The Benefits of Social Security

More than 80% of workers expect Social Security to provide some portion of their retirement incomes.¹ Yet many people don’t know important details such as their own full retirement ages. Take this quiz to assess how much you know about Social Security.

1. “Full retirement age,” the age at which you are eligible for your full Social Security benefit, is determined by:

1. Your health
2. A complicated formula that you probably can’t understand
3. The year you were born
4. Your lifetime earnings

2. You are eligible to begin receiving “early retirement” benefits at age ____. However, if you start receiving benefits early, they are reduced by a fraction of a percent for each month before your full retirement age.

1. 55
2. 59½
3. 62
4. 65

3. What was the average monthly Social Security benefit for a retired worker in 2009?²

1. $1,153
2. $2,323
3. $3,232
4. $5,131

4. People who return to work after they start receiving Social Security benefits may be able to receive a higher benefit based on those earnings.

1. True
2. False

5. The longer you wait after reaching age 62 to begin collecting benefits, the higher your monthly benefit will be, until you reach age ____.

1. 69
2. 70
3. 71
4. 72

1) 2009 Retirement Confidence Survey, Employee Benefit Research Institute
2) SocialSecurity.gov, 2009

Answers:

1. c. The year you were born. Visit ssa.gov to determine your full retirement age.
2. c. 62.
3. a. $1,153. The maximum amount for a person retiring in 2009 at full retirement age (66) was $2,323.
4. a. True. Social Security automatically recalculates the benefit amount after the additional earnings are credited to the individual’s earnings record.
5. b. 70.

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2010 Emerald.