To qualify for benefits, you earn “credits” through
your work—up to four each year. This year, for example, you earn one credit for each $970 of wages or self-employment income. When you’ve earned $3,880, you’ve
earned your four credits for the year. Most people need 40 credits,
earned over their working lifetime, to receive retirement benefits.
For disability and survivors benefits, young people need fewer credits
to be eligible.
We checked your records
to see whether you have earned enough credits to qualify for benefits.
If you haven’t earned enough yet to qualify for any type of benefit, we can’t give you a benefit estimate now. If you continue to work, we’ll
give you an estimate when you do qualify.
What we assumed—If
you have enough work credits, we estimated your benefit amounts using
your average earnings over your working lifetime. For 2006 and later
(up to retirement age), we assumed you’ll continue to work
and make about the same as you did in 2004 or 2005. We also included
credits we assumed you earned last year and this year.
Generally, estimates
for older workers are more accurate than those for younger workers
because they’re
based on a longer earnings history with fewer uncertainties such
as earnings fluctuations and future law changes.These estimates
are in today’s dollars. After you start receiving benefits,
they will be adjusted for cost-of-living increases.
We can’t
provide your actual benefit amount until you apply for benefits. And that amount may differ from the estimates stated below because:
(1) Your earnings may increase
or decrease in the future.
(2) Your estimated benefits are
based on current law.
The
law governing benefit amounts may change. |
(3) Your benefit amount
may be affected by military service, railroad employment or pensions
earned through work on which you did not pay Social Security tax
following are two specific instances. You can also
visit www.socialsecurity.gov/mystatement to
see whether your Social Security benefit amount will be affected.
Windfall Elimination
Provision (WEP) — In the future, if you receive a pension from employment in which you do not pay Social Security taxes, such as some federal, state or local government work, some nonprofit organizations or foreign employment, and you also qualify for your own Social Security retirement or disability benefit, your Social Security benefit may be reduced, but not eliminated, by WEP. The amount of the reduction, if any, depends on your earnings and number of years in jobs in which you paid Social Security taxes, and the year you are age 62 or become disabled. For more information, please see Windfall Elimination Provision (Publication No. 05-10045) at www.socialsecurity.gov/WEP.
Government Pension Offset (GPO) — If
you receive a pension based on federal, state or local government
work in which you did not pay Social Security taxes and you
qualify, now or in the future, for Social Security benefits
as a current or former spouse, widow or widower, you are likely
to be affected by GPO. If GPO applies, your Social Security
benefit will be reduced by an amount equal to two-thirds of
your government pension, and could be reduced to zero. Even
if your benefit is reduced to zero, you will be eligible for
Medicare at age 65 on your spouse’s record. To learn
more, please see Government Pension Offset (Publication No. 05-10007) at www.socialsecurity.gov/GPO. |