

                          Retirement


                   U.S. Department of Health and Human Services
                                 Social Security Administration
                                   SSA Publication No. 05-10035
                                                      June 1993
                                                     ICN 457500
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WHO SHOULD READ THIS BOOKLET?
_______________________________________________________________

You should if you're starting to think about retirement. 
That's because Social Security will be part of the retirement
plans of almost every worker in the United States.  The
decisions you make about retirement will be some of the most
important ones you will ever make.  This booklet provides
information you need about Social Security benefits to help you
plan for your retirement years.

   But retirement benefits are just one part of Social
Security.  If you would like to learn about other kinds of
Social Security benefits, you can read about them in some of
our other Social Security booklets.  There is a list of
publications on the last page of this booklet.

PLEASE NOTE: This booklet provides a general overview of Social
Security retirement benefits.  The information it contains is
not intended to cover all provisions of the law.  For specific
information about your case, contact Social Security.
_______________________________________________________________

WHAT'S INSIDE
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PART 1--ABOUT YOUR RETIREMENT BENEFITS                        
      How Do You Qualify For Retirement Benefits?             
      How Much Will Your Retirement Benefit Be?               
      Full Retirement Age                                     
      Early Retirement                                        
      Delayed Retirement                                      
      Choosing Your Retirement Date                           
      Retirement Benefits For Widows                          

PART 2--ABOUT FAMILY BENEFITS                                 
      Benefits For Family Members                             
      Spouses Benefits                                        
      Maximum Family Benefits                                
      Benefits For A Divorced Spouse                         

PART 3--WHAT YOU NEED TO KNOW WHEN YOU'RE ELIGIBLE FOR
      RETIREMENT BENEFITS                                    
      How Do You Sign Up For Social Security?                
      Right To Appeal                                        
      If You Work And Get Social Security At The Same Time   
      Your Benefits May Be Taxable                           
      Pensions From Work Not Covered By Social Security      
      Leaving The United States                            
      A Word About Medicare                                  

FOR MORE INFORMATION                                         

OTHER BOOKLETS AVAILABLE                                     
_______________________________________________________________

           PART 1--ABOUT YOUR RETIREMENT BENEFITS

HOW DO YOU QUALIFY FOR RETIREMENT BENEFITS?
___________________________________________

When you work and pay Social Security taxes (referred to as
FICA on some pay stubs), you earn Social Security credits. 
Most people earn 4 credits per year. 

   The number of credits you need to get retirement benefits
depends on your date of birth.  If you were born in 1929 or
later, you need 40 credits (10 years of work).  People born
before 1929 need fewer than 40 credits (39 credits if born in
1928; 38 credits if born in 1927; etc.).

   If you stop working before you have enough credits to
qualify for benefits, your credits will remain on your Social
Security record.  If you return to work later on, you can add
more credits so that you qualify.  No retirement benefits can
be paid until you have the required number of credits.

   But if you're like most people, you will earn many more
credits than you need to qualify for Social Security.  These
extra credits do not increase your Social Security benefit. 
However, the income you earn while working will increase your
benefit, as you will learn in the next section.

HOW MUCH WILL YOUR RETIREMENT BENEFIT BE?
_________________________________________

Your benefit amount is based on your earnings averaged over
most of your working career.  Higher lifetime earnings result
in higher benefits.  If you have some years of no earnings or
low earnings, your benefit amount may be lower than if you had
worked steadily.

   Your benefit amount also is affected by your age at the time
you start receiving benefits.  If you start your retirement
benefits at age 62 (the earliest possible retirement age), your
benefit will be lower than if you waited until a later age. 

HERE'S AN IMPORTANT POINT: Social Security will give you a
personalized benefit estimate at your request.  Call our
toll-free telephone number, 1-800-772-1213, to ask for a
"Request for Earnings and Benefit Estimate Statement."  We will
send you a simple form to complete and return.  When you mail
in this form, we will mail back your complete earnings history
along with estimates of your benefits for early retirement,
full retirement, and age 70.  We'll also give you an estimate 
of the disability benefits you could receive as well as the
amount of benefits payable to your spouse and children due to
your retirement, disability, or death

   If you are age 60 or older, you can get an estimate of your
   retirement benefits by telephone.

   Social Security law provides for automatic cost-of-living
increases.  Once you start receiving benefits, the amount will
go up automatically if the cost of living rises.

FULL RETIREMENT AGE
___________________

The usual retirement age for people retiring now is age 65.
Social Security calls this "full retirement age," and the
benefit amount that is payable is considered the full
retirement benefit.

   Because of longer life expectancies, the full retirement age
will be increased in gradual steps until it reaches age 67.
This change starts in the year 2000, and it affects people born
in 1938 and later.

Look at the chart below to find your full retirement age.

         AGE TO RECEIVE FULL SOCIAL SECURITY BENEFITS
         ____________________________________________

           YEAR OF BIRTH      FULL RETIREMENT AGE

          1937 or earlier           65
               1938            65 and 2 months
               1939            65 and 4 months
               1940            65 and 6 months
               1941            65 and 8 months
               1942            65 and 10 months
            1943-1954                66
               1955            66 and 2 months
               1956            66 and 4 months
               1957            66 and 6 months
               1958            66 and 8 months
               1959            66 and 10 months
          1960 and later            67

          ______________________________________

EARLY RETIREMENT
________________

You can start your Social Security benefits as early as age 62,
but the benefit amount you receive will be less than your full
retirement benefit.

   If you take early retirement, your benefits will be reduced
based on the number of months you will receive checks before
you reach full retirement age.  If your full retirement age is
65, the reduction for starting your Social Security at age 62
is about 20 percent; at age 63, it is about 13 1/3 percent; and
at age 64, it is about 6 2/3 percent.

   If your full retirement age is older than 65 (that is, you
were born after 1937), you still will be able to take your
retirement benefits at age 62, but the reduction in your
benefit amount will be greater than it is for people retiring
now.

   For example, John is retiring this year when he turns 62 and
he will receive monthly benefits equal to about 80 percent of
the benefit amount he would have received had he waited until
age 65 to retire.  His son, James, was born in 1962 and, based
on the revised retirement age schedule, he would be eligible
for full retirement benefits at age 67.  If James takes early
retirement benefits at age 62 like his father, his monthly
check will be about 70 percent of the full benefit he would
receive if he waited until age 67 to retire.

   As a general rule, early retirement will give you about the
same total Social Security benefits over your lifetime, but in
smaller amounts to take account of the longer period you will
receive them.

HERE'S AN IMPORTANT POINT: Sometimes poor health forces people
to retire early.  If you are unable to continue working because
of poor health, you should consider applying for Social
Security disability benefits.  The amount of the disability
benefit is the same as a full, unreduced retirement benefit. 
For more information, call us to ask for a copy of the booklet,
"Disability" (Publication No. 05-10029). 

DELAYED RETIREMENT
__________________

If you decide to continue working full time beyond your full
retirement age, you can increase your Social Security benefit
in two ways: 

o  If you're like most people who delay their retirement,
   you'll be adding a year of high earnings to your Social -
   Security record.  And, as we said earlier, higher lifetime
   earnings result in higher benefits. 

o  In addition, your benefit will be increased by a certain
   percentage if you delay retirement.  These increases will be
   added in automatically from the time you reach your full
   retirement age until you start taking your benefits, or you
   reach age 70.  The percentage varies depending on your year
   of birth.  See the chart below for the increase that will
   apply to you.

           Chart Of Increases For Delayed Retirement
          ___________________________________________

          Year Of Birth       Yearly Rate of Increase

            1917t1924                   3%
            1925t1926                   3.5%
            1927t1928                   4%
            1929t1930                   4.5%
            1931t1932                   5%
            1933t1934                   5.5%
            1935t1936                   6%
            1937t1938                   6.5%
            1939t1940                   7%
            1941t1942                   7.5%
          1943 or later                 8%
          ___________________________________________

For example, if you were born in 1943 or later, we will add to
your benefit an extra 8 percent per year (2/3 of one percent
per month) for each year you delay signing up for Social
Security beyond your full retirement age.

HERE'S AN IMPORTANT POINT: If you decide to delay your
retirement, BE SURE TO SIGN UP FOR MEDICARE AT AGE 65.  In some
circumstances, medical insurance costs more if you delay
applying for it.  

CHOOSING YOUR RETIREMENT DATE
_____________________________

If you plan to start your retirement benefits after age 62, it
is a good idea to contact Social Security in advance to see
which month is best to claim benefits.  In some cases, your
choice of a retirement month could mean additional benefits for
you and your family.

   It may be to your advantage to have your Social Security
benefits start in January, even if you don't plan to retire
until later in the year.  Depending on your earnings and your
benefit amount, it may be possible for you to start collecting
benefits even though you continue to work.  Under current
rules, many people can receive the most benefits possible with
an application that is effective in January. 

   If you are not working, or your annual earnings are under
the earnings limits explained on pages 11-12, or you plan to
start collecting your Social Security when you turn 62, you
should apply for benefits 3 months before the date you want
your benefits to start.

   Because the rules are complicated, we urge you to discuss
your plans with a Social Security claims representative in the
year before the year you plan to retire.

RETIREMENT BENEFITS FOR WIDOW(ER)S
__________________________________

Widow(er)s can begin receiving benefits at age 60 or age 50 if
disabled.  If you are receiving widows or widowers (including -
divorced widows or widowers) benefits, you can switch to your
own retirement benefits (assuming you're eligible and your
retirement rate is higher than your widow(er)'s rate) as early
as age 62.  In many cases, a widow(er) can begin receiving one
benefit at a reduced rate and then switch to the other benefit
at an unreduced rate at age 65.  The rules vary depending on
the situation, so you should talk to a Social Security
representative about the options available to you.
______________________________________________________________

                PART 2--ABOUT FAMILY BENEFITS

BENEFITS FOR FAMILY MEMBERS
___________________________

If you're receiving retirement benefits, some members of your
family also can receive benefits.  Here's a list of those who
can: 

o  Your wife or husband age 62 or older; 

o  Your wife or husband under age 62, if she or he is taking
   care of your child who is under age 16 or disabled; 

o  Your former wife or husband age 62 or older (see "Benefits
   For A Divorced Spouse" ); 

o  Children up to age 18; 

o  Children age 18-19, if they are full-time students through
   grade 12;

o  Children over age 18, if they are disabled.

SPOUSES BENEFITS
________________

The full benefit for a spouse is one-half of the retired
worker's full benefit.  If your spouse takes benefits before
age 65, the amount of the spouse's benefit is reducedtto a low
of 37.5 percent at 62.  However, a spouse who is taking care of
a child who is under 16 or disabled gets full (50 percent)
benefits, regardless of age.

   If you're eligible for both your own retirement benefits and
for benefits as a spouse, we always pay your own benefit first. 
If your benefit as a spouse is higher than your retirement
benefit, you'll get a combination of benefits equaling the
higher spouse benefit.

Here's an example:

Mary Ann qualifies for a retirement benefit of $250 and a
wife's benefit of $400.  At age 65, she will receive her own
$250 retirement benefit and we will add to this $150 from her
wife's benefit, for a total of $400.  If she takes her
retirement benefit at any time before she turns 65, both the
retirement benefit and the wife's benefit will be reduced, even
if she doesn't start receiving her wife's benefit until later
because her husband hasn't retired yet.

MAXIMUM FAMILY BENEFITS
_______________________

If you have children eligible for Social Security, each will
receive up to one-half of your full benefit.  But there is a
limit to the amount of money that can be paid to a family.  If
the total benefits due your spouse and children exceed this
limit, their benefits will be reduced proportionately.  Your
benefit will not be affected.

BENEFITS FOR A DIVORCED SPOUSE
______________________________

A divorced spouse can get benefits on a former husband's or
wife's Social Security record if the marriage lasted at least
10 years.  The divorced spouse must be 62 or older and
unmarried.  For a divorced spouse to get benefits, the worker
also must be 62 or older.  If they have been divorced at least
2 years, he or she can get benefits, even if the worker is not
retired.  The 2-year waiting period for the spouse is waived if
the worker got benefits before the divorce.  The amount of
benefits a divorced spouse gets has no effect on the amount of
benefits a current spouse can get.
______________________________________________________________

    PART 3--WHAT YOU NEED TO KNOW WHEN YOU'RE ELIGIBLE FOR
                      RETIREMENT BENEFITS

HOW DO YOU SIGN UP FOR SOCIAL SECURITY?
_______________________________________

You can apply for benefits by telephone or by going to any
Social Security office.  Depending on your circumstances, you
will need some or all of the documents shown on the list below.
But don't delay your application because you don't have all the
information.  If you don't have a document you need, Social
Security can help you get it.

   INFORMATION NEEDED 

   o  Your Social Security number; 

   o  Your birth certificate; 
   o  Your W-2 forms or self-employment tax return for last
      year;

   o  Your checking or savings account information for direct
      deposit.

   o  Your military discharge papers if you had military
      service;

   o  Your spouse's birth certificate and Social Security
      number if he or she is applying for benefits; 

   o  Children's birth certificates and Social Security
      numbers, if applying for children's benefits; 

      You will need to submit original documents or copies
   certified by the issuing office.  You can mail or bring them
   to Social Security.  We will make photocopies and return
   your documents.  

RIGHT TO APPEAL
_______________

If you disagree with a decision made on your claim, you can
appeal it.  The steps you can take are explained in the
factsheet, "The Appeals Process" (Publication No. 05-10041),
which is available from Social Security.

   You have the right to be represented by an attorney or other
qualified person of your choice.  More information is in the
factsheet, "Social Security And Your Right To Representation"
(Publication No. 05-10075), which is also available from Social
Security.

IF YOU WORK AND GET SOCIAL SECURITY AT THE SAME TIME
____________________________________________________

You can continue to work and still get retirement benefits as
long as your earnings are under certain limits.

   These limits increase each year as average wages increase.
For the current amounts, contact Social Security  to ask for
the factsheet, "How Work Affects Your Social Security Benefits"
(Publication No. 05-10069).

   You can work and earn up to the limit and still get all your
Social Security checks.  If your earnings go over the limit,
some or all of your benefits will be offset by your earnings.
Here's how it works: 

o  IF YOU ARE UNDER 65, $1 in benefits will be deducted for
   each $2 in earnings above the limit. 

o  IF YOU ARE 65 THROUGH 69, $1 in benefits will be deducted
   for each $3 in earnings above the limit.

Earnings in or after the month you reach age 70 won't affect
your Social Security benefits.

   If other family members receive benefits on your Social
Security record, THE TOTAL FAMILY BENEFITS WILL BE AFFECTED BY
YOUR EARNINGS.  This means we will offset not only your
benefits, but those payable to your family as well.  If a
family member works, however, THE FAMILY MEMBER'S EARNINGS
AFFECT ONLY HIS OR HER BENEFITS.

   A SPECIAL MONTHLY RULE

   A special rule applies to your earnings for one year,
   usually your first year of retirement.  Under this rule, you
   can receive a full Social Security check for any MONTH you
   are "retired," regardless of your yearly earnings.  Your
   earnings must be under a monthly limit.  If you're
   self-employed, the services you perform in your business are
   taken into consideration as well.

      If you want more information on how earnings affect your
   retirement benefit, call us to ask for a copy of the
   factsheet, "How Work Affects Your Social Security Benefits"
   (Publication No. 05-10069).  This factsheet has the figures
   for the current annual and monthly earnings limits.

   REPORTING YOUR EARNINGS

   If you earn more than the earnings limit and you receive
   some benefits from Social Security, you must complete an
   "Annual Report of Earnings."  In this report, you provide
   your exact earnings for the previous year and an estimate
   for the current year.  You do not have to fill out a report
   if you are 70 or older all year.

      The "Annual Report of Earnings" must be sent by April 15
   of the following year.  There is a substantial penalty for
   not filing this report on time.


YOUR BENEFITS MAY BE TAXABLE
____________________________

About 20 percent of people who get Social Security have to pay
taxes on their benefits.  This provision affects only people
who have substantial income in addition to their Social
Security.

   At the end of each year, you will receive a "Social Security
Benefit Statement" (Form SSA-1099) in the mail showing the
amount of benefits you received.  You can use this statement
when you are completing your Federal income tax return to find
out if any of your benefits are subject to tax.

   For more information, call the Internal Revenue Service's
toll-free telephone number, 1-800-829-3676, to ask for
Publication 554, "Tax Information for Older Americans", and
Publication 915, "Social Security Benefits and Equivalent
Railroad Retirement Benefits."

PENSIONS FROM WORK NOT COVERED BY SOCIAL SECURITY
_________________________________________________

If you get a pension from work where you paid Social Security
taxes, it will not affect your Social Security benefits. 
However, if you get a pension from work which was not covered
by Social Security--for example, the Federal civil service or
some State or local government employment--your Social Security
benefit may be lowered or offset.

   For more information, call Social Security to ask for the
factsheets, "Government Pension Offset"-for government workers
who may be eligible for Social Security benefits on the record
of a husband or wife (Publication No. 05-10007) and "A Pension
From Work Not Covered By Social Security"-for government
workers who also are eligible for their own Social Security
benefits (Publication No. 05-10045).

LEAVING THE UNITED STATES
_________________________

If you are a United States citizen, you can travel or live in
most foreign countries without affecting your eligibility for
Social Security benefits.  However, there are a few countries-
Albania, Cuba, Kampuchea, North Korea, Vietnam, and many of the
former republics of the U.S.S.R.-where we cannot send Social
Security checks.
   If you work outside the United States, different rules apply
in determining if you can get your benefit checks.

   Most people who are neither U.S. residents nor U.S. citizens
will have up to 15 percent of their benefits withheld for
Federal income tax.

   For more information, call us to ask for a copy of the
booklet, "Your Social Security Checks While You Are Outside the
United States" (Publication No. 05-10137).

A WORD ABOUT MEDICARE
_____________________

Medicare is a health insurance plan for people who are 65 or
older.  People who are disabled or have permanent kidney
failure can get Medicare at any age.

   Medicare has two parts-hospital insurance and medical
insurance.  Most people have both parts.

   Hospital insurance, sometimes called Part A, covers -
inpatient hospital care and certain follow-up care.  You have
already paid for it as part of your Social Security taxes while
you were working.

   Medical insurance, sometimes called Part B, pays for
physicians' services and some other services not covered by
hospital insurance.  Medical insurance is optional, and a
premium is charged.

   Most people are already getting Social Security benefits
when they turn 65, and their Medicare starts automatically. 
But if you're not getting Social Security, you should sign up
for Medicare close to your 65th birthday, even if you do not
plan to retire.  For more information, call us to ask for the
booklet, "Medicare" (Publication No. 05-10043).

   HELP FOR LOW-INCOME MEDICARE BENEFICIARIES

   If you have a low income and few resources, your State may
   pay your Medicare premiums and, in some cases, other
   "out-of-pocket" Medicare expenses such as deductibles and
   coinsurance.

      Only your State can decide if you qualify for help under
   this program.  If you think you may qualify, contact your
   State or local medical assistance (Medicaid) agency, social
   service office, or welfare office.  For more information,
   contact Social Security to request a copy of the factsheet,
   "Help For Low-Income Medicare Beneficiaries" (Publication
   No. 05-10079).
_______________________________________________________________

                     FOR MORE INFORMATION

For more information, write or visit any Social Security
office.  Or phone our toll-free number, 1-800-772-1213, and
speak to a representative any business day 7 a.m. to 7 p.m. 
The best times to call are early in the morning and early in
the evening.  And if you can, it's best to call later in the
week and later in the month.  When you call, have your Social
Security number handy.

   The Social Security Administration treats all calls
confidentially-whether they're made to our toll-free number or
to one of our local offices.  We also want to ensure that you
receive accurate and courteous service.  That is why we have a
second Social Security representative listen to some incoming
and outgoing telephone calls.
_______________________________________________________________
                  OTHER BOOKLETS AVAILABLE

Social Security has a number of publications that contain
information about other Social Security programs.  Contact
Social Security to get a free copy of any of these
publications.  They include:

o  "Understanding Social Security" (Publication No. 05-10024)
   --Comprehensive explanation of all the Social Security
   programs.

o  "Disability" (Publication No. 05-10029)--Explains Social
   Security disability benefits. 

o  "Medicare" (Publication No. 05-10043)--Explains Medicare
   hospital insurance and medical insurance. 

o  "Survivors" (Publication No. 05-10084)--Explains Social
   Security survivors benefits. 

o  "SSI" (Publication No. 05-11000)--Explains this program
   which provides a basic income to people 65 or older,
   disabled, or blind who have limited income and resources.
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