U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-10-2015, 04:03 PM
 
Location: Wisconsin
671 posts, read 1,229,663 times
Reputation: 706

Advertisements

I read on their website that you earn 1 quarter for every $1,220 of wages, BUT how does it work if you have a year where you earned less than $1,220?

I had 1 year in my teens that I earned $636. Would that year be considered zero or would I earn .5 credit?

Thanks.
Reply With Quote Quick reply to this message

 
Old 05-10-2015, 04:40 PM
 
4,787 posts, read 9,308,292 times
Reputation: 12632
Your retirement benefit is going to be based on your top 35 years of earnings. Hopefully, by the time you reach an age where you can actually draw a retirement benefit , those low earnings teenage years will have dropped off your benefit calculations.
Reply With Quote Quick reply to this message
 
Old 05-10-2015, 04:57 PM
 
Location: Grove City, Ohio
10,135 posts, read 12,392,750 times
Reputation: 13985
Quote:
Originally Posted by willow wind View Post
Your retirement benefit is going to be based on your top 35 years of earnings. Hopefully, by the time you reach an age where you can actually draw a retirement benefit , those low earnings teenage years will have dropped off your benefit calculations.
That is what happened to mine. I never made much money until 1980 and prior to then, especially prior to 1976, my income was well below the median and I mean poverty level.

But for the past 5 years especially every year my estimated benefit jumps substantially.
Reply With Quote Quick reply to this message
 
Old 05-10-2015, 05:16 PM
 
Location: Cape Elizabeth
425 posts, read 387,774 times
Reputation: 745
The $1220.00 is this year's amount. See this link for how much a quarter was in previous years:
Quarter of Coverage

$636.00 would get you at least one quarter of coverage for any year prior to 1996.
Reply With Quote Quick reply to this message
 
Old 05-10-2015, 09:44 PM
 
Location: Wisconsin
671 posts, read 1,229,663 times
Reputation: 706
Thanks all. SSA.GOV is telling me I have 34 credits, so I need to work at least 1.5 more years, correct?

I had many years that I didn't pay into SS because I was a cop with our own Pension Fund.

ILOVEMYCAT, due to my Police Pension, it appears that my future SS benefit will be reduced quite a bit due to the Windfall Elimination Provision?

Last edited by Jim Mac; 05-10-2015 at 09:55 PM..
Reply With Quote Quick reply to this message
 
Old 05-10-2015, 11:02 PM
 
Location: Cape Elizabeth
425 posts, read 387,774 times
Reputation: 745
Quote:
Originally Posted by Jim Mac View Post
Thanks all. SSA.GOV is telling me I have 34 credits, so I need to work at least 1.5 more years, correct?

I had many years that I didn't pay into SS because I was a cop with our own Pension Fund.

ILOVEMYCAT, due to my Police Pension, it appears that my future SS benefit will be reduced quite a bit due to the Windfall Elimination Provision?
Yes,, once you have your 40 quarters, you are due "something". But, if you only work until you are due "something", it will be very low. It will have 25 zeroes bringing down your average earnings, since SSA uses 35 years, and 40 quarters is only 10 years. But, because you have a police pension, your main goal is just to get your 40 quarters. Then, the average of your "something" will be reduced 40% due to the windfall eliminati
on provision.
Reply With Quote Quick reply to this message
 
Old 05-11-2015, 01:36 AM
 
Location: Wisconsin
671 posts, read 1,229,663 times
Reputation: 706
Thanks. I didn't know they use an average of 35 year's earnings. You said SSA uses 35 years. Can you be more specific? Is it 35 years in a row, beginning with the first year you paid into SS? I only paid into SS from 1973 thru 1981.

Do any of the things you said affect my ability to qualify for the maximum Medicare benefit when I turn 65? Assuming I have earned 40 quarters?
Reply With Quote Quick reply to this message
 
Old 05-11-2015, 05:16 AM
 
Location: Cape Elizabeth
425 posts, read 387,774 times
Reputation: 745
Quote:
Originally Posted by Jim Mac View Post
Thanks. I didn't know they use an average of 35 year's earnings. You said SSA uses 35 years. Can you be more specific? Is it 35 years in a row, beginning with the first year you paid into SS? I only paid into SS from 1973 thru 1981.

Do any of the things you said affect my ability to qualify for the maximum Medicare benefit when I turn 65? Assuming I have earned 40 quarters?
No, you are due Medicare and a monthly benefit check, as long as you attain your 40 quarters. The amount of the check is based on an average of 35 years of earnings. They pick and choose the 35 years from a person's entire work history. They do not have to be in a row.

But, if I were you, I would not worry about the 35 year computation provision. Your goal is to get your 40 quarters. If you work this year and earn 4 times the quarterly amount or $1220 x 4 = $4880, you will have 38. Then in 2016, or any time thereafter, if you work 2 x the amount (still not announced, but around $1240) you will have your 40.

Any earnings you have after that will "be gravy". If you like the job, keep working, and they will keep raising your check, even though it has the WEP and the 25 zero years. Each year you work, a zero is removed and you get a bump.

If you don't, quit, and get the little, including Medicare and the small monthly check.

FYI, I don't have my 40 quarters, nor does my husband. I had 11 when I began to work for the Feds and no longer paid in. I think I now have 19. He has 37, and always thought he would get a small p/t job for the last 3 QC's, but it has been 5 years since he retired and so far, we have no inclination to go to work. In Maine, most employers need you in the summer, when it is beautiful here, and we have guests etc. and in the winter, one of the blessings of being retired is not having to leave the house when it is snowing etc.

Good luck!
Reply With Quote Quick reply to this message
 
Old 05-11-2015, 11:44 AM
 
Location: Wisconsin
671 posts, read 1,229,663 times
Reputation: 706
Thanks again. So all Medicare cares about is that I have a total of 40 quarters over my entire career, correct? The 35 year thing doesn't apply, correct? And the 40 quarters will give me the lowest Medicare cost?
Reply With Quote Quick reply to this message
 
Old 05-11-2015, 12:35 PM
 
Location: Cape Elizabeth
425 posts, read 387,774 times
Reputation: 745
Quote:
Originally Posted by Jim Mac View Post
Thanks again. So all Medicare cares about is that I have a total of 40 quarters over my entire career, correct? The 35 year thing doesn't apply, correct? And the 40 quarters will give me the lowest Medicare cost?
Yes, you are correct on all accounts.

Also, if you have a spouse and he/she (cause now SSA is paying married same sex couples in states where the marriage is recognized) has their 40 quarters, you don't even have to worry about getting your own. You can get Medicare from them. If you are divorced but married 10 years prior to the divorce, again you can draw Medicare based on them. If you are widowed, and your wife died "fully insured", again, you can claim off her account. But, if none of that applies, you need your 40 quarters.

By the way, even though my husband and I don't have our 40 quarters, we are eligible for Medicare. The federal government began making workers pay into the Medicare system (we paid the portion of the FICA tax that was just for Medicare) beginning in 1983. So, after 10 years, we had enough MQGE (Medicare qualified government earnings) to get Medicare like everyone else.

Medicare Part A is free for anyone with their 40 quarters (or the spouse's). Part B has a monthly premium, now at $104.90 but higher for high income individuals (way higher) and if you need the Part D for prescriptions, it has a premium as well.

Hopefully, your check will help pay for some or all of the premium.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top