Social Security www socialsecurity gov History of Social

Social Security www. socialsecurity. gov

History of Social Security Programs Ø 1935 – Retirement Insurance Ø 1939 – Survivors Insurance Ø 1956 – Disability Insurance

Other Programs Ø 1965 – Medicare Program Ø 1972 – Supplemental Security Income Ø 2003 – Medicare Prescription Drug Coverage Ø 2010 – Patient Protection and Affordable Care Act

Save for a Secure Future Social Security is the foundation for a secure retirement, but you also will need other savings and investments. If you want to learn more about how and why to save, visit www. mymoney. gov

A Foundation for Planning Your Future OTHER INCOME SAVINGS & INVESTMENTS PENSION SOCIAL SECURITY

Who Gets Benefits from Social Security? 58 million people 8. 9 million Disabled Workers and 2. 1 million Dependents 4. 3 million Widows/Widowers 1. 9 million Children of Deceased Workers 37. 9 million Retired Workers and 2. 9 million Dependents

Who Pays for Social Security? Today’s Workers & Employers Today’s Beneficiaries

U. S. Birth Rate 1920 -2020 Children Per Woman 4 3, 5 3 2, 5 2 1, 5 1 0, 5 0 . 20 20 10 20 00 20 90 19 80 19 70 19 60 19 50 19 40 19 30 19 19 20 est

America is Getting Older U. S. Population Age 65 & Older 2035 (21% of total population) 2015 (15% of total population) (7% of total population) 1946 0 10 20 30 40 Million 50 60 70 80

Life Expectancy for Those Age 65 Today Men Women U. S. Population 82 85 White 82 85 African American 79 83 Hispanic 85 89 Asian 85 88 American Indian 84 88

Calendar Year 05 05 19 7. . 0 25 19 05 19 7. . 0 23 7. . 0 21 05 05 19 7. . 0 17 05 19 7. . 0 15 05 05 19 19 7. . 0 13 7. . 0 11 05 19 7. . 0 09 05 19 19 7. . 0 07 7. . 0 05 0: 00 : 0 0 0: 00 0 : 0 0 : 0 00 0: 00 0: 00 0 : 0 00 0: 00 Trillions of Constant 2013 Dollars Social Security Trust Funds Will Be Able to Pay Only About 77 Cents for Each Dollar of Scheduled Benefits after 2033 $3, 00 $2, 50 $2, 00 $1, 50 $1, 00 $0, 50 $0, 00 ($0, 50)

Social Security Cost-of-Living Adjustments Effective Date June 1975 June 1976 June 1977 June 1978 June 1979 June 1980 June 1981 June 1982 Dec 1983 Dec 1984 Dec 1985 Dec 1986 Dec 1987 Dec 1988 Dec 1989 Dec 1990 Dec 1991 Dec 1992 Dec 1993 Dec 1994 Amount 8. 0% 6. 4% 5. 9% 6. 5% 9. 9% 14. 3% 11. 2% 7. 4% 3. 5% 3. 1% 1. 3% 4. 2% 4. 0% 4. 7% 5. 4% 3. 7% 3. 0% 2. 6% 2. 8% Effective Date Dec 1995 Dec 1996 Dec 1997 Dec 1998 Dec 1999 Dec 2000 Dec 2001 Dec 2002 Dec 2003 Dec 2004 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Amount 2. 6% 2. 9% 2. 1% 1. 3% 2. 5% 3. 5% 2. 6% 1. 4% 2. 1% 2. 7% 4. 1% 3. 3% 2. 3% 5. 8% 0% 0% 3. 6% 1. 7% 1. 5% 1. 7%

Value of Inflation Protection Example: Worker with average pre-retirement income of $30, 000 (Retiring at age 66 in 2015) 1 st Year of Retirement Pension $13, 000/50% Social Security $13, 000/50% Inflation 3% per year

Value of Inflation Protection example continued: Worker with average pre-retirement income of $30, 000 5 th Year of Retirement Pension Social Security $13, 000/47% $14, 632/53% 10 th Year of Retirement Pension Social Security $13, 000/43% $16, 962/57% 20 th Year of Retirement Pension Social Security $13, 000/36% $22, 796/64%

How Do You Qualify for Retirement Benefits? Ø You need to work to earn Social Security “credits” Ø Each $1, 220 in earnings gives you one credit Ø You can earn a maximum of 4 credits per year Example: To earn 4 credits in 2015, you must earn at least $4, 880. Earning 40 credits (10 years of work) throughout your working life will qualify you for a retirement benefit.

Thinking of Retiring? Ø Deciding what is the ‘right’ age to retire Ø Check online Social Security Statement Ø How working after retirement can affect benefits Ø Medicare considerations Ø Online retirement estimator Ø How to apply online for benefits

Your Age at the Time You Elect Retirement Benefits Affects the Amount If You’re a Worker and Retire Ø At age 62, you get a lower monthly payment Ø At your full retirement age, you get your full benefit Ø You get an even higher monthly payment if you work past your full retirement age

Your Age at the Time You Elect Retirement Benefits Affects the Amount For example, if you were born from 1943 through 1954: Ø Age 62 75% of benefit Ø Age 66 100% of benefit Ø Age 70 132% of benefit

In Addition to the Retiree, Who Else Can Get Benefits? Your Child Ø Ø Not married under 18 (under 19 if still in high school) Not married and disabled before age 22 Your Spouse Ø Age 62 or older Ø At any age, if caring for a child under age 16 or disabled

In Addition to the Retiree, Who Else Can Get Benefits? Your Ex-Spouse Ø Marriage lasted at least 10 years Ø Ex-spouse 62 or older Ø Divorced at least two years and your ex-spouse are at least 62, he or she can get benefits even if you are not retired Ø Ex-spouse’s benefit amount has no effect on the amount you or your current spouse can get

Spouse’s Benefit Computation Ø Benefit is 50% of worker’s unreduced benefit Ø Reduction for early retirement Ø If spouse’s own benefit is less than 50% of the worker’s, the benefits are combined Ø Does not reduce payment to worker

Full Retirement Age Year of Birth Full Retirement Age 1937 or earlier 1938 1939 1940 1941 1942 1943 – 1954 1955 1956 1957 1958 1959 1960 or later 65 65 & 2 months 65 & 4 months 65 & 6 months 65 & 8 months 65 & 10 months 66 66 & 2 months 66 & 4 months 66 & 6 months 66 & 8 months 66 & 10 months 67

How Social Security Determines Your Benefit Social Security benefits are based on earnings Ø Step 1 -Your wages are adjusted for changes in wage levels over time Ø Step 2 -Find the monthly average of your 35 highest earnings years Ø Step 3 -Result is “average indexed monthly earnings” 23

Use the Retirement Estimator Ø Convenient, secure, and quick financial planning tool Ø Immediate and accurate benefit estimates Ø Lets you create “What if” scenarios based on different ages and earnings www. socialsecurity. gov/estimator

What You Can Expect at Full Retirement Age 60% 50% Preretirement % of Earnings 55% 40% 41% 30% 34% 20% 10% 0% Low Earner Average Earner High Earner

my Social Security Your Online Account. . . Your Control. . . socialsecurity. gov/myaccount my Social Security is an easy-to-access, easy-to-use portal to view and update some

Who Can Open a my Social Security Account? You must be at least 18 years old and have a: • Valid E-mail address; • Social Security number; and • U. S. mailing address.

my Social Security Services If you don’t get benefits, you can— • Review estimates of your future retirement and disability benefits; • Review estimates of the benefits your family may get when you receive Social Security or die; • Verify your lifetime earnings according to Social Security’s records; • Review the estimated Social Security and Medicare taxes you’ve paid; • Learn about qualifying and signing up for Medicare; and • View, save, and print your Social Security Statement.

my Social Security Services If you do get benefits you can— • Check your benefit and payment information and verify your earnings record; • Change your address and phone number; and • Start or change your direct deposit. • Get a replacement SSA-1099 or SSA 1042 S for tax season.

Online Benefit Verification Letter With my Social Security you can get your benefit verification letter online and use it as official proof of: • Your income when you apply for a loan or mortgage, assisted housing or other state or local benefits; • Your current Medicare health insurance coverage; • Your retirement or disability status; and • Your age.

my Social Security Getting Started How to open a my Social Security account 1 Visit socialsecurity. gov/myaccount 2 Select: Create an Account

my Social Security Getting Started How to open a my Social Security account 3 Provide some personal information to verify your identity. 4 Choose a username and password to create your account.

my Social Security You May Choose to Add Extra Security You will need to enter a unique code we will send to your text-enabled cell phone each time you want to sign in, in addition to your username and password. Your text message rates still apply. To add this feature, you will first have to provide us with one of the following to verify your identity: • The last eight digits of your Visa, Master. Card, or Discover credit card; • Information from your W-2 tax form; • Information from your 1040 Schedule SE (self-employment) tax form; or • Your direct deposit amount, if you receive Social Security benefits.