Ten Things You Might Not Have Known About Social Security

Social Security is a lot like the ozone layer--we all(5) You can increase the size of your retirement
know it's there now and we count on it being there inbenefit by delaying collecting your benefits and by
the future. Yet most people don't know much moreremaining on the job past full retirement age. This
about it than that. Here's a short list of interesting factshigher benefit comes from extra earnings toward your
about Social Security.account and a credit awarded for this patience,
(1) Social Security benefits do not automatically startranging from 3% to 8% of your benefit depending on
coming in the mail the first day of Normal Retirementyour date of birth.
Age. They must be applied for. The easiest way is to(6) For people born after 1937, Normal Retirement Age
set up an appointment with the local Social Securitywill increase. For example, if you were born in 1940, full
office or call 1-800-772-1213.retirement age is 65 and 6 months; born in 1950, it is 66.
(2) To get an official statement of all the earningsAnybody born in 1960 or later will be eligible at age 67.
recorded in your Social Security account, an estimate(7) Social Security disability benefits do not continue
of your current disability and death benefits, and anpast Normal Retirement Age. The month before you
estimate of future retirement benefits, fill out a Formattain normal retirement age the disability benefits are
#7004 Request for Social Security Statement,automatically converted to retirement benefits.
obtainable at your local office.(8) There is a limit to the amount of benefits that can
(3) If you do not find and correct errors in your Socialbe paid on each Social Security record called the
Security record within 3 years, they become part ofMaximum Family Benefit, generally around 150 to 180
your permanent record. Therefore, you might want topercent of the worker's benefit. If this limit is exceeded,
check on them every 3 years or so.the family benefits are reduced.
(4) You can work during retirement, but if you earn too(9) Ex-spouses, widows and divorced widows may all
much it will reduce the size of the benefits you arebe eligible for benefits on a spouse's record. Provided
receiving from age 62 up to your Normal Retirementthe requirements are met, they may even all be
Age. The limits on such earnings are currently $12,480collecting on the same worker's record.
for 2006. Benefits are reduced by $1 for every $2 that(10) There are two Social Security trust funds: one
you earn over this amount. After you attain yourused to finance retirement and survivors benefits and
Normal Retirement Age, you may work as much asthe other used to finance the disability program. Money
you want with no reduction in benefits, although theynot used to pay current benefits is invested only in U.
may become taxable if you earn too much.S. Government Treasury bonds.