| Social Security column On retirement and Medicare drug cost assistance By Karyl Richson Social Security Public Affairs Specialist in Milwaukee, WI |
| IS A COMFORTABLE RETIREMENT ON YOUR WISH LIST? |
| Is a financially comfortable retirement something that you are hoping to receive as a gift this holiday season? Too many Americans are finding themselves in that "wish list" category for having the retirement they want. According to the most recent Retirement Confidence Survey from the Employment Benefit Research Institute, less than half of workers age 45 and older have even tried to calculate how much money they will need to save for retirement. That could leave them at some holiday season in the near future hoping that a comfortable retirement is given to them in a nicely-wrapped package. For most American workers, Social Security forms the largest part of their financial foundation in retirement. If you have average earnings, your Social Security retirement benefits will replace about 40 percent of your income. Most financial advisors say you will need 70 to 80 percent of your work income to maintain your pre-retirement standard of living comfortably. So, you will need to make up the difference with pensions, savings or investments. You can find a personalized estimate of your Social Security benefit by checking your Social Security Statement, which is mailed each year to every worker age 25 and older approximately three months before their birthday. Read it carefully because it contains information vital to your personal financial future. It shows not only how much you and your family might expect to receive from Social Security when you retire, but also what Social Security would provide if you become disabled or die. To learn more, visit www.socialsecurity.gov/mystatement. You also may want to visit Social Security's financial planning website at www.socialsecurity.gov/planners. You can use the calculators there to test different retirement ages or different scenarios for future earnings amounts. |
| EXTRA HELP AVAILABLE WITH MEDICARE PRESCRIPTION DRUG COSTS |
| Medicare's open enrollment period for prescription drug coverage in 2007 runs through December 31. During this period, all eligible beneficiaries may choose to enroll for the first time, choose a new plan or stay in the plan they already have. If you or someone you know is on Medicare and has limited income and resources, it is important to remember that extra help is still available with cost of plan premiums, co-payments and deductibles. You may qualify for this extra help if your income is below $14,700 a year as a single person or below $19,800 a year if you're married and living with your spouse. Your income can be higher if you support other family members who live with you or have earnings from work. Keep in mind, new income limits will be determined in early 2007. For 2006, your total resources must be less than $10,000 if you are single or $20,000 if you are married and living with your spouse. Resources include such things as bank accounts, stocks, and bonds, but do not include your house and car. Resources can be slightly higher (an additional $1,500 per person) if you will use some of your money for burial expenses. In 2007, the resources limit will increase to $10,210 for an individual and $20,410 for a married couple living together. If you think that you might qualify for the extra help, you can complete an online application at www.socialsecurity.gov or call 1-800-772-1213 (TTY 1-800-325-0778) and a representative will assist you in filing an application over the phone. You can also visit your local Social Security office. For more information about the prescription drug program itself, you can go to www.medicare.gov, where decision-making tools such as the Medicare Prescription Drug Plan Finder are available, or call 1-800-MEDICARE (1-800-633-4227) (TTY 1-877-486-2048). |
| SOMETHING FOR THE CHILDREN |
| Children who have physical or mental disabilities may qualify for Supplemental Security Income, or SSI. SSI is a needs-based program that provides payments to people with disabilities who have not worked enough and paid enough Social Security tax to receive Social Security payments -- including children. When determining whether a child is eligible for SSI benefits, Social Security considers the income and resources of not only the child, but also the parents or other family members living in the household. You may want to visit Social Security's Kids and Families page at http://www.socialsecurity.gov/kids/index.htm. You also may call us at 1-800-772-1213 (TTY 1-800-325-0778) or visit your local Social Security office. |
 |
 |
 |
|