Social security
Social Security Earnings and the Federal Employee
Federal Employees and Social Security Earnings
Not so long ago, approximately two months before your birthday each year you would receive your Social Security Statement ‘Estimating Your Benefits’ and showing your ‘Earnings Record.’ Now in an effort to promote ‘green’, you can go online after establishing an online account and examine your records at any time. If you don’t have access to a computer, you may still call the Social Security Administration and request a paper copy.
Social Security is just one of the mechanisms by which Americans finance their retirement. Social Security statements provide an estimate of benefits based on reported earnings. The earnings report show earnings over your entire work career. It is important to examine your statement for errors.
If you find errors don’t hesitate to notify the Social Security Administration (SSA) by calling 1-800-772-1213 or by writing to the Social Security Administration-Office of Earnings Operations – P. O. Box 33026-Baltimore, MD 21235-3026. For the hearing impaired, you may call TTY-800-325-0778. Remember to keep your Social Security records with all of your important papers.
Be sure to let someone else other than yourself know where your important papers are because if something unforeseen happens and you are unable to articulate for yourself, it is wise counsel to have someone you trust prepared to handle the situation.
P.S. Always Remember to Share What You Know.
Social Security Facts
Social Security Facts
Below is a list of things you need to know about Social Security:
• Retirees receive COLAs (Cost-of-Living Adjustments) and have been since 1975 as a result of a law passed by Congress in 1972.
• FICA (Federal Insurance Contribution Act), the payroll tax which is a provision of the Social Security Act, as it appears in the Internal Revenue Code. This notification used to appear on our paycheck as one deduction. For clarity and ease of understanding, it now is separated into Social Security 6.20% and Medicare 1.45% deductions from earnings.
• The first 3 digits of our Social Security number indicates the geographic region where we lived at the time application was made for a Social Security card. The remaining numbers on the card are chosen randomly, although the middle 2 numbers indicate the number group that your number falls within. For example: Group 22-72. This example is for illustrative purposes only.
• Social Security numbers were assigned in the northeast and moved westward. So people on the East coast have the lowest numbers while those persons on the West coast have the highest numbers.
• Social Security numbers are never reused even after a person dies. The Social Security Administration states emphatically that their numbering system can provide enough new numbers for many generations to come.
• Social Security numbers were first issued in November, 1936.
• Social Security cards have been used as identification since 1972. Prior to that time, there was wording on the card that stated: Not for identification purposes.
• Services available to you from the Social Security Administration;
-Letter to confirm your benefit amount
-Change your address
-Get a password to check benefits or change your direct deposit information
-Apply for benefits
-Receive statements
-Request a replacement Medicare card.
All services offered by the Social Security Administration (SSA) are free. Beware of any agency or organization offering services the SSA provides free-of-charge.
P. S. Always Remember to Share What You Know.
Social Security Earnings Limit
Limit on Social Security Earnings
When you reach full retirement age, according to the year in which you were born, there are no limits as to how much money you can earn, and still receive all of your Social Security benefit. Your benefits will not be affected in the month you reach full retirement age or after. Your benefit can be reduced in the month prior to reaching your full retirement age if they exceed stated limits.
The full retirement age is 66 for all persons born from 1943-1954. The retirement age will increase over time to age 67 for individuals born in 1960 or later.
The earning limit for 2014 is $41,400. Therefore, until you reach your full retirement age depending on the year in which you were born, your benefit will be reduced by $1 for every $3 you earn over the limit. It is worth emphasizing that once you reach your full retirement age, you can get your full Social Security benefit with no limit placed on your earnings.
If you are not at full retirement age, the earnings limit is $15,480 for 2014. Your benefit will be reduced by $1 for every $2 you earn over the limit. It should also be noted that if you are under full retirement age and some of your benefits are withheld because your earnings have exceeded the $15,480 limit; your benefits will be increased when you reach full retirement age to compensate for the periods in which your benefits were reduced or when you received no benefit.
P. S. Always Remember to Share What You Know.
How Social Security Benefits Are Paid
Payment of Social Security Benefits
We are continuing our discussion of Social Security. Let’s move right into discussing how benefits are paid. This subject should be of particular interest to FERS workers given their retirement plan includes Social Security. There may also be CSRS employees who worked outside of the Federal service and qualify for Social Security benefits. Even if none of the categories necessarily apply to you, it is valuable to know the information so that you can pass it on to someone who might benefit.
Social Security benefits are paid on a monthly basis one month after they are due. If your benefit check is due in February, then it will be paid in March. The actual day you receive your benefit is determined by your birth date. If benefits are the result of your spouse’s work; the payment date is determined by the spouse’s birth date.
If you receive both Social Security benefits and *Supplemental Security Income (SSI) benefits, your Social Security payment will be issued on the 3rd of the month and the SSI payment will be issued on the 1st of the month.
If you are born between the 1st and the 10th day of the month, your benefit payment is made on the second Wednesday of each month. If your birthday falls between the 11th and the 20th day of the month, the payment is paid the third Wednesday of the month. If you are born between the 21st through the 31st, the payment is paid on the fourth Wednesday of the month.
Your Social Security check may be taxed if you file a federal tax return and your total income is more than $25,000 for an individual filing and more than $32,000 if filing jointly. Although many of us do not pay taxes on our Social Security payments, about 40 percent of us do.
*Supplemental Security Income (SSI) is a benefit paid to disabled adults and children who have limited income and resources.
P. S. Always Remember to Share What You Know.
Windfall Elimination Provision (WEP)
The Windfall Elimination Provision (WEP) only impacts individuals who earned a pension in any job and did not pay Social Security taxes, but worked long enough in other jobs to be eligible for Social Security Retirement or benefits due to disability. The Windfall Elimination Provision impacts Social Security benefits when any of an employee’s federal service after 1956 was covered under the old Civil Service Retirement Systems (CSRS). Social Security was not withheld from these employees’ checks because the Social Security System had not yet been formed.
The Windfall Elimination Provision (WEP) applies to federal workers if they reached age 62 after 1985 or became disabled after 1985. It also applies if you became eligible for the first time for a monthly pension based on work you performed where you did not pay Social Security taxes after 1985. The provision still applies even if you are still working.
Lower wage earners receive a higher return on their Social Security benefits than higher paid earners. While lower paid earners may receive as much as 55% of their income before retirement, high salary earners may only receive approximately 25% of their pre-retirement income. Social Security benefits were never designed to replace all of a worker’s pre-retirement earnings but only a percentage.
Prior to 1983 before Congress passed the Windfall Elimination Provision workers who had jobs not covered by Social Security, benefits were calculated as if they were low-wage workers. This allowed them to have the advantage of receiving a higher percentage of their pre-retirement earnings in addition to receiving a pension from employment where they paid no Social Security taxes.
To see the maximum amount your benefit could be reduced visit www.socialsecurity.gov/retire2/wep-chart.htm.
P. S. Always Remember to Share What You Know.
You may also want to read Government Pension Offset (GPO)
Government Pension Offset (GPO) Reduction
In a recent post we mentioned Government Pension Offset (GPO) and gave a definition with the promise of giving more details in a later post. This time is as good as any to continue the dialogue. There is a wealth of information available to you on the website at the Social Security Administration. It is our intent to provide that information in an abbreviated and comprehensive version and make it part of our discussion on retiring well.
Under the Government Pension Offset, your Social Security benefits will be reduced by approximately two-thirds of your government annuity check. For example, if your monthly annuity check is $1400, then about $933 would be deducted from your Social Security payment. So if you were entitled to a $1200 spouse’s, widow or widower’s benefit from Social Security, you would receive $267 per month from Social Security ($1200 – $933 = $267).
You might ask, why can’t I collect both the $1400 from my annuity and the $1200 as spouse, widow or widower’s benefit?
The answer in brevity is because the amount you receive as a spouse, widow or widowers is considered dependent benefits. In our country’s history, many spouses in past times did not work but stayed home to take care of their families. The system was trying to make provisions to compensate those spouses who were financially dependent on the working spouse. As times changed, both spouses began to work and each earned their own Social Security retirement benefit.
The law requires that benefits as a spouse, widow or widower be offset dollar for dollar by the amount earned by his or her own retirement benefits.
P. S. Always Remember to Share What You Know.
You may also want to know about Windfall Elimination Provisions (WEP)
Social Security Calculator
Understanding the federal retirement systems can sometimes be complex to say the least. Yet, it is information we really need to breathe in and understand. Knowledge is power and we all want the power to live in retirement on our own terms. Did you know that there is a formula for calculating your Social Security benefit? It really is quite simple.
• The first step to computing a Social Security benefit is to determine your Primary Insurance Amount or the PIA. The PIA is the amount you would receive if you worked until age 65 if you were born before 1938.
• If you were born after that time you would need to determine your Average Indexed Monthly Earnings or the AIME. You do that by: listing all your Social Security covered earnings from 1951 to the present based on periods applicable to you. Then you adjust those earnings to account for inflation, not to exceed the maximum taxable amount in any year. We are almost finished, just a couple more steps.
• Select the 35 highest years of your indexed earnings, dropping in a zero for each year in which there were no covered earnings and then dividing the number of months (420) months in 35 years included into the total of the indexed earnings.
Should we stop here or keep going? I know by now, you are saying she has sincerely lost it and does she honestly expect us to do that. We have to add some humor somewhere in understanding the complexities of federal retirement, least we bore from all the details. No you don’t have to do all of that. We live in an age where it is much easier for us to determine calculations that will help us in the retirement planning process.
You can always go to your Social Security account on line and look at your work history and Social Security contributions. You can also use the Retirement Age Calculator at http://www.ssa.gov/planners/morecalculators.htm to estimate the approximate Social Security benefits you will receive if you retired at what is considered normal retirement age and had consistent lifetime earnings.
P. S. Always Remember to Share What You Know.
For more information on your Social Security Benefits – Click HERE
Social Security: Calculating Benefits
Calculating Your Social Security Benefits
Your Social Security benefit is based on your earnings over your entire work career. Your benefit amount is also based on the age you begin receiving retirement benefits. The earlier you start receiving benefits, the lower your payment will be.
You are first eligible for Social Security at age 62, but full retirement is reached at age 65 for individuals born after 1938. If you delay receiving your benefit beyond age 65, your benefit amount will increase by approximately 8% per year for each year you delay up to age 70. The increase also varies according to the year of your birth.
Now let’s examine the last set of statements. It used to be the general concensus of Human Capital Leaders and others that you should delay receiving your benefits. Many of us have taken a different position with that advice. In addition to determining what is the best fit for you and your circumstances, you might also want to evaluate based on your life expectancy (estimated by insurance actuary charts) how long it will take you to recoup what you receive in payments starting at 62 if you delay those payments until age 66.
For example, if you receive $15,000 in benefits between age 62 to age 66, will you receive an equal amount or greater at age 66 until your estimated time of death. It is becoming increasingly more important in today’s economy that we educate ourselves to use our analytical and evaluative skills to find the right fit for our circumstances and needs.
You have more information about your circumstances than anyone else so be careful, be cautious, be informed and make the best decision for your life to retire well.
P. S. Always Remember to Share What You Know.
Social Security – Earning Credits
When you work and pay into Social Security, you earn credits or what was previously called quarters. The average worker earns about 4 credits per year in order to acquire the 40 credits required to be eligible for Social Security benefits at retirement.
The number of credits you need to qualify for benefits actually depends on the year you were born. For example, if you were born in 1929 or later, you need 40 credits to qualify for eligibility. If you were born before 1929, you would need fewer credits. The minimum number of credits needed by an employee to qualify for benefits would be 24. You would have had to be born around 1913 or earlier to qualify for the 24 credits. So that eliminates pretty much the entire federal and postal workforce.
It is always a good idea to check your Social Security statement just to make sure your information is correct and that you have the 40 credits needed to qualify for Social Security benefits. It actually only takes about 10 years in a Social Security covered employment to gain the 40 credits you need, 4 credits per year. You can check your statement online. It is simple, just set up your account with the Social Security Administration (SSA) and you can stay on top of your benefits and what your estimated payment may be at various ages. You may also be surprised to learn about all of the different Social Security “claiming strategies” that exist – if you or your (current or former) spouse are eligible for Social Security speak to a financial professional who is an expert in your benefits and also how to maximize Social Security benefits.
It is estimated that the full retirement age will increase gradually until it reaches age 67. Employees born after 1960, who start receiving their benefits at age 62, will experience a reduction of approximately 30% in their Social Security benefit. A rule of thumb is that early retirement will give you about the same total Social Security benefits over your lifetime, but in smaller amounts to take into account the longer period you will receive them.
Do your homework before you make any decisions that impact how you will live in retirement.
P. S. Always Remember to Share What You Know.
Social Security – Background
~~SOCIAL SECURITY-BACKGROUND
As we continue building our laundry list of things we need to know and do in order to prepare to retire well, Social Security is a major item on our list. The Social Security Act was signed on August 14, 1935 some 15 years after the Civil Service came into being on August 1, 1920. When the Social Security Act first came into being, it was only a retirement program for the primary worker. It was not until many years later around 1939, that benefits for survivors and the retiree’s spouse and children were added. Disability benefits were not a part of the program until 1956.
Today we look at the Social Security Act from a much smaller view than it was originally structured. The Act was extensive in its original format and contained provisions for national unemployment compensation, Aid for Dependent Children and assistance to states to support a number of health and welfare programs.
Today we think of Social Security as a core part of the retirement structure for employees of the Federal Employees Retirement System (FERS) as well as those employees under the CSRS Offset program. Individuals under these systems have social security deducted from payroll, while employees under the old Civil Service Retirement System (CSRS) do not.
CSRS employees may, however, be eligible for social security benefits because they worked in non-federal jobs where they paid into social security or via spousal or survivor benefits because of a spouse’s covered employment. The history of the Social Security Act and its expansion to cover the categories of spouses and survivors has been of great benefit to many families.
Two legal requirements may impact Social Security benefits for CSRS employees: the *Government Pension Offset and the * Windfall Elimination Provision. The Government Pension Offset does not affect CSRS Offset employees but the Windfall Elimination Provision might, depending on the beneficiary’s earned outside income while drawing Social Security benefits.
*DEFINITIONS: Government Pension Offset – This law affects spouses, widows and widowers who may qualify to receive a pension from a federal, state or local government where Social Security taxes were not paid from your work and may cause your Social Security spouse’s widow or widower’s benefits to be reduced.
Windfall Elimination Provision – Your Social Security benefits may be reduced if you receive a pension based on work you performed in a government agency or employment in another country where your employer did not withhold Social Security taxes from your salary.
We will discuss both Government Pension Offset and Windfall Elimination Provision in greater detail in a subsequent post.
P. S. Always Remember to Share What You Know.
Click HERE for information on Windfall Elimination Provision
Click HERE for information on Government Pension Offset
Click HERE for information on Social Security
Click HERE for information on CSRS
Click HERE for information on FERS
Tips For Staying Healthy
~~Tips for Your Health
Often time retirees find that a great portion of their social life has been left in the office. You spend the majority of your waking hours at work and as a result you spend most of your time with your work family. But when you retire, that work family does not necessarily retire with you. When you call them they may not have time to talk. Their schedules may now be very different from your own. Just finding time to do things together might become a challenge. It does not mean they don’t want to spend time with you; it is just that your schedules are now very different.
It might be time you established a new group of friends and acquaintances. You worked most of your adult life so you have probably had to organize a few committees, focus groups, teams and the like. Use the team-building skills you acquired from work to do something innovative and fun in your community:
• Start a walking club in your community. Name the group, print up some tee shirts and design activities that will bring about some health competition.
• Start a book club. Select interesting books and enjoy discussing the book over some home-made health eats.
• Buzz around to see if there are any thespians (would-be actors) and talented writers lurking around in your neighborhood. Start a community play house so that your community can enjoy the arts right in their own back yard.
• What about a biking and hiking club. Getting in touch with nature is both stimulating and refreshing.
• Travel clubs are nice. You don’t have to travel alone and depend on the social generosity of strangers. There are lots of group discounts just waiting to be had.
• Go dancing. Listen to some great music (the language of the Gods) it even soothes the savage beast.
• I live in the Washington Metro area and the Kennedy Center offers free, magnificent performances throughout the year. Wherever you live, I am sure you can find something equally as entertaining.
• Have you considered going to school. They say children keep you young. Volunteer at one of the local schools in your community. You are filled with knowledge, share it with a kid. They say the “darndest” things and they keep you laughing and feeling young, most of the time.
• You are looking good. Keep yourself looking good because it makes you feel good. We are so used to getting ourselves shined up for work, but when we stop working often we forget about continuing to care about what we look like. Ladies you no longer have to wait for weekends to get your hair done. You are free to go during the week at your leisure and even meet up with some of your new friends afterwards for a nice walk indoors or outdoors.
• What about a community cook-in healthy living café? Loneliness has a tremendously negative impact on our health. Once you have formed the healthy living café, the group can alternate preparing aesthetically pleasing, calorie sensitive, and budget conscious, great tasting meals. This eliminates the loneliness, controls weight, reduces high cholesterol, hypertension and brings together a circle of supportive friends with a common goal.
Retirement can be fun and exciting. It can be a time of discovery and new beginnings. Your health is what is most important.
P. S. Always Remember to Share What You Know.
Click HERE for information on Retirement Planning
Federal / Postal Retirement Planning Report Card
Retirement Planning Report Card
From your Thrift Savings Plan to FEHB to FEGLI, each of us will be ‘graded’ on our Planning Report Card. Much like when we were kids in school how well prepare ourselves on these topics, will have an impact on how well we do. If you got good grades in school, your parents often rewarded you with something special, sometimes even money to show the value and significance of getting good grades. Your Retirement Planning Report Card, however, is far more important than if you got an ‘A’ in your Social Studies class. This Report Card will truly impact the rest of your life.
You have reached another milestone in our lives where once again a report card is important. The difference is if you get a good report card by planning ahead for retirement (such as using your Thrift Savings Plan fully), your reward is to live in comfort and security. Proper planning allows you to retire on your own terms and take the worry out of how you are going to survive now that your income is much lower than it was as an active employee.
Your planning report card should include estimates of your pension income which will resemble reality the closer you get to retirement. Your Retirement Planning Report Card should also include information on your TSP.gov account any Social Security Benefits you might be eligible for and even your life expectancy. If you are postal employee you will need to access your LiteBlue account and gather any forms that you would like to maintain in retirement. Look to include your total estimated monthly retirement income and your estimated monthly expenses. Do not forget to include any additional savings and IRA’s that you have along with your spouse’s savings too. Other items you think are relevant will help you paint the best picture possible of your retirement future. It is always a good idea to consider talking with a financial professional who focuses on Federal and Postal retirees (Liteblue information can be found HERE). They are tough to come by and the average ‘Advisor’ probably doesn’t know much about your benefit package, but if you can find a FERS, CSRS and FEGLI expert – you should do yourself the favor and sitting down with them to discuss your needs.
There is quite a bit of work to do to get ready for retirement, but the sooner you get started the closer you are to reaching your retirement goals.
P. S. Always Remember to Share What You Know.
Income Sources for Federal and Postal Retirees
Sources of Income for Federal and Postal Retirees
The majority of retirees will get income from a number of sources. However, the only sources they can really depend on are –certified – sources of income. What are certified sources of income? Income that you know will be there – Social Security, Employee Pension Plans and other Personal Savings and Investments, such as your TSP.gov account.
Some of us may receive income from an inheritance, equity in our home, life insurance, and Individual Retirement Accounts (IRAs). Principally income generally comes from the three primary sources named above and quite often the third one might be missing for many retirees – Savings and Investments. Even if you are currently missing the Savings portion, it is never too late if you put a savings strategy in place and stick to it.
When you are planning for your retirement, your plans should not be based on what ifs, like winning the lottery. We would all like to win the lottery, but the odds are pretty slim. Therefore, your plans for retirement must be based on certified sources of funds. As federal and postal employees, whether you are eligible for CSRS for FERS you know that your Pension and Social Security where applicable will be there. Everything else is an add-on to enhance your comfort and security in retirement.
Whatever your financial profile, the greatest way to protect it is by always making sure that your expenses are below your income. Careful planning can help you reach this position with what you have when you make adjustments to fit your circumstances.
P. S. Always Remember to Share What You Know.
Related Articles
Click HERE for information on Postal LiteBlue
Click HERE for information on your Thrift Savings Plan
Plan Building: How Do I Get Started?
~~HOW DO I GET STARTED WITH A PLAN?
By now you are probably asking – How do I get started setting goals that are SMART and putting a plan into action? You get started by first simply writing down what you desire your retirement picture to reflect. Write down your goals, evaluate and analyze them so they fit your circumstances and values.
Create a strategy that is doable with short, intermediate and long-term goals with time horizons that are based in reality. Make certain that the plan you create can be put into action without causing undue stress on your emotional and financial well-being. Lastly, make room to monitor and track the movement of your plan, leaving time and space to modify the plan as circumstances and conditions change in your life both for you and your family.
A plan that starts out SMART ends with giving you in retirement the lifestyle you desire and deserve.
P. S. Always Remember to Share What You Know.
Retirement Planning – Now or Later?
Retirement Planning
The most important step a Federal or Postal employee can take toward a successful retirement is recognizing how and when to begin the retirement planning process. As a FERS or CSRS eligible employee the earlier you begin educating yourself and gathering as much information as possible about how your benefits will work in retirement the better off you will be. Due to the complexity of the FERS and CSRS programs Federal and Postal employees may wish to speak with a financial expert who has a clear understanding of the FERS, CSRS, FEGLI and your TSP.gov account.
When is the ‘Right Time’ to start planning for retirement?
As the adage goes – The best time to plant a shade tree was 40 years ago. The second best time is right now.
Although our early years are not typically spent planning for retirement, they should be. Retirement planning is a very important component of the work-life cycle. The earlier we start building your nest egg (such as making contributions to your TSP.gov account), the longer it will be able to grow for you. Not only will your work and your savings begin to add up, but the compound growth that can take place over time means that your money is working for you. Reviewing your TSP.gov account regularly and making sure that your the investments and the ‘allocation’ you have matches your desired retirement plan is a must.
The first day of your first full-time adult job is when you should start your retirement planning. Don’t just take that myriad of papers handed to you by Human Resources and stuff them in your desk drawer. Read them, ask questions and learn what you can do right away. And absolutely, make contributions to your TSP.gov account.
Although it is never too late to start preparing to retire well, the earlier we start the greater our options and opportunities to design the kind of life we want to live in retirement. Your TSP.gov account and other investments are important when you are younger but they grow even more important as you get closer to retirement. This is when a financial professional can help you ensure that your retirement goals and income needs will be met.
P. S. Always Remember to Share What You Know.
Will your income will be enough in retirement?
Are your TSP funds getting you to where you need to be?
Medicare Enrollment
If you are eligible for Social Security Benefit payments at age 65 you will automatically receive a Medicare card in the mail. You don’t have to apply. Medicare enrollment has never been easier.
What does being eligible for Social Security benefits mean? It means that you must have acquired 40 credits through either you or your spouse’s work under a Medicare covered employment. With this requirement in mind, it is not difficult to qualify for Medicare enrollment.
The Social Security Administration (SSA) and the Centers for Medicare and Medicaid Services (CMS) work in collaboration to determine eligibility along with information communicated via the Office of Personnel Management (OPM). Age 62 represents the first point of eligibility to qualify for Social Security benefits if you have payed into Social Security and accumulated 40 credits.
Paychecks in past years only showed FICA deductions. In more recent years, clarity has been achieved by representing Medicare and Social Security separately; 1.45% deduction for Medicare and 6.20% for Social Security, making it much easier for employees to understand.
However, if you are not eligible for Social Security, you will not automatically receive a Medicare card in the mail, you will have to apply for Medicare. This is important to those Federal employees and retirees who are not eligible for Social Security for one reason or the other but still wish to pursue Medicare enrollment. Three months prior to your 65th birthday, you should file your application for benefits during the 7 month initial enrollment period.
If you are unclear about the deductions on your paycheck or the specifics of Medicare enrollment, go to your Human Resources Office immediately for clarity. Checking on what deductions are being withheld from your check is imperative. It should be a part of your annual financial checkup. Having a thorough understanding of payroll deductions is a clear path to retiring well.
P. S. Always Remember to Share What You Know.
Medicare Part B
Medicare Part B
Do You Know Enough About Medicare?
Original Medicare, recognized as a fee-for-service plan, has two primary components: Medicare Part A (Hospital Insurance) mentioned in the previous post on automatic qualifications and Medicare Part B (Medical Insurance).
Medicare Part A is generally premium-free. However, Medicare Part B requires the payment of a monthly premium. The premiums are withheld from your monthly Social Security or your Annuity. In addition to Original Medicare, there is also Medicare Advantage carried by private insurance companies. These companies must still comply with the guidelines, policies and procedures under Original Medicare. For simplicity we will refer to Original Medicare as Old Medicare and Medicare Advantage as New Medicare, although it has been around since 1999.
In order to qualify for Medicare Advantage (Part C) you must be eligible for Medicare Part A and Medicare Part B. The Medicare Advantage Plans, which are not available in all states, cover A, B, C and sometimes D (Prescription Drugs). Medicare Prescription Drug Plans may not be included in all Medicare Advantage plans. Medicare Advantage Plans, however, provide a number of alternatives in coverage such as Medicare Health Maintenance Organizations (HMOs) or Preferred Provider Organizations (PPOs).
Medicare recipients have a number of plans to choose from for hospital and medical benefits. Whatever plan you choose, you still maintain all of the benefits, appeals rights and protection afforded under Medicare.
P. S. Always Remember To Share What You Know.
Medicare is an important part of your retirement planning
Qualifying for Medicare
Qualifying for Medicare requires more than just reaching Age 65
Age 65 does not automatically qualify you to receive Medicare. Age 65 is one of the eligibility criteria, but does not automatically qualify you to receive the benefit. Qualifying for Medicare is not as simple as many people believe. You must not only meet the age requirement, but either you or your spouse must have worked at least 10 years in a Medicare-covered employment in order to receive what is commonly referred to as free-Medicare-Part A (Hospital Insurance).
Working for 10 years under a Medicare covered employment provides you with the 40 credits, previously called quarters, needed to qualify. On average, an employee earns 4 credits per year of employment, accumulating 40 credits in 10 years.
As of January 1, 1983, if you were a federal employee, you automatically qualify for Medicare. Even if you do not qualify for Part A (premium free), the Social Security Administration might be able to direct you as to how you can obtain Part A of Medicare. Make sure to explore every option to ensure you will be qualifying for Medicare.
P. S. Always Remember To Share What You Know.
For information on FEHB and Medicare please see the attached
Simple Formula For Estimating Retirement Income
~~A Simple Formula for Estimating What Your Retirement Income Might Look Like
Estimate of Social Security eligibility and payments plus Estimate of your pension or annuity plus any income that you Thrift Savings Plan is able to produce equals the Estimate of Your Retirement Income
Until you actually get ready to retire and submit you retirement application this formula is a moving target because your earnings are changing, thus impacting the outcome of what your retirement income will look like. However, checking the health of your financial picture, such as looking at how your TSP account is performing and making any necessary changes is a good exercise to keep you on track to retiring well. About 5 years before you are going to retire (and certainly within 1 year and consistently thereafter) you should be working with a financial expert who is knowledgeable in Federal Benefits and TSP Fund choices and alternatives and looking for financial guidance.
This exercise will also alert you to whether you need to consider other options for your retirement future such as increasing savings or contributions to your TSP and evaluating Annuity expenses and spending habits. It can also be very useful in determining what your income and expenses represent at various stages in your work career and life. It is easier by the inch than the mile. Getting a snap shot view of your financial health early is tantamount to a successful retirement future.
P. S. Always Remember to Share What You Know
Information on your Annuity Calculations can be found here
Check out your Social Security Benefits
How can you access your TSP account
Postal employees can access their Thrift Savings Plan through LiteBlue
Where Will Your Retirement Income Come From?
~~Where Will Your Retirement Income come from?
The majority of Americans will receive income from Social Security, an Employee Pension, and Savings and Investments. Will you have all of the sources listed? If you are a federal employee chances are you will. As a federal employee you have the advantage of an Employee Pension (Annuity), FERS employees lso have Social Security under their retirement system. CSRS employees may have Social Security if they have worked outside of the federal service. Each group has the opportunity to have savings and investments through the Thrift Savings Plan.
Although retirement income may come from many other sources such as an inheritance, life insurance, or equity in your home, the majority of Americans will receive income from Social Security, a Pension or personal savings and investments.
Where will your retirment income come from when you retire is a question to ponder and give deep consideration when evaluating your financial health and readiness for retirement. If you are nearing retirement you should absolutely speak with a financial professional who is an expert in your unique benefits before you make any decisions.
P. S. Always Remember to Share What You Know.
More information on your TSP.gov account
Postal employees can access their LiteBlue information from here
