Who Is Eligible for Social Security Retirement Benefits? How Many Quarters Does One Need to Work, 10 Years | ElderLawAnswers
Who Is Eligible for Social Security Retirement Benefits? | ElderLawAnswers:
October 6, 2014
October 8, 2014
"Who Is Eligible for Social Security Retirement Benefits?
It’s your responsibility to notify Social Security when you become a U.S. citizen or your immigration status changes. Visit our website or call 1-800-772-1213 for a Social Security office in your area.
Breast Cancer Awareness Month
October 6, 2014
This month is National Breast Cancer Awareness Month. If you or a loved one has been diagnosed with breast cancer that has metastasized or is inoperable, you or they may qualify for expedited Social Security disability benefits under our Compassionate Allowances program.
Who Is Eligible for Social Security Retirement Benefits?
Social Security retirement benefits are not based on need but rather on income earned during your earning life. The Social Security Administration (SSA) keeps a record of earnings over your working life and pays benefits that are based on the average amount earned, provided a minimum number of work credits have been accumulated. Only income on which Social Security tax is paid is considered in calculating these work credits.
To be eligible for Social Security retirement benefits, a worker born after 1928 must have accumulated at least 40 quarters of work in "covered employment". A "quarter of coverage" generally means the three-month calendar quarter. In addition, you must earn at least $1,200 in a quarter (in 2014) for it to count. However, the SSA looks at how much you earned in a year and divides that figure by the minimum amount required to earn credit for a quarter. Thus, if you earn at least $4,800 in January and February of 2014 and don't work the rest of the year, you will receive credit for four quarters of work ($4,800/$1,200 = 4).
For Social Security purposes, "retirement" is defined as whenever you choose to begin receiving benefits after you reach age 62--whether or not you are actually still working. Starting at age 62 you can begin receiving benefits, provided you have accumulated the minimum required quarters of coverage (although you will pay a penalty for retiring before your "full retirement age." a number that ranges from 65 to 67 depending on your year of birth). You do not have to actually stop working to be eligible to receive Social Security retirement benefits, although if you have not yet reached your full retirement age your benefits may be reduced depending on how much income you earn. Conversely, you can stop working entirely and still postpone receiving Social Security retirement benefits. However, if you stop working, your average earnings over your working life may be less and this may result in a reduced benefit.
The amount of earnings it takes to earn a credit has changed since 1978. In the year 2014, you must earn $1,200 in covered earnings to get one Social Security or Medicare work credit and $4,800 to get the maximum four credits for the year.
Note: You do not earn credits for pension payments or for interest or dividends on savings and investments. You do not pay Social Security tax on that kind of income.
During your lifetime, you probably will earn more credits than the minimum number you need to be eligible for benefits. These extra credits do not increase your benefit amount. Your average earnings over your working years determine how much your monthly payment will be.
Click on the following topics for more information about Social Security Credits:
Benefits
- THE
- TICKET TO WORK PROGRAM Beneficiaries can choose to use their Ticket because the TTW program is free and voluntary
- There is no need to worry if a Ticket is lost since the actual Ticket is not required to participate
- The TTW program helps people to access vocational rehabilitation, training, and placement services
- A combination of work incentives can be used to explore work options and still receive benefits
- If a work attempt is unsuccessful, beneficiaries can get back on Social Security benefits
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Beware of phone scams!
October 8, 2014
If someone calls you claiming to be from Social Security, don’t provide your personal info without first contacting us to verify that we really are trying to contact you. It could be an identity thief phishing for your personal information.
Call Social Security’s toll-free number at 1-800-772-1213 (TTY 1-800-325-0778).
If you receive a suspicious call, report it here. http://oig.ssa.gov
"Who Is Eligible for Social Security Retirement Benefits?
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