                                 A Factsheet from Social Security
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                 A "Snapshot" of Social Security

The Social Security Administration (SSA) produces many
publications that explain the various Social Security,
Supplemental Security Income (SSI), and Medicare programs.  This
factsheet provides a one-page snapshot of the most important
features of those programs.  Readers who need specific
information should refer to other Social Security publications or
talk to a Social Security representative. 

The Social Security Number
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All the benefits you'll receive from Social Security derive from
earnings and other information recorded under your Social
Security number.  So it's very important that you always use the
proper number.  Also, you should make sure the name you use at
work is the same as the name shown on your Social Security card. 
If you ever change your name, you should change the name on your
Social Security card, too.  SSA does not charge for this service. 
Even most young children have Social Security numbers because
parents must list the number on their tax return to claim them as
dependents.

Paying Social Security Taxes
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If you work for someone else, your employer withholds Social
Security and Medicare taxes from your paycheck, matches that
amount, sends those taxes to the Internal Revenue Service (IRS),
and reports your earnings to Social Security.  If you're
self-employed, you pay your own Social Security taxes when you
file your tax return and IRS reports your earnings to Social
Security.  You pay a rate equal to the combined employee/employer
share, but there are special deductions you can take that offset
your tax rate. 

Earning Social Security "Credits"
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As you work and pay taxes, you earn "credits" that count toward
eligibility for future Social Security benefits.  You can earn a
maximum of 4 credits each year.  Most people need 40 credits (10
years of work) to qualify for benefits.  Younger people need
fewer credits to qualify for disability or survivors benefits.

Figuring Social Security Benefits
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Your Social Security benefit is a percentage of your earnings
averaged over most of your working lifetime.  Social Security was
never intended to be your only source of income when you retire
or become disabled, or your family's only income if you die.  It
is designed to supplement other income you have through pension
plans, savings, investments, etc.  The benefit formula is
weighted so that low income workers receive a higher rate of
return than those in the upper income brackets, but a worker with
average earnings can expect a retirement benefit that represents
about 42 percent of his or her lifetime earnings.  To get a free
estimate of the retirement, disability, and survivors benefits
that would be payable to you and your family, call Social
Security at 1-800-772-1213.   

Social Security Benefits
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There are five major categories of benefits paid for through your
Social Security taxes: Retirement, Disability, Family benefits, -
Survivors, and Medicare.  (SSI benefits, which are not financed
by Social Security taxes, are discussed in another section.) 

Retirement

Full benefits are payable at age 65 (with reduced benefits
available as early as 62) to anyone with enough Social Security
credits.  The age at which full benefits are paid will rise in
future years.  People who delay retirement beyond age 65 receive
a special increase in their benefits when they do retire. 

Disability

Benefits are payable at any age to people who have enough Social
Security credits and who have a severe physical or mental
impairment that is expected to prevent them from doing
"substantial" work for a year or moretor who have a condition
that is expected to result in death.  Generally, earnings of $500
or more per month are considered substantial.  The disability -
program includes incentives designed to smooth the transition
back into the workforce, including continuation of benefits and
health care coverage while a person attempts to work.


Family Benefits

If you are eligible for retirement or disability benefits, other
members of your family might receive benefits, too.  These
include: your spouse if he or she is at least 62 years old or
under 62 but caring for a child under age 16; and your children
if they are unmarried and under age 18, under 19 but still in
school, or 18 or older but disabled.  If you are divorced, your
ex-spouse could be eligible for benefits on your record.

Survivors

When you die, certain members of your family may be eligible for
benefits if you earned enough Social Security credits while you
were working.  The family members include: a widow(er) age 60 or
older, 50 or older if disabled, or any age if caring for a child
under age 16; your children if they are unmarried and under age
18, under 19 but still in school, or 18 or older but disabled;
and your parents if you were their primary means of support.  A
special one-time payment of $255 may be made to your spouse or
minor children when you die.  If you are divorced, your ex-spouse
could be eligible for a widow(er)'s benefit on your record. 

Medicare 

There are two parts to Medicare: hospital insurance (sometimes
called "Part A") and medical insurance (sometimes called "Part
B").  Generally, people who are over age 65 and getting Social
Security automatically qualify for Medicare.  So do people who
have been getting disability benefits for 2 years.  Others must
file an application.  Part A is paid for by a portion of the
Social Security tax of people still working.  It helps pay for
inpatient hospital care, skilled nursing care, and other
services.  Part B is paid for by monthly premiums of those who
are enrolled.  It helps pay for such items as doctor's fees,
outpatient hospital visits, and other medical services and
supplies.  

Supplemental Security Income Benefits
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SSI makes monthly payments to people who have a low income and
few assets.  To get SSI, you must be 65 or older or be disabled.
(Children as well as adults qualify for SSI disability payments.)
As its name implies, Supplemental Security Income "supplements"
your income up to various levels-depending on where you live.


  The Federal Government pays a basic rate but most States add
money to that amount-so check with your local Social Security
office for the SSI rates in your State.  Generally, people who
get SSI also qualify for Medicaid, food stamps, and other
assistance. 

  SSI benefits are not paid from Social Security trust funds and
are not based on past earnings.  Instead, SSI benefits are -
financed by general tax revenues and are paid based on the needs
of the recipient.

When And How To File For Social Security Or SSI
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You should file for Social Security or SSI disability benefits
when you become too disabled to work, and for survivors benefits
when a family breadwinner dies.  When you're thinking about
retirement, we recommend that you talk to a Social Security
representative in the year before the year you plan to retire. 
It may be to your advantage to start your retirement benefits
before you actually stop working. 

  To file for benefits or to get information, you can call Social
Security's toll-free number: 1-800-772-1213.  You also can use
that number to set up an appointment to visit your local Social
Security office.  When you file for benefits, you need to bring
along documents that help show you're eligible.  Some typical
examples include birth certificates for all family members
applying for benefits, a marriage certificate if your spouse is
applying, and your most recent W-2 form (or tax return if you're
self-employed).

  The Social Security Administration treats all calls
confidentiallytwhether 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 monitor some incoming and
outgoing telephone calls. 


                    U. S. Department of Health and Human Services
                    Social Security Administration 
                    SSA Publication No. 05-10006 
                    May 1993
                    ICN 451421 

