2. PresentationOverview
• Importance of Social Security
• Social Security Basics
• Social Security & Pensions
• Types of Benefits & Eligibility
• Why work with an RSSA?
• Questions & Answers
4. Importance of Social Security
96%
of people
get less than
they should
$111K
lost by average
American
household
5. • When should I claim?
• What if I’m self-employed?
• Is Social Security going bankrupt?
• When should my spouse claim?
• Can my children get benefits?
• Can I get benefits from my ex?
• What about dependents with disabilities?
• How will my pension impact me?
Social Security Can Be Confusing
Common Questions
7. Social Security Terminology
Full Retirement Age
FRA
Primary Insurance Amount
PIA
Average Indexed Monthly Earnings
AIME
Cost of Living Adjustment
COLA
8. Your Full Retirement Age (FRA)
BirthYear* Full RetirementAge
1943-54 66
1955 66, 2 months
1956 66, 4 months
1957 66, 6 months
1958 66, 8 months
1959 66, 10 months
1960 &higher 67
*If birthday is on the 1st, assumeborn the prior month.
If birthday is January 1st
, refer to previous year.
9. Calculating Retirement Benefit
Qualification
40 Quarters of Coverage (2022 credit =
$1,510)
Average Indexed Monthly Earnings
All covered annual earnings are indexed.
The highest 35 years are used to determine
the average indexed monthly earnings.
11. Social Security Reductions & Credits
Claiming Age Monthly Benefits % of PIA
62 $1,885 70
Benefit is
Reduced
63 $2,020 75
64 $2,154 80
65 $2,334 87
66 $2,513 93
67 (FRA) $2,693* 100 PIA Amount
68 $2,908 108
Benefit
is Increased
69 $3,124 116
70 $3,339 124
12. Life Expectancy (LE) is a Consideration
Probability of Living to a Certain Age If You
Are 65
13. Collecting Benefits While Working
13
*Exempt amounts for 2022
CollectingWhile Working
• $1 for every $2 earned above $19,560*
• $1 for every $3 you earn above $51,960*
• No earnings limits FRA+
First Year Rule - Overpayment - Recalculation
14. Already Collecting Benefits? Can you stop them?
Withdraw Application
• Within 12 months of filing
• Pay back benefits received
Voluntary Suspension
• At or after FRA
• Benefits increase again
• Reinstate after FRA, up to 70
• Can be done once
Disability benefits
• Becomes retirement benefit at FRA
• Voluntary suspension available
14
16. Covered vs. Non-Covered Pensions
Covered Pensions Non-Covered Pensions
Payroll contributionsto
Social Security
Not subject to Social
Security reductions
Work at private or public
companies
No payroll contributionsto
Social Security
Subject to Social Security
reductions
Work at federal, state, or
local agencies
17. Windfall Elimination Provision(WEP)
Important Considerations:
• Cannot zero out the retirement benefit
• Dependent benefits are also reduced
• Cannot reduce the benefit amount by more than half of the pension amount
WEP modifies the PIA calculation
Applies if collecting both:
1. A non-covered pension
2. Retirement or disability benefits
18. Government Pension Offset (GPO)
GPO reduces benefits by 2/3 of the pension
Applies if collecting both:
1. A non-covered pension
2. Spousal or survivor benefits
Important Considerations:
• Can eliminate the benefit
• If pension is taken as lump-sum, GPO is calculated as if taken monthly
20. Spousal Benefits
Claiming Age % of PIA
62 32.5
Benefit is
Reduced
63 35
64 37.5
65 41.66
66 45.83
67 (FRA) 50
Maximum Spousal
Benefit
A Spousal Benefit calculation
begins with ½ of the other spouse’s
PIA.
• Maximum at FRA
• Reduced before FRA
• Married at least 12 mo.
• Other spouse must be collecting
retirement benefit
21. Minor Children
Qualifications:
1. Child under age 18 (or 19 if still in high school)
2. Parent collecting retirement or disability
Benefit Amount:
1. Up to 50% of parent’s PIA
2. Limited by family maximum benefit
3. Subject to earnings test
22. Child-in-Care Spousal Benefit
Qualifications:
1. Caring for child under the age of 16
2. Caring for a disabled child
Benefit Amount:
1. Up to 50% of spouse’s PIA
2. Limited by family maximum benefit
3. Subject to earnings test
23. Disabled Children
23
Qualifications:
1. Child disabled before age 22
2. Child unmarried
3. Child must not have substantialincome
4. Parent collecting retirement or disability
Benefit Amount:
1. Up to 50% of parent’s PIA
2. Limited by family maximum benefit
3. Subject to earnings test
24. Survivor Benefits
24
Married Requirements
• Married for 9 months or more
Divorced Requirements
• Married for 10 or more years
• Not re-married before age 60
Filing Age
Survivor Benefit
Reduction %
60 71.50
61 75.58
62 79.65
63 83.72
64 87.79
65 91.86
66 95.93
67 (FRA) 100
68 100
69 100
70 100
25. Survivor Benefits: Dependents
Child-in-CareWidow(er)
• Caring for child under 16
• Caring for disabled child
if disabled before age 22
75% of PIA
Children
• Under 18 (19 if in high school)
• Disabled child
if disabled before age 22
Parents
• Relied on child for
majority of income
26. Survivor Benefits: Additional Facts
Full Retirement Age by Birth Year
• 82.5% Rule
Benefit not less than
82.5% of deceased’s
PIA
• Survivor FRA
Varies from other
benefits if born 1954 -
1962
• Lump-Sum Death
Payment
$255.00 paid to eligible
spouse or dependents