Social Security and your retirement plans Social Security is part of the retirement plan of almost every American worker. If you are among the 96 percent of workers who are covered under Social Security, you should know how the system works and what you should receive from Social Security when you retire. The articles in this publication will explain how you qualify for Social Security benefits, how your earnings and age can affect your benefits, what you should think about in deciding when to retire and why you should not rely only on Social Security for your retirement income. The information in this publication provides basic information on Social Security retirement benefits and is not intended to answer all questions. For specific information about your situation, you should talk with a Social Security representative.
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YOUR GUIDE TO SOCIAL SECURITY
JANUARY 27, 2012
Social Security has benefits for family Spouses, children may be eligible for benefits under certain conditions If you are getting Social Security retirement benefits, some members of your family also can receive benefits, including: Spouses who are age 62 or older; Spouses who are younger than 62, if they are taking care of a child entitled on your record who younger than age 16 or disabled; Former spouses, if they are age 62 or older (see “Benefits for a divorced spouse? below); Children up to age 18, or up to 19 if they are full-time students who have not yet graduated from high school; and Children up to age 18, or up to 19 if they are full-time students who have not yet graduated from high school; and If you become the parent of a child (including an adopted child) after you begin receiving benefits, let Social Security know about the child so representatives can decide if the child is eligible for benefits. NOTE: Children’s benefits are available only to unmarried children. However, in certain situations, benefits are payable to a disabled child who marries someone who is also eligible as a disabled child. Spouse’s benefits A spouse who has not worked or who has low earnings can be entitled to as much as one-half of the retired worker’s full benefit. If you are eligible for both your own retirement benefits and for benefits as a spouse, Social Security always pay your own benefits first. If your benefits as a spouse are higher than your retirement benefits, you will get a combination of benefits equaling the higher spouse benefit. If you have reached your full retirement age, and are eligible for a spouse’s or ex-spouse’s benefit and your own retirement benefit, you may choose to receive only spouse’s benefits and continue accruing delayed retirement credits on your SPOUSE BENEFITS...Page 3
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YOUR GUIDE TO SOCIAL SECURITY
SPOUSE BENEFITS, from Page 2 own Social Security record. You may then file for benefits at a later date and receive a higher monthly benefit based on the effect of delayed retirement credits. If you are receiving a pension based on work where you did not pay Social Security taxes, your spouse’s benefit may be reduced. Additional information on pensions from work not covered by Social Security can be found in the publication, “Pensions from work not covered by Social Security.� If spouses want to get Social Security retirement benefits before they reach full retirement age, the amount of the benefit is reduced. The amount of reduction depends on when the person reaches full retirement age. For example: Š If full retirement age is 65, a spouse can get 37.5 percent of the worker’s unreduced benefit at age 62; Š If full retirement age is 66, a spouse can get 35 percent of the worker’s unreduced benefit at age 62;
Š If full retirement age is 67, a spouse can get 32.5 percent of the worker’s unreduced benefit at age 62. The amount of the benefit increases at later ages up to the maximum of 50 percent at full retirement age. If full retirement age is other than those shown here the amount of the benefit will fall between 32.5 percent and 37.5 percent at age 62. However, if your spouse is taking care of a child who is under age 16 or disabled and gets Social Security benefits on your record, your spouse gets full benefits, regardless of age. Here is an example: Mary Ann qualifies for a retirement benefit of $250 and a spouse’s benefit of $400. At her full retirement age, she will receive her own $250 retirement benefit, and Social Security will add $150 from her spouse’s benefit, for a total of $400. If she takes her retirement benefit before her full retirement age, both amounts will be reduced. NOTE: Your current spouse cannot receive spouse’s benefits until you file for retirement benefits.
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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 you and your family - usually 150 to 180 percent of your own benefit payment. If the total benefits due to your spouse and children are more than this limit, their benefits will be reduced. Your benefit will not be affected. Benefits for a divorced spouse Your divorced spouse can get benefits on your Social Security record if the marriage lasted at least 10 years. Your divorced spouse must be 62 or older and unmarried. The amount of benefits he or she gets has no effect on the amount of benefits you or your current spouse can get. Also, if you and your ex-spouse have been divorced for at least two years and you and your ex-spouse are at least 62, he or she can get benefits even if you are not retired.
Your benefits may be taxable About one-third of people who get Social Security have to pay income taxes on their benefits. If you file a federal tax return as an “individual,� and your combined income* is between $25,000 and $34,000, you may have to pay taxes on 50 percent of your Social Security benefits. If your combined income* is more than $34,000, up to 85 percent of your Social Security benefits is subject to income tax. If you file a joint return, you may have to pay taxes on 50 percent of your benefits if you and your spouse have a combined income* that is between $32,000 and
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$44,000. If your combined income* is more than $44,000, up to 85 percent of your Social Security benefits is subject to income tax. If you are married and file a separate return, you probably will pay taxes on your benefits. At the end of each year, Social Security will mail you a Social Security Benefit Statement (Form SSA-1099) showing the amount of benefits you received. You can use this statement when you complete your federal income tax return to find out if you have to pay taxes on your benefits.
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Although you are not required to have federal taxes withheld, you may find it easier than paying quarterly estimated tax payments. For more information, call the Internal Revenue Serviceâ&#x20AC;&#x2122;s toll-free telephone number, 1-800-829-3676, to ask for Publication 554, Tax Guide for Seniors, and Publication 915, Social Security And Equivalent Railroad Retirement Benefits. *On the 1040 tax return, your â&#x20AC;&#x153;combined incomeâ&#x20AC;? is the sum of your adjusted gross income plus nontaxable interest plus one-half of your Social Security benefits.
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YOUR GUIDE TO SOCIAL SECURITY
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When and how Social Security benefits are paid Information on payment methods, what to do if your payment is late Social Security benefits are paid each month in the month following the month for which they are due. For example, individuals would receive their July benefit in August. Generally, the day of the month an individual receives his or her benefit payment depends on the birth date of the person on whose earnings record benefits are received. For example, if you get benefits as a retired worker, your benefit will be determined by your birth date. If you receive benefits based on your spouse’s work, your benefit payment date will be determined by your spouse’s birth date. Date of birth 1st-10th 11th-20th 21st-31st
Benefits paid each month on Second Wednesday Third Wednesday Fourth Wednesday
If you receive both Social Security and SSI benefits, your Social Security payment will arrive on the third of the month and your SSI payment will arrive on the first of the month. If you applied for Social Security benefits on or after May 1, 2011, you must receive your payments electronically. If you did not sign up for electronic payments when you applied for benefits, Social Security strongly urges you to do it now. You must switch to electronic payments by March 1,
2013. If you don’t, the U.S. Treasury Department may send your benefits via the Direct Express® card program to avoid an interruption in payment. Direct deposit is a simple, safe and secure way to receive benefits. Contact your bank to help you sign up or you can sign up for direct deposit by contacting Social Security. Another option is the Direct Express® card program. With Direct Express®, deposits from federal payments are made directly to the card account. It’s quick and easy to sign up for the card. Call the toll-free Treasury Electronic Payment Solution Contact Center at 1-800333-1795 or sign up online at www.GoDirect.org . Also, Social Security can help you sign up. A third option is an Electronic Transfer Account. This low-cost federally insured account lets you enjoy the safety, security and convenience of automatic payments. You can contact Social Security or visit the website at www.eta-find.gov to get information about this program, or to find a bank, savings and loan or credit union near you offering this account. If you get your benefits by mail To be safe, you should cash or deposit your check soon after you receive it. You should not sign your check until you are at the place where you will cash it. If you sign the check ahead of time and lose it, the person who finds it could cash it. A government check must be cashed within 12 months after the date of the check or it will be void. After a year, if you are still entitled to the payment, Social Security will replace the voided check. If your payment is late or missing If you do not receive your electronic payment on its due date, call Social Security immediately at the tollfree number, 1-800-772-1213. If your check is not delivered on its due date, wait three workdays before reporting the missing check to
Social Security. The most common reason checks are late is because a change of address was not reported. If your check is ever lost or stolen, contact Social Security immediately. Your check can be replaced, but it takes time. Returning benefits not due If you receive an electronic payment that you know is not due you, have your financial institution return it to the U.S. Treasury Department. If you receive a check that you know is not due you, take it to any Social Security office or return it to the U.S. Treasury Department at the address on the check envelope. You should write VOID on the front of the check and enclose a note telling why you are sending the check back. If you knowingly accept payments that are not due you, you may face criminal charges. Paying taxes on your benefits About one-third of all people receiving Social Security benefits have to pay taxes on their benefits. You will have to pay taxes on your benefits if you file a federal tax return as an “individual,” and your total income is more than $25,000. If you file a joint return, you will have to pay taxes if you and your spouse have a total income that is more than $32,000. If you are married and file a separate return, you probably will pay taxes on your benefits. To have federal taxes withheld, get a Form W-4V from the Internal Revenue Service by calling the tollfree telephone number, 1-800-829-3676, or by visiting the Social Security website. After completing and signing the form, return it to the local Social Security office by mail or in person. For more information, call the Internal Revenue Service’s toll-free number, 1-800-829-3676, to ask for Publication 554, Tax Guide for Seniors, and Publication 915,Social Security and Equivalent Railroad Retirement Benefits.
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Do you have questions? We have answers. You may be faced with many decisions following the death of a loved one. We take the time to listen to your family’s needs and help you during this difficult time. We believe that each service should be as unique and special as the person who has died, and we work with each family to tailor every aspect of the service to their specific needs and wishes. We take care of every detail, from cemetery arrangements and coordination with clergy, musicians, florists, pallbearers, service groups and caterers, to writing and posting obituaries and notifying government agencies, and even filing life insurance claims, if requested. Whether you’re coming to us after the death of a loved one or to pre-plan your own services, we can help. What can we do for you?
Here are just a few comments from our families. “Dan really took the time to answer all of my children’s questions when their grandfather died, not only before the visitation but also at the cemetery as they said goodbye.” “Pfannebeckers arranged every detail, leaving my family with the peace that everything would be taken care of.”
If You Aren’t at Your Last Job, Why Is Your 401(k)? Leaving a 401(k) with a previous employer could mean leaving it alone with no one to watch over it. At Edward Jones, we can explain options for your 401(k) and help you select the one that’s best for you. If you’d like to roll it over to an Edward Jones Individual Retirement Account (IRA), we can help you do it without paying taxes or penalties. And you can feel confident that someone is looking out for you and your 401(k).
To find out why it makes sense to talk with Edward Jones about your 401(k) options, call or visit your local financial advisor today. Scott A Ferguson Financial Advisor . 1325 Broadway Denison, IA 51442 712-263-5636
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Medicare introduces 5-star special enrollment A column from SHIIP Medicare uses information from member satisfaction surveys, plans and health care providers to give overall performance star ratings to Part D drug plans, Medicare Advantage and cost plans. Beginning on December 8, 2011, plans with a 5star rating were able to qualify for a special enrollment period. Kris Gross from the State of Iowa’s Senior Health Insurance Information Program (SHIIP) explained, “Most Iowans have to choose the Medicare drug plan or Medicare Advantage plan they want during the open enrollment period October 15 through December 7 and must stay with the plan they choose for the next calendar year. If they qualify for a special enrollment period they will be able to change plans at other times during the year.” The new 5-star special enrollment period will allow Iowans on Medicare to change one time during the special enrollment period to a 5-star drug plan,
Medicare Advantage plan or cost plan offered in their area. They must meet plan requirements to qualify. The special enrollment period began on December 8, 2011, and runs through November 30, 2012. Iowa has nine plans rated 5-stars, including two drug plans, four Medicare Advantage plans and three cost plans. Individuals might use the 5-star special enrollment period to enroll in a 5-star drug plan if they missed enrolling in a drug plan earlier, however any late enrollment penalty will still apply. If you start taking new prescriptions and your current drug plan does not cover the new prescriptions, you might find that a 5-star plan covers the new drugs. It’s important to do a plan comparison using the Medicare website before making any change. This special enrollment period can also be used to change from a current Medicare Advantage plan to a 5-star Medicare Advantage plan. If you’re in original Medicare you can also enroll in a 5-star Medicare Advantage plan using this new en-
rollment period. Gross cautioned, “It is very important to discuss with Medicare or SHIIP all the consequences of a potential change under the 5-star special enrollment period. Each change has special considerations.” SHIIP has available a “5-Star Plan Ratings” factsheet which individuals can request by calling 1-800351-4664 (TTY 1-800-735-2942) or view on the SHIIP website, www.therightcalliowa.gov (see the “Medicare” section). For more information about Medicare enrollment periods, call SHIIP or e-mail shiip@iid.iowa.gov. SHIIP counselors are also available across the state to meet with individuals and answer questions. Crawford County Memorial Hospital in Denison is the sponsor of the SHIIP program in this area. To arrange an appointment with a local volunteer call 712-265-2509. Individuals can also call SHIIP or use the SHIIP website using the contact information earlier in this article to find a counselor. SHIIP is a free, confidential service of the state of Iowa.
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YOUR GUIDE TO SOCIAL SECURITY
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Social Security online www.SocialSecurity.gov
ONLINE RESOURCES Many forms and publications are easily accessible online.
RETIRE ONLINE Watch a video featuring Patty Duke
Replace a lost Social Security card Complete an Application for a Social Security Card (Form SS-5) For U.S. born citizens, show us proof of your identity. Take or mail your completed application and documents to your local Social Security office. We will return any document you mail to us. All documents must be either originals or copies certified by the issuing agency. We cannot accept photocopies or notarized copies of documents. Some documents we can accept as proof of identity include non-expired: • U.S. driver’s license • State-issued non-driver identification card • U.S. passport
Extra Help Application • Anyone who has Medicare may apply for Extra Help with Medicare prescription drug plan costs. • It is now easier to qualify for Extra Help under a new law because some things no longer count as resources and income. • The Extra Help is estimated to be worth an average of $3,900.00 per year. • Not sure if you qualify? If in doubt fill it out. • You can apply online at www.socialsecurity.gov • Call Social Security at 1-800-772-1213 (TTY 1-800325-0778) to apply over the phone.
If you are not a U.S. born citizen addition information is needed, see www.socialsecurity.gov/ss5doc/.
The Social Security Statement Your Social Security Statement is a concise, easy-toread personal record of the earnings on which you have paid Social Security taxes during your working years and a summary of the estimated benefits you and your family may receive as a result of those earnings. • Benefit estimates in your Statement play an important role in financial planning. When combined with your savings, investments and other pensions, your Social Security benefits can help you build a secure future for you and your family. • The Statement can help ensure your reported earnings and other important information is correct on your record. • The Statement shows you all the protection you are earning under Social Security and provides your full retirement age. • Each year, the Statement is mailed to you about three months before your birthday, from age 25 until your Social Security benefits begin.
How to sign up for Social Security Individuals can apply for retirement benefits online at https://secure.ssa.gov/iCLM/rib or can call Social Security’s toll-free number, 1-800-772-1213. Individuals can also make an appointment to visit any Social Security office to apply in person. Area Social Security offices are: 818 North Bella Vista Drive Carroll, IA 51401 Local number: 1-866-572-8381 TTY 1-800-325-0778 3555 Southern Hills Drive Sioux City, IA 51106 Local number: 1-866-338-2859 TTY 1-712-274-8986 Mid-America Center 20 Arena Way Suite 1 Council Bluffs, IA 51501 Local number: 1-866-331-9094 TTY 1-800-325-0778
Before going to a Social Security office, individuals are encouraged to call first. Along with the local numbers, Social Security’s national toll-free number is 1-800-772-1213. This article provides basic information on Social Security retirement benefits and is not intended to answer all questions. For specific information about your situation, talk with a Social Security representative. Depending on your circumstances, you will need some or all of the documents listed below. But do not delay applying for benefits because you do not have all the information. If you do not have a document you need, we can help you get it. Information needed: Your Social Security number; Your birth certificate; Your W-2 forms or self-employment tax return for last year; Your military discharge papers if you had military service; Your spouse’s birth certificate and Social Security number if he or she is applying for benefits;
Children’s birth certificates and Social Security numbers, if you are applying for children’s benefits; Proof of U.S. citizenship or lawful alien status if you (or a spouse or child applying for benefits) were not born in the United States; and The name of your financial institution, the routing number and your account number, so your benefits can be deposited directly into your account. If you do not have an account at a financial institution or prefer receiving your benefits on a prepaid debit card you can receive a Direct Express® card. For more information, visit www.GoDirect.org. You will need to submit original documents or copies certified by the issuing office. You can mail or bring them to Social Security. Social Security will make photocopies and return your documents. Right to appeal If you disagree with a decision made on your claim, you can appeal it. For an explanation of the steps you can take, call Social Security at 1-800-772-1213 and ask for The Appeals Process (Publication No. 05-10041).
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YOUR GUIDE TO SOCIAL SECURITY
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FILE ONLINE What you will need:
• Date, place of birth, Social Security number • Direct deposit information • Wages/self employment earnings – last year, this year, next year • Employer(s) name, address, – last year, this year • Military service dates before 1968 • Spouse or former spouse – name, date of birth, Social Security number, date, place of marriage, if ended, date of death or divorce • Copy of your Social Security Statement is helpful The content of our home page changes as additional services become available to keep you informed on the latest news. Watch for updated information.
Direct Deposit With direct deposit, you can depend on your payment arriving in your account on time, every time. If you do not already have direct deposit, there are good reasons to sign up. For one, less money and time spent driving to the bank to cash your check helps you save. Second, fewer paper checks, envelopes, and stamps, and less fuel to deliver the checks mean less waste and pollution for the environment. With direct deposit, you know your payment will be in your account on time no matter what. When on vacation, direct deposit ensures payments will be deposited into your account on time, so there is no reason to worry about the safety of your benefit or to ask a neighbor to look out for your check when you are away. To learn more about Direct Deposit of your benefit payments and to sign up, visit our website at www.socialsecurity.gov/deposit.
Continued from Page 6 You have the right to be represented by an attorney or other qualified person of your choice. For more information, ask for Your Right To Representation (Publication No. 05-10075). If you work and get benefits at the same time You can continue to work and still receive retirement benefits. Your earnings in (or after) the month you reach your full retirement age will not reduce your Social Security benefits. However, your benefits will be reduced if your earnings exceed certain limits for the months before you reach your full retirement age. (See Age to receive full Social Security benefits, to find your full retirement age.) Here is how it works: If you are younger than full retirement age, $1 in benefits will be deducted for each $2 in earnings you have above the annual limit. In the year you reach your full retirement age, your benefits will be reduced $1 for every $3 you earn over an annual limit until the month you reach full
Estimate your retirement benefits How can I calculate my own retirement benefit estimates? We suggest you use our Retirement Estimator at www.socialsecurity.gov/estimator. Our Retirement Estimator produces estimates based on your actual Social Security earnings record, so it is very accurate. Also, you can use it to test different retirement scenarios based on what age you decide to start benefits or get an estimate with changes to your future benefits. You also can go to our Benefits Calculators at www.socialsecurity.gov/planners/benefitcalculators.ht m and use the earnings shown on your Social Security Statement to calculate estimates. The calculators will show your retirement benefits as well as disability and survivor benefit amounts. These benefit calculators are not linked to your Social Security record, so you do not need to establish a password to use them.
retirement age. Once you reach full retirement age, you can keep working, and your Social Security benefit will not be reduced no matter how much you earn. If, during the year, your earnings are higher or lower than you estimated, let Social Security know as soon as possible so your benefits can be adjusted. If you want more information on how earnings affect your retirement benefit, ask for How Work Affects Your Benefits (Publication No. 05-10069), which has current annual and monthly earnings limits. 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 earn under a certain limit, regardless of your yearly earnings. If you are self-employed, the work you do in your business is taken into consideration as well. If you want more information on how earnings affect your retirement benefit, ask for How Work Affects Your Benefits (Publication No. 05-10069), which has current annual and monthly earnings limits.
Receive Updates by email Social Security periodically changes the content and look of the website to better serve you and keep you informed on developments regarding: • Emergency information • Disability Research • Press Releases • Social Security News and more You can sign up to receive free emails that let you know when your favorite socialsecurity.gov web pages have been updated. You can tell us how often you wish to be notified (immediately, daily, weekly, or monthly). Email updates are a free service from socialsecurity.gov. Your email address will only be used to register you for email notifications and allow you to access your account.
About pensions from work not covered by Social Security If you get a pension from work where you paid Social Security taxes, that pension will not affect your Social Security benefits. However, if you get a pension from work that was not covered by Social Security, for example, the federal civil service, some state or local government employment or work in a foreign country - your Social Security benefit may be reduced. For more information, ask for Government Pension Offset (Publication No. 05-10007), for government workers who may be eligible for Social Security benefits on the earnings record of a spouse; and Windfall Elimination Provision (Publication No. 05-10045), for people who worked in another country or government workers who also are eligible for their own Social Security benefits.
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YOUR GUIDE TO SOCIAL SECURITY
JANUARY 27, 2012
Actress Patty Duke applies online for Social Security and Medicare benefits Duke volunteers time to promote Social Security’s online services After years of telling people they can apply online for Social Security in their pajamas, Patty Duke took her own advice. Duke applied online for retirement and Medicare benefits from home at www.socialsecurity.gov when she turned 65 on December 14. “I had no idea this would be such a momentous occasion,” said Duke, who for three years has volunteered her time promoting Social Security’s online
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services in numerous public service announcements and media interviews. In an online video, Duke put character acting aside and showed everyone what happened when she and her husband Mike Pearce sat down at the kitchen table, turned on their laptop, and applied for her retirement and Medicare benefits. “All of us at Social Security wish Patty a very happy birthday,” Michael J. Astrue, commissioner of Social Security, stated when the actress turned 65. “She’s a Hollywood legend and an American treasure who reaches a very important milestone today. True to form, she is the one giving us the birthday present by showing her fellow baby boomers the easiest way to apply for benefits.” In 2009, Duke reprised her roles as the identical cousins, Patty and Cathy Lane from the “Patty Duke Show”, for a series of public service announcements
promoting Social Security’s online services. In 2010, Duke teamed up with the surviving “Patty Duke Show” cast members for an additional set of spots. Earlier this year, she teamed up with entertainment icon George Takei to encourage people of all ages to “Boldly Go” to www.socialsecurity.gov. In the three years since Duke has volunteered her time with Social Security, millions of people have visited the agency’s website and the percentage of online retirements has more than doubled. “While I just applied for retirement benefits, I’m not retiring from being a Social Security spokesperson,” Duke stated on December 14. “I urge my fellow baby boomers to go online to www.socialsecurity.gov. If you’re not sure how to get started on the computer, ask a loved one to help you out. I did, and it was so easy.”
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You may be surprised at what a difference chiropractic treatment can make in your overall well-being. If you experience any of the symptoms listed below on a regular basis, let us point the way toward better spinal health. • Neck, Shoulder & Arm Pain • Joint Pain • Lower Back, Hip & Leg Pain
• Headaches • Tingling or Numbness • Sports Injuries
Hours: Monday 8 a.m.-5:30 p.m. • Tuesday 8 a.m.-5:30 p.m. • Wednesday 8 a.m.-1 p.m. • Thursday 8 a.m.-5:30 p.m. • Friday 8 a.m.-5 p.m. Saturday 8-10:30 a.m.
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• Light Housekeeping • Grocery Shopping • Meal Preparations • Laundry Contact Us or your Doctor About the Benefits We Can Offer You Through Our Programs
HOME HEALTH AND HOSPICE SERVICES: • Nursing • Health Aide • Physical Therapy • Occupational Therapy • Speech Therapy • Social Work (Hospice only) Agency services are billed to one of the following: Medicare, Medicaid, State Grant, Elderbridge Agency on Aging, Insurance, Private Pay or Sliding Fee Scale based on income and medical expenses.
For more information, call (712) 263-3303 or stop at our office at 105 North Main St. in Denison er ys Th e To Ca wa l re A
FARMERS
®
FINANCIAL SOLUTIONS Feel good about your future.
MISSION STATEMENT: Providing the highest quality of care and meeting the needs of the community in the most cost-effective way.
Jay Marten Insurance & Financial Services Agent/Representative
Call 712-263-2122 to place an ad.
Public Health Programs Include: • Family Planning
• Family STEPS Visitation
• Breast & Cervical Cancer Early Detection Program and Wise Woman
• Child Health
• Communicable Disease Follow-up Crawford County Home Health, Hospice & Public Health 105 North Main Street Denison, Iowa 51442 (712) 263-3303 www.crawfordcountyhealth.com
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• Immunizations • Community Equipment Loan Program
• Lead Screening • Child Care Nurse Consultant • hawk-i Insurance Outreach • Free Blood Pressure Clinics • Maternal Health
• Emergency Preparedness Activities
• Flu Clinics
• One Time Mom &Baby Visits
• Spanish Interpreters on Staff
• Other Health Promotion Activities
A whole new look, and a whole new attitude
112 Avenue C • Denison, IA 51442
877-758-8031 or 712-263-5043 Offering: Retirement, Retirement Savings, Retirement Funding, Retirement Plans, IRAs, Roth IRAs, IRA Rollovers, 401(k) Plans, College Savings, Estate Protection, Tax-Deferred Strategies Securities offered through Farmers Financial Solutions, LLC Member FINRA & SIPC 85-SOC. SEC. (SOCIAL SECURITY-MARTEN) MM
www.DBRnews.com
JANUARY 27, 2012
YOUR GUIDE TO SOCIAL SECURITY
How to contact Social Security
Social Security’s website, www.ssa.gov, is a valuable resource for information about all of Social Security’s programs. In addition to using the website, individuals can call Social Security toll-free at 1800-772-1213. Social Security treats all calls confidentially and can answer specific questions from 7 a.m. to 7 p.m., Monday through Friday. Social Security can provide information by automated phone service 24 hours a day. (Use the automated response system to tell Social Security a new address or request a replacement Medicare card.) Individuals who are deaf or hard of hearing may call the TTY number, 1-800-3250778. Social Security also wants to make sure individuals receive accurate and courteous service. That is why a second Social Security representative monitors some telephone calls.
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Information about the Proof of Income letter
Individuals who need proof that they are receiving income and/or services from Social Security can request a ”Proof of Income“ letter the Social Security’s Proof of Income letter web page at https://secure.ssa.gov/apps6z/BEVE/main.html. The Proof of Income letter is sometimes called a ”budget letter,“ a ”benefits letter,“ or a ”proof of award letter.“ What is a Proof of Income letter? The letter can be used as proof of your: income when you apply for a loan or mortgage; income for assisted housing or other state or local benefits; current Medicare health insurance coverage; retirement status; disability; and/or age. Individuals can select the information they would like on it. What you should know A Proof of Income letter will arrive in the mail in about 10 days. It will be mailed to the address on file for you at Social Security. Individuals who need proof sooner should contact their local Social Security office. Individuals can request a letter only for themselves. Family members must request their own letters. For security reasons, the website has a 30 minute time limit to complete each page. Those requesting a Proof of Income letter online will be given notice when time is about to run out; individuals can then get more time to finish. If you have moved and have not reported this to Social Security, you will need to report this change before Social Security can process your request. If you have moved and have reported this to Social Security recently, you will need to contact Social Security before your request can be processed.
Social Security and leaving the United States
Individuals who are U.S. citizens can travel to or live in most foreign countries without affecting their Social Security benefits. There are, however, a few countries where Social Security cannot send payments. These countries are Cambodia, Cuba, North Korea, Vietnam and areas that were in the former Soviet Union (other than Armenia, Estonia, Latvia, Lithuania and Russia). However, exceptions can be made for certain eligible beneficiaries in countries other than Cuba and North Korea. For more information about these exceptions, contact your local Social Security office. If you work outside the United States, different rules apply in determining if you can get benefits. For more information, call Social Security to ask for a copy of the publication, Your Payments While You Are Outside The United States (Publication No. 05-10137).
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AUTHORIZED INDEPENDENT AGENTS FOR
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Wellmark Medicare supplement insurance plans are not affiliated with any government agency. Wellmark Blue Cross and Blue Shield of Iowa is an Independent Licensee of the Blue Cross and Blue Shield Association. © 2011 Wellmark, Inc., Des Moines, IA 23P013-2012-IA
Read us online: www.DBRnews.com
If you have planned a wedding, saved for your children’s college education, and drawn up a will or begun the estate-planning process, doesn’t it also make good sense to give serious thought to funeral planning? Without a plan in place, those responsible for planning your funeral will have to make major decisions and purchases within 24 to 48 hours of your death. On the other hand, preplanning allows you to decide for yourself what method of disposition you prefer and what kind of services you wish to have. Funeral preplanning also allows you to make these decisions with a clear head, and it allows your surviving family and friends to focus on grieving and recovery. Quote: "Our death is not an end if we can live on in our children and the younger generation. For they are us, our bodies are only wilted leaves on the tree of life." Albert Einstein 85-SOCIALSEC (PREPARING FOR-HUEBNER/CONSIDER) HM
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YOUR GUIDE TO SOCIAL SECURITY
JANUARY 27, 2012
How do you qualify for retirement benefits? When you work and pay Social Security taxes, you earn “credits” toward Social Security benefits. The number of credits you need to get retirement benefits depends on when you were born. If you were born in 1929 or later, you need 40 credits (10 years of work). If you stop working before you have enough credits to qualify for benefits, the credits will remain on your Social Security record. If you return to work later on, you can add more credits so that you qualify. We cannot pay any retirement benefits until you have the required number of credits.
How much will your retirement benefit be? Your benefit payment is based on how much you earned during your working career. Higher lifetime earnings result in higher benefits. If there were some years when you did not work or had low earnings, your benefit amount may be lower than if you had worked steadily. Your benefit payment also is affected by the age at which you decide to retire. If you retire at age 62 (the earliest possible retirement age for Social Security), your benefit will be lower than if you wait until later to retire. This is explained more in an article on this page.
Retirement benefits for widows and widowers Widows and widowers can begin receiving Social Security benefits at age 60, or at age 50 if they are disabled. And they can take a reduced benefit on one record and later switch to a full benefit on the other record. For example, a woman could take a reduced widow’s benefit at 60 or 62 and then switch to her full (100 percent) retirement benefit when she reaches full retirement age. The rules vary depending on the situation, so individuals should talk to a Social Security representative about the available options.
Delayed retirement You may choose to keep working even beyond your full retirement age. If you do, you can increase your future Social Security benefits in two ways. Each additional year you work adds another year of earnings to your Social Security record. Higher lifetime earnings may mean higher benefits when you retire. Also, your benefit will increase automatically by a certain percentage from the time you reach your full retirement age until you start receiving your benefits or until you reach age 70. The percentage varies depending on your year of birth. For example, if you were born in 1943 or later, Social Security will add eight percent per year to your benefit for each year that you delay signing up for Social Security beyond your full retirement age. NOTE: 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. Other information about Medicare is in the article, “A word about Medicare,” located elsewhere in this publication.
You can get retirement benefit estimates You can use the online Retirement Estimator to get immediate and personalized retirement benefit estimates to help you plan for your retirement. The online Retirement Estimator is a convenient, secure and quick financial planning tool, because it eliminates the need to manually key in years of earnings information. The estimator also will let you create “what if” scenarios. You can, for example, change your “stop work” dates or expected future earnings to create and compare different retirement options. For more information, call toll-free at 1-800-7721213 and ask for Online Retirement Estimator (Publication No. 05-10510) or How To Use The Online Retirement Estimator (Publication No. 05-10511) or visit Social Security’s Retirement Estimator at www.ssa.gov/estimator/.
Full retirement age listed by year of birth If you were born in 1944 or earlier, you are already eligible for your full Social Security benefit. If you were born from 1943 to 1960, the age at which full retirement benefits are payable increases gradually to age 67. The following chart lists the full retirement age by year of birth. Age to receive full Social Security benefits Year of birth Full retirement age 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 Note: People who were born on January 1 of any year should refer to the previous year.
Early retirement You can get Social Security retirement benefits as early as age 62. However, you will receive a reduced benefit if you retire before your full retirement age. For example, if you retire at age 62, your benefit would be about 25 percent lower than what it would be if you waited until you reach full retirement age. Some people stop working before age 62. But if they do, the years with no earnings will probably mean a lower Social Security benefit when they retire. Note: Sometimes health problems force people to retire early. If you cannot work because of health problems, you should consider applying for Social Security disability benefits. The amount of the disability benefit is the same as a full, unreduced retirement benefit. If you are receiving Social Security disability benefits when you reach full retirement age, those benefits will be converted to retirement benefits. For more information, call toll-free at 1-800-772-1213 and ask for Disability Benefits (Publication No. 05-10029).
Deciding when to retire Choosing when to retire is an important but personal decision. Regardless of the age you choose to retire, it is a good idea to contact Social Security in advance to learn the available options and make an informed decision. In some cases, your choice of a retirement month could mean higher benefit payments for you and your family. In deciding when to retire, it is important to remember that financial experts say you will need 7080 percent of your pre-retirement income to have a comfortable retirement. Since Social Security replaces only about 40 percent of pre-retirement income for the average worker, it is important to have pensions, savings and investments. You should apply for benefits about three months before the date you want your benefits to start. If you are not quite ready to retire, but are thinking about doing so in the near future, you may want to use Social Security’s convenient and informative Retirement Planner.
JANUARY 27, 2012
YOUR GUIDE TO SOCIAL SECURITY
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Medicare, a four-part health insurance plan What you need to know about Medicare Medicare is a health insurance plan for people who are age 65 or older. People who are disabled or have permanent kidney failure can get Medicare at any age. Medicare has four parts: Hospital insurance (Part A) helps pay for inpatient hospital care and certain follow-up services. Medical insurance (Part B) helps pay for doctors’ services, outpatient hospital care and other medical services. Medicare Advantage plans (Part C) are available in many areas. People with Medicare Parts A and B can choose to receive all of their health care services through a provider organization under Part C. Prescription drug coverage (Part D) helps pay for medications doctors prescribe for medical treatment. If you are already getting Social Security benefits
when you turn 65, your Medicare hospital insurance (Part A) starts automatically. If you live in the United States you will usually be enrolled in medical insurance (Part B) automatically. Residents of Puerto Rico or foreign countries will not receive Part B automatically. They must elect this benefit. If you are not already getting Social Security, you should contact us about three months before your 65th birthday to sign up for Medicare. You can sign up for Medicare even if you do not plan to retire at age 65. For more information, ask for Medicare (Publication No. 05-10043). Help with Medicare expenses for people with low income If you have a low income and few resources, your state may pay your Medicare premiums and, in some cases, other “out-of-pocket” medical expenses, such as deductibles and coinsurance. Only your state can decide whether you qualify for help from the Medicare Savings programs. To find out, contact your state or local medical assistance (Medicaid) agency, social services or welfare office.
For more information about Medicare, see the Senior Health Insurance Information Program (SHIIP) columns published each month in the Denison Bulletin and Review, or log onto the Bulletin and Review’s website at www.DBRnews.com.
Website: www.medicare.gov Toll-free number: 1-800-MEDICARE (1-800-6334227) TTY number: 1-877-486-2048 Or refer to the number and website at the bottom of the article on this page.
Improve your health The National Consumers League launched a new public education campaign, Script Your Future, to raise awareness among patients about the consequences of not taking medication as directed. In support of this campaign, Thrifty White is
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To find out more about our services, rates and resources available call 712-263-3114
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offering our Synchronized Prescription refill service. It is a convenient, new way to have all your prescriptions filled on the same day. It’s easy and it’s free! See your pharmacist today!
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“Extra help” with Medicare prescription costs If you have limited income (tied to the federal poverty level) and limited resources, you may qualify for extra help to pay for your prescription drugs under Medicare Part D. Social Security’s role in this program is to: help you understand how you may qualify; help you complete the extra help application; and process your application. To see if you qualify or to apply, call Social Security’s toll-free number, 1-800-772-1213 or see the link Apply for Medicare Benefits, which can be found online at www.ssa.gov/pgm/medicare.htm.
1320 Broadway Denison, IA
222 S. 20th • Denison 712-263-2639 7-SOC SEC (SOCIAL SECURITY-EVENTIDE) EM
712.263.4646 1.800.867.8145
Thrifty White Pharmacy Staff
Store Hours: Monday - Friday: 8:30 am - 6 pm • Saturday: 8:30 am - 5:00 pm • Sunday: Closed 7-SOC SEC (Synchronized Refill-Thirfty White) TM
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YOUR GUIDE TO SOCIAL SECURITY
JANUARY 27, 2012
Store: 712-263-6151 Pharmacy: 712-263-6161 Floral Shop: 712-263-8844
PHARMACY 1426 BROADWAY • DENISON
PHARMACY HOURS: Mon.-Fri. 8:00 a.m. to 6 p.m.; Sat. 8:00 a.m. to 5 p.m.
From left: Sharon Claypool, Tech; Beth Fredericks, Tech; Kitty Caporale, Tech; Mahanaim Peterson, Tech; Heather Zeimen, Pharm D; and Brittany Okker, Clerk.
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