Social Security Questions and
Answers: Retirement
By Erin Thompson, Public Affairs Specialist in Toledo, OH
Guest Column
Question:
I served in the military, and I’ll receive a military
pension when I retire. Will that affect my Social Security
benefits?
Answer:
You can get both Social Security retirement benefits and
military retirement at the same time. Generally, we don’t
reduce your Social Security benefits because of your
military benefits. When you’re ready to apply for Social
Security retirement benefits, go to
www.socialsecurity.gov/applyonline. This is the fastest
and easiest way to apply. For your convenience, you can
always save your progress during your application and
complete it later. We thank you for your military service!
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. You
may be able to estimate your benefit by using our
Retirement Estimator, which offers estimates based on
your Social Security earnings. You can find the
Retirement Estimator at
www.socialsecurity.gov/estimator.
Question:
I know that Social Security’s full retirement age is
gradually rising to 67. But does this mean the “early”
retirement age will also go up by two years, from age 62 to
64?
Answer:
No. While it is true that under current law the full
retirement age is gradually rising from 65 to 67, the
“early” retirement age remains at 62. Keep in mind, however,
that taking early retirement reduces your benefit amount.
For more information about Social Security benefits, visit
www.socialsecurity.gov/planners/retire.
Question:
I want to estimate my retirement benefit at several
different ages. Is there a way to do that?
Answer:
Use our Retirement Estimator at
www.socialsecurity.gov/estimator
to get an instant, personalized retirement benefit estimate
based on current law and your earnings record. The
Retirement Estimator, which also is available in
Spanish, lets you create additional "what if" retirement
scenarios based on different income levels and “stop work”
ages.
Question:
Why doesn’t my estimate using the Retirement Estimator
take into account my work as a teacher? I’ve worked for 20
years for the state and thought it would count.
Answer:
If you work for a state or local government agency—including
a school system, college, or university—your earnings may
not be covered by Social Security. If you are covered only
by your state or local pension plan and you don't pay Social
Security taxes, your earnings won't be shown on your Social
Security record. (Your record will show your Medicare wages
if you pay into that program.) For information on how
your pension from non-covered state or local employment may
affect the amount of your Social Security benefit, visit
www.socialsecurity.gov/retire2/wep-chart.htm.
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