Questions & Answers

(January, 2009)

General

Question: A friend told me that Social Security has a great new radio show on the Internet. Do you?

Answer: Your friend is talking about our new podcast, "Deciding When to Start Receiving Retirement Benefits," which is available now at www.socialsecurity.gov/podcasts. The conversational program talks about factors to consider when you're thinking about when to retire. You can listen to the podcast now at www.socialsecurity.gov/podcasts.

Question: I am receiving Social Security benefits and I recently went back to work. Do I have to pay Social Security (FICA) taxes on my income?

Answer: Yes. By law, your employer must withhold FICA taxes from your paycheck. Although you are retired, you do receive credit for those new earnings. Each year Social Security automatically credits the new earnings and refigures your monthly benefit. If your new earnings are higher than in any earlier year used to calculate your current benefit, your monthly benefit could increase. For more information, visit www.socialsecurity.gov or call us at 1-800-772-1213 (TTY 1-800-325-0778).

Retirement

Question: How are my retirement benefits calculated?

Answer: Your Social Security benefits are based on earnings averaged over your lifetime. Your actual earnings are first adjusted or "indexed" to account for changes in average wages since the year the earnings were received. Then we calculate your average monthly indexed earnings during the 35 years in which you earned the most. We apply a formula to these earnings and arrive at your basic benefit. This is the amount you would receive at your full retirement age. For some, that is age 65. However, beginning with people born in 1938 or later, that age gradually increases until it reaches 67 for people born after 1959. You can calculate your estimated benefit by using our Retirement Estimator which offers estimates based on your Social Security earnings. Also, you can find your estimate on the annual Social Security Statement we send you about three months before your birthday each year.

Question: In a few years I will turn 62 and would like to retire. I know that Social Security's full retirement age is gradually rising from 65 to 67. But does this mean the "early" retirement age will also be going up by two years, from age 62 to 64?

Answer: No. While it is true that the full retirement age is gradually rising from 65 to 67, the "early" retirement age will remain at 62. So you can go ahead with your plans to retire early. Keep in mind, however, that by taking early retirement, your benefits will be reduced. For more information on the factors to consider, read the fact sheet "When to Start Receiving Retirement Benefits" at www.socialsecurity.gov/pubs/10147.html.

Disability

Question: I've heard there is a way for my son to get his disability application on the "fast-track." How does this work?

Answer: Take a look at whether you son has one of the 50 impairments—25 rare diseases and 25 cancers—on the list at www.socialsecurity.gov/compassionateallowances If your son has one of those impairments, it may allow his application to be fast-tracked. Recently Social Security announced this "Compassionate Allowances" initiative. It allows applicants to receive a decision on their disability application within days, if their medical conditions are so severe that they obviously meet Social Security’s definition of disability. Over time, more diseases and conditions will be added to the list. Learn more at www.socialsecurity.gov/compassionateallowances.

Question: I am expecting a child and will be out of work for six months. Can I qualify for short-term disability?

Answer: No. Social Security pays only for total disability — conditions that render you unable to work and are expected to last for at least a year or end in death. No benefits are payable for partial disability or short-term disability, including benefits while on maternity leave. The disability evaluation process considers any current work activity you are doing, and your medical condition and how it affects your ability to work. For more information, we recommend that you read the publication, Disability Benefits, at www.socialsecurity.gov/pubs/10029.html or call us at 1.800.772.1213 (TTY 1.800.325.0778) and request a copy.

Supplemental Security Income

Question: Next month I'll turn 65 and I thought I'd be eligible for Supplemental Security Income (SSI). But my neighbor told me I'd probably be turned down because I have a friend who said he might help support me. Is this true?

Answer: Only if your friend does help support you would it have an effect on whether you get SSI. Whether you can get SSI depends on your income and resources (the things you own). If you have low income and few resources, you may be able to get SSI. However, if you are receiving support from your friend or from anyone else, that income will be considered when making a decision on your SSI eligibility and amount. Support includes any food or shelter that is given to you, or is received by you because someone else pays for it. For more information, visit www.socialsecurity.gov and select "Supplemental Security Income" or call us at 1.800.772.1213 (TTY 1.800.325.0778) and request a copy of our publication, Supplemental Security Income.

Ginny Jordan is a Public Affairs Specialist for the Social Security Administration. Her weekly column on all things Social Security appears in the Sunday Edition of the Sun-Sentinel.

Ginny has agreed to let us reprint her articles here for your convenience.

Thank you Ginny!