January 30, 2009

Insurance Benefits after your Retirement

Insurance Benefits in old age as a form of social insurance paid by the US Social Security Administration of the US citizen 62years or older age. The Benefit payments are made on the 3rd of the month. A person attains fully insured status based upon their payments into the Social Security system through payroll taxes and the amount of time they have been working in a job covered through the Social Security system. This is measured through quarters of coverage.

Here a person must have at least one QC for each calendar year. The year they obtain the age of 21 and the earlier of the year which they obtain the age of 62 or the year of death. Also a person should have at least six total QCs and will not be required to have more than 40 QCs to be fully insured. The fully insured status is used for other benefits.

How to Apply:
It mainly based on when a person claims RIB. Not every person will desire to begin collecting their benefits at the same time. An application need to be filed with the Social Security Administration before one can collect RIB. There are several ways to apply for the benefits like applying online, you can apply by mail, applying at your local social security office or you can apply with the Immediate Claims Taking Unit at 1-800-772-1213.

Benefit Amount:
The amount of a RIB payment is based upon several factors, including: social security payroll taxes paid into the Social Security Trust Fund or SSTF, the age at which benefits are claimed, the current earned income of an individual and military service.

Credits for delayed Retirement:
Delayed Retirement Credits are accrued in any month between the month in which a person attains full retirement age and the month they attain seventy years of age and they postpone claiming RIB. Person who already claims RIB may also voluntarily decide to stop receiving their payments temporarily to accrue Delayed retirement credits beginning at their full Retirement age.

No comments:

Post a Comment