Social Security has helped secure today and
tomorrow by providing benets and nancial protection for
millions of people throughout their life’s journey.
Visit our website
The most convenient way to conduct Social Security
business from anywhere at any time, is to visit
www.socialsecurity.gov. There, you can:
• Create a my Social Security account to review your
Social Security Statement, verify your earnings, print
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a benet verication letter, change your direct deposit
information, request a replacement Medicare card, get
a replacement 1099/1042S, and more;
• Apply for Extra Help with Medicare prescription drug
plan costs;
• Apply for retirement, disability, and Medicare benets;
• Find copies of our publications;
• Get answers to frequently asked questions; and
• So much more!
Call us
If you don’t have access to the internet, we offer many
automated services by telephone, 24 hours a day, 7 days
a week. Call us toll-free at 1-800-772-1213 or at our TTY
number, 1-800-325-0778, if you’re deaf or hard of hearing.
If you need to speak to a person, we can answer your
calls from 7 a.m. to 7 p.m., Monday through Friday. We
ask for your patience during busy periods since you may
experience higher than usual rate of busy signals and
longer hold times to speak to us. We look forward to
serving you.
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Social Security Administration | Publication No. 05-10035
ICN 457500 | Unit of Issue — HD (one hundred)
June 2017 (Recycle prior editions)
Retirement Benefits
Produced and published at U.S. taxpayer expense
Printed on recycled paper
