How are my Social Security benefit amounts calculated?
Do you often question just how your Social Security benefits are calculated? You’re not alone! I’m sure most people assume they just pick numbers out of a hat – and I’m convinced that my idea is not too far off!
The Social Security Administration tells that the calculations to determine how much you are entitled to are, and I quote, “complicated.” And we trust these people with our money…why? They tell that the amount of your benefits are determined by an elaborate formula based entirely on the raw mean (average) of the yearly earnings that you reported from the time you began working.
Just incase this is not difficult enough to understand, the SSA tells that they calculate your average earnings on a different scale based on your age. If you turn 62, or should you become disabled on or before 12/31/1978 then the Social Security Administration averages the dollar value of your previous earnings and then bases the value of the monthly benefits that you are awarded, on this amount.
Now, should you reach age 62 or become disabled on or any time after 1/1/1979, then the SSA divides your earnings up into two specific categories. These categories are determined by the year you earned your wages that you are looking to claim on. The first category includes all wages that you earned before 1951. These wages are credited with the true dollar value up to a certain amount per year. The second category includes all wages earned from the year 1951 on. These years have annual limits placed on earning credits – regardless of how much you have acquired during this time.
Can I keep a job even after I start collecting Social Security benefits?
If you are approaching the age of retirement, or are collecting benefits from dependents and have some questions about still working while receiving these benefits then there is a very simple answer to your questions. We’ll look at if it is permissible to work while receiving your Social Security benefits. This information is useful when planning your employment future or for when discussing your financial future with your financial consultant.
There is a very simple question to this very common question. The short answer is – yes, you absolutely can. In fact, this is very common. If you are past the retirement age and chose to still work you are able to do so without forfeiting any Social Security benefits. There is no limit to the money you can earn when working past retirement either.
Now, on the contrary, if you seek to collect your Social Security benefits prior to the year that you are the age of full retirement as determined by the Social Security Administration, then you will lose $1 of your benefits for every $2 that you earn during a set yearly period. This limit applies solely to any income that you earn working. It does not count on any earnings from anything else like any investments, pension plans or savings accounts. Even if you have a source of rental income, this will not count toward the penalty. These sources of income will not at all affect the amount of Social Security benefits you receive. Be sure to keep this in mind before attempting to claim Social Security before you have reached the age of full retirement.
When can I start collecting Social Security retirement benefits?
If you feel you are considering retirement, or are just curious to know roughly when you are able to retire and claim Social Security retirement benefits you will greatly benefit from the knoweldge about to be presented here. We’ll look into what the retirement age is, as determined by the Social Security Administration and how recent policy change might effect this current determination. This information is defiantly useful when starting to plan retirement or when discussing retirement with your financial advisor.
In the past the Social Security Administration considered the age of retirement to be 65. At this age you would be able to begin accepting retirement benefits from Social Security. The amount of these benefits were determined on the basis that the majority of workers would chose to stop working a full time job, and want to start claiming their retirement benefits at the age of 65.
In recent times, however people are, for the most part living longer, healthier lives. This makes the Social Security Administration feel that the age for retirement is changing because people are choosing to persue active work at and through the age of 65. On this basis, they determined that the policy should change the age that you are able to claim full retirement benefits. They did just that by raising the age that you can claim full retirement benefits to age 67. Noe well that this change only applies to anyone born after the year 1960. If you were born before 1938 then you can still fully retire at age 65. The SSA is attempting to gradually increase this age from 65 to 67 by rolling it out over many years based on the year you were born in.
Who is eligible to collect Social Security benefits?
Confused about Social Security benefits eligibility? You came to the right place to help clarify your confusion. We’ll take a look at why most of the eligibility requirements truly vary from person to person, as well as some clear cut specifics that you will need to know about. This information is great if you are trying to determine your eligibility for these benefits, or help a friend or loved one do the same.
Most of the specific requirements for eligibility to receive Social Security benefits greatly vary based on the type of benefits you are looking into, the age of the person that is seeking these benefits and if you are attempting to claim benefits as a dependant or a survivor. If you are looking to claim as a dependant or survivor, then another factor to help determine eligibility is the age of the worker that you are claiming off of.
The general requirement that holds true for all Social Security programs (not including the Supplemental Security Income or SSI) is that the person who worked to earn the Social Security benefits and whose earnings are being claimed upon and recorded must have worked in what is known as “covered employment” for enough years to be eligible. This means they they earned enough of, what is known in the Social Security system as, “work credits.” This must be completed by the time that the person is seeking to claim retirement, dies or becomes disabled. In the most common situation, this is referring to at least ten years of eligible work.
To claim Social Security Retirement benefits you must be between the ages of 62 and 70 to qualify to start claiming your benefits.
What is a Social Security Statement?
A Social Security Statement is a record of all of the income that you have made and you have paid Social Security taxes on while you were working. Your Social Security Statement also includes a summary of estimated benefits that you and your family should receive because of the aftermentioned earnings.
Statements are provided in two fashions. You can receive an automatic yearly mailed statement. These are sent to anyone working, or anyone who used to work and is aged 25 years and older. If you need a statement at a separate time or before you qualify for an automatic mailing, you can receive one at any time as long as you are working at the present.
You are strongly suggested to keep your Social Security Statement in a very safe place with other essential paperwork because you can use it in numerous ways. This statement can help you when taking care of your financial planning. This is because the statement provides benefit estimates that are essential to planning your future. Once you combine your Social Security Benefits, savings, investments and even pension, you can begin planning a solid financial future.
Another reason your Social Security Statement is critical is because it can help you verify that you have reported all earnings correctly. In addition, it helps you ensure that the Social Security Administration has an accurate record essential information about you, such as you name and date of bitrh. If there is a mistake on such pertinent information, you may have a delay when attemptin to receive the Social Security benefits. Once you notice a mistake, contact the Social Security Administration and request it to be adjusted to ensure that this does not cause any delay.
Lastly, your statement provides information about protection you earn with Social Security. It shows how you are building protection, just incase you should become disabled or die even before you reach the retirement age.
How do I replace a lost Social Security card?
To replace your lost Social Security card there is a certain order of distinct steps to follow.
Step one is to acquire and complete an “Application for a Social Security Card” - this is form SS-5. When completing this step you will need to be able to prove your identity and age. You are not required to prove citizenship or immigration status when replacing a card because the Social Security Administration already has this information on file.
Note well that the SSA will only accept certain document to prove your identity. For the document to be accepted it must have your name and other identifying information about you. If you are citizen of the United States, the SSA will check your driver’s license, state issued non-driver ID card, or a United States passport. If you can not present these forms of identification, the SSA will attempt to verify an employee ID card, school issued ID card, health insurance card (Note: Medicare cards are not accepted), United States military ID or an adoption decree.
If you are not a citizen of the United States, the Social Security Administration will need to verify your current immigration documents. These documents will be from the Department of Homeland Security and include the following forms; I-551 (with your valid, unexpired foreign passport), I-94 (again, with a valid, unexpired foreign passport) or forms 1766 or 1688B (work permit).
For the most part you can complete the process by mail, but if you live in certain areas you must apply at a Social Security Center near you. Be sure to check if this applies to you before starting the process.
What’s the Stimulus Check? How much do I get?
If you are seeking more information about the tax stimulus check, you should find the information presented here very helpful and informative. Specifically, we’ll look at how the check came to be and just how much to expect. After reading the information presented, you should be able to have a better why this check is issued, and you will know have reasonable expectations about how much to expect from the government.
The stimulus check was passed by George Bush in February of 2008 in a plan to stimulate the economy. His plan is that if the government returns money spent on taxes to the taxpayers, they will in turn spend that money in retailers. He feels that this will in time stimulate the economy.
The amount you receive in the form of the stimulus check is determined by how you are filing and who you are filing for. If you are an individual tax payer you can expect your stimulus check to be made out for $600. If you are filing a joint tax return with your spouse you will receive a total of $1200. The plan states that you will also receive $300 for every child you have that was born after December 1990.
Whether the stimulus plan works, or not, as far as the economy goes, the additional return is definitely one to anticipate. When you receive the check, you should keep it’s purpose in mind, and at least make an effort to spend it in retail store. Who knows? It might just work! It’s also very important to know ahead of time how much to expect so when you receive your check you know right away if you have been granted the correct amount. Enjoy spending your found money!
What is a Social Security Number?
A Social Security Number (or SSN) is a 9 digit number issued to citizens, permanent residents, and temporary residents of the United States of America.
The number is issued to an individual by the Social Security Administration, an agency of the federal government. Its primary purpose is to track individuals for taxation purposes. In recent years the SSN has become a de facto national identification number.
The first SSNs were issued by the Social Security Administration in November 1936 as part of the New Deal Social Security program. By the end of 1937, over 37 million numbers had been issued.
Before 1986, people often did not have a Social Security number until the age of about 14, since they were used for income tracking purposes, and those under that age seldom had substantial income.
In 1986, American taxation law was altered so that individuals over 5 years old without Social Security numbers could not be successfully claimed as dependents on tax returns.
Since then, parents have often applied for Social Security numbers for their children soon after birth.
Contrary to popular belief, there is no law requiring a natural born US Citizen to apply for a Social Security number to live or work in the United States. Although some people do not have an SSN assigned to them, it is becoming ever increasingly difficult to engage in legitimate financial activities without one.
