Social Security Benefits
How to apply for Social Security, Medicare, Prescription Drug Benefits
Full retirement age for Social Security benefits is gradually increasing to age 67. If you were born between 1943 and 1954, you should think carefully before deciding to take early retirement as the age for receiving Social Security is 66. People born in 1960 or later reach full retirement age at 67. Early retirement will be more costly for both of these age groups. If you were born during these years you will see your Social Security benefit reduced by 25% if you elect to retire at age 62. People born in 1937 or earlier have been able to retire at 62 with only a 20% reduction. Anyone born in 1960 and later will face a 30% reduction. No matter what your full retirement age is, you may start receiving benefits as early as age 62.
You can also retire at any time between age 62 and full retirement age. However, if you start at one of these early ages, your benefits are reduced a fraction of a percent for each month before your full retirement age.
You can use this Social Security calculator to give you a ballpark monthly benefits estimate for early, regular or delayed retirement as well as estimated disability and survivor benefits.
The Social Security Web site gives all kinds of worthwhile information including:
- Calculating your benefits
- How to apply for social security benefits and disability benefits
- Retirement planning information
- Marriage, divorce, name change
- Death in the family
- Ability to download forms
- Order or view publications
- Sign up for a free electronic newsletter on social security matters
A word about Medicare
Medicare is a national health insurance plan for people who are 65 or older. (Although the full retirement age for Social Security benefits is increasing, the age to qualify for Medicare remains 65.) People who are disabled or have permanent kidney failure can get Medicare if they are younger than 65.
IMPORTANT NOTE If you live overseas, you currently are ineligible for Medicare benefits, however, the cost of care where you live may be less expensive out of pocket than paying medicare premiums and co-payments while living in the US.
Medicare has two parts—hospital insurance and medical insurance. Most people have both parts. Hospital insurance, sometimes called Part A, covers inpatient hospital care and certain follow-up care. You already have paid for it as part of your Social Security taxes while you were working. Medical insurance, sometimes called Part B, pays for physicians’ services and some other services not covered by hospital insurance. Medical insurance is optional, and you must pay monthly premiums.
If you are already getting Social Security benefits when you turn 65, your Medicare starts automatically. If you are not getting Social Security, you should sign up for Medicare before your 65th birthday, even if you are not ready to retire. For more information, call us to ask for the publication, Medicare (Publication No. 05-10043).
Medicare supplemental insurance.
In 2007 you will have responsibility for the first $992 of any hospital stay. If your hospital stay is longer than 60 days you will have to pay $248 per day for every day of hospitalization from the 61st day to the 90th day. Starting with the 91st day you spend in the hospital and up to the 150th day you will have responsibility for $496 per day. If you are in a skilled nursing facility from day 21 to day 100 you will be responsible for $124 per day.
Physician visits and other services covered under Part B incur a $131 deductible and a coinsurance amount of 20%.
Medicare supplemental insurance may help pay for these deductibles and coinsurance amounts.
Prescription drug coverage
Sign up for prescription drug coverage as soon as you are eligible because waiting to enroll until you need a lot of prescription drugs you will be subject to a penalty for the remainder of your life.
Subsidies are available if your income is below 150% of the poverty level and have recourses below $10,000 for an individual and $20,000 for a couple. In 2007, Part B premiums will range from $93.50 per month to $162.10 per month depending on income. Individuals with incomes above $80,000 or $160,000 for a couple, will be required to pay more than the base $93.50 per month.
