social security benefits info?

[Alison in KY]

Every year the gov. sends out that little piece of paper that shows how long you've worked, elegible benefits, etc. I haven't seen my sheet since last year, but it always worries me because I didn't work long enough to earn benefits. I also think it says something like if you haven't worked in so many years then it can take away from your benefits. Can someone please explain why or why not I should worry about this? So how does this hurt us stay at home mom's who choose not to work?

Alison

[MBM]

Every year the gov. sends out that little piece of paper that shows how long you've worked, elegible benefits, etc. I haven't seen my sheet since last year, but it always worries me because I didn't work long enough to earn benefits.

You need to have worked 10 years cumulatively (not consecutively) before you can receive your benefit upon retirement.

I also think it says something like if you haven't worked in so many years then it can take away from your benefits.

No, you will not lose any of your benefits if you haven't worked for a period of time, but you do need to have worked for at least 10 years cumulatively.

HTH. :)

[Heigh Ho]

http://www.ssa.gov/retire2/credits3.htm

As I understand it, if a person didn't work under Social Security after the children were born, she isn't eligible for disability after ten years of not working.


A person needs 40 credits to be eligible for retirement based on his own work.
http://www.ssa.gov/retire2/credits2.htm

[MBM]

Yes, that may be. My source of information just walked out the door and is on his way to work. (Dh works on social security legislation.) If you have any more questions, I can ask him to explain it in layman's terms. He loves talking about it. LOL.

[Heigh Ho]

I would love to know what the trade off is in regards to retirement benefits...say a stay at home mom that worked as a professional pre-children works enough hours at minimum wage each quarter to remain eligible for disability..what impact does that have on the expected retirement benefits?

[Alison in KY]

http://www.ssa.gov/retire2/credits3.htm

As I understand it, if a person didn't work under Social Security after the children were born, she isn't eligible for disability after ten years of not working.


A person needs 40 credits to be eligible for retirement based on his own work.
http://www.ssa.gov/retire2/credits2.htm

So if I'm understanding this correctly, I need to have my 40 credits by the time I'm 62? I think I'm a credit or two short of that.

I don't see how any stay at home mom has been able to get their 40 credits in. Do I have this understood correctly? So if something happens to me and I have a disability, as long as I'm younger than 62, then I will get Gov. disability? And if I'm retirement age, I will not receive benefits unless I've worked and have my 40 credits?

[Alison in KY]

DUH, no wonder I couldn't find my thread by a search. Sorry it's not on the general board. I'll repost over there, but keep an eye on it here also.

Alison

[Heigh Ho]

If you want retirement benefits based on your own earnings under SS, you need to accumulate 40 credits. You may become eligible for a spousal benefit if you have a spouse that works under SS.

A SAHM can get their 40 credits in if they started working under SS as a teen and were older rather than younger when they became a SAHM. I didn't plan for it, but it worked out for me that I had all my 40 credits in before the children came and I decided to stay at home.

If you need to qualify for disability, the rules spell out how many credits in what time frame is needed. I had no idea that the eligibility rules for retirement and disability were so different until an insurance agent tried to sell me disability insurance. It has altered our plans..I'll definitely return to work and work enough that I'm eligible for disability before dh stops working.

[MBM]

I would love to know what the trade off is in regards to retirement benefits...say a stay at home mom that worked as a professional pre-children works enough hours at minimum wage each quarter to remain eligible for disability..what impact does that have on the expected retirement benefits?

I'll ask my husband but probably won't be able to respond until tomorrow morning. He loves talking about this subject! I think you just made his day. :D

[Heigh Ho]

Thank you very much. I find the whole history of SS fascinating, especially with so many teacher neighbors who have a whole different & more lucrative plan!

[MBM]

Thank you very much. I find the whole history of SS fascinating, especially with so many teacher neighbors who have a whole different & more lucrative plan!
No problem!

Last night when I asked my husband about this while he was in the shower, he kept poking his head out and yelling things for me to mention. Right before bed he mentioned something else. Then this morning he was telling me even more things. It's all very exciting to him. I have to be sitting at the computer to get it straight, though.

[MBM]

Heigh ho, I'll have to get back to you Friday morning when my husband is home. Last night and the next few nights are going to be crazy for us.

[Heigh Ho]

Thank you kindly! No hurry...

[StephanieZ]

Don't forget that for retirement purposes, you are entitled to 50% of whatever your spouse gets (not half of HIS, but 50% additional, so he gets 100% PLUS you get 50%) if you are married 10 years. You still get this even if you divorce before or after retirement.

So, if your dh has high earnings, half of his might be more than all of yours. I expect this to be the case in our family, so I don't worry about the retirement aspect much.

http://www.ssa.gov/pubs/10035.html

The disability/survivor rules are different from the retirement rules, and they require more recent earnings. I don't remember the exact rules, but I realized a couple years ago that putting me on the payroll for a bit each year (I was working unpaid for our family business) earns me a LOT of disability and survivor benefit coverage -- probably would cost me a bundle to buy privately. (Disability insurance is insanely expensive.) (I did have a couple/few years of earnings earlier in life.) So, I put myself on payroll to get that bit of additional security for the family in case something happens to me.

http://www.ssa.gov/pubs/10029.html

[MBM]

Heigh Ho, my MIL went to the emergency room a few days ago with a bad case of the flu -- she was literally on death's door, poor thing! I won't be able to get dh's input on SS until she's back to her old feisty self. (Dh and I are taking turns caring for her.) I just don't want to leave you hanging on this enthralling topic! :)