47'4 Million People

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Who Gets Benefits from Social Security?
47.4 Million People
4.8 million Widows/ Widowers
6 million Disabled Workers, 1.7 million Dependents
29.7 million Retired Workers 3.1
million Dependents
1.9 million Children
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A Foundation for Planning Your Future
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The Social Security Statement

• The Statement provides you with estimates of
  monthly Social Security retirement, disability
  and survivors Benefits
• The Statement provides earnings for you to check
  for accuracy

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Find Out About Your Social Security
Request Your Social Security Statement
for Estimates of benefits at different
retirement ages Different wage estimates www.socia
lsecurity.gov
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You Need to Work to Earn Social Security Credits

• Each 970 in earnings
• gives you one credit
• You can earn a maximum
• of 4 credits per year
• Example To earn 4 credits in 2006, you must earn
  at least 3,880. Earning 40 credits throughout
  your working life will qualify you for a
  retirement benefit.

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How Social Security Determines Your Benefit
Social Security benefits are based on
earnings Step 1 Your wages are adjusted for
inflation Step 2 Find the average of your 35
highest earnings years Step 3 Result is average
indexed monthly earnings
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Retirement Benefit Computation Example
If your average monthly earnings
are 4,200 Then your benefit would
be 1,688 Average Monthly Earnings 4,200 90
of First 656 590 32 of the Next Up
to 3,995 1068 15 of the Remainder 205 30
4,200 1,688
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What Youll Get at Full Retirement Age
57
43
36
of earnings
Low Earner
Average Earner
High Earner
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Full Retirement Age
Year of Birth Full Retirement Age 1937 65 1938
65 2 months 1939 65 4 months 1940 65 6
months 1941 65 8 months 1942 65 10
months 1943 1954 66 1955 66 2
months 1956 66 4 months 1957 66 6
months 1958 66 8 months 1959 66 10
months 1960 later 67
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Your Age When You Retire Affects Your Benefits

• If Youre A Worker and Retire
• At age 62, you get less money permanently
• At your full retirement age, you get your
• full benefit
• You get even more money if you work past
• your full retirement age

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Who Can Get Medicare?
65 older -or- Receiving Social Security
disability benefits at least 24
months -or- Permanent kidney failure -or- Amyotrop
hic Lateral Sclerosis (ALS)
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Medicare Coverage

• Part A Hospital Insurance
• Covers most inpatient hospital expenses.
• 2006 Deductible 952
• Part B Supplementary Medical Insurance
• Covers 80 doctor bills other outpatient
  medical expenses after 1st 124 in approved
  charges.
• 2006 Monthly Premium 88.50

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How Will the Prescription Drug Plan Affect You?

• Available January 2006
• You will choose a prescription drug plan pay a
  premium of about 32 a month
• You will pay the first 250 (called a
  deductible)
• Medicare will pay 75 of costs between 250
  2,250 in drug spending. You will pay only
  25 of these costs.
• You will pay 100 of the drug costs above 2,250
  until you reach 3,600 in out-of-pocket
  spending
• Medicare will pay about 95 of the costs after
  you have spent 3,600

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For More Information
1-800-MEDICARE www.medicare.gov
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You Can Work Still Receive Benefits
If You Are You Can If You Make More, Make Up
To Some Benefits Will Be Withheld Under
Full Retirement Age 12,480 (1040/mo.) 1 for
every 2 Full Retirement Age and Above No Limit
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Social Security Cost-of-Living Adjustments
Effective Date Amount June 1975 8 June
1976 6.4 June 1977 5.9 June 1978 6.5 June
1979 9.9 June 1980 14.3 June 1981 11.2 June
1982 7.4 Dec 1983 3.5 Dec 1984 3.5 Dec
1985 3.1 Dec 1986 1.3 Dec 1987 4.2 Dec
1988 4 Dec 1989 4.7 Dec 1990 5.4
Effective Date Amount Dec 1991 3.7 Dec
1992 3 Dec 1993 2.6 Dec 1994 2.8 Dec
1995 2.6 Dec 1996 2.9 Dec 1997 2.1 Dec
1998 1.3 Dec 1999 2.5 Dec 2000 3.5 Dec
2001 2.6 Dec 2002 1.4 Dec 2003 2.1 Dec
2004 2.7 Dec 2005 4.1
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Social Securitys Online Services

• Retirement Disability Applications
• Retirement/Survivors/Disability Planner
• eNews
• Medicare Card Replacements
• Request a Statement
• Request a Benefit Verification Letter
• Change of Address

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Visit Our Website or Call! www.socialsecurity.gov
-or- 1-800-772-1213 TTY 1-800-325-0778