2021
Understanding the Benefits
SSA.gov
What’s inside
Social Security: a simple concept
1
What you need to know about Social Security
while you’re working
4
What you need to know about benefits
6
Benefits for your family
11
When you’re ready to apply for benefits
14
Supplemental Security Income (SSI) program 16
Right to appeal
16
Online “my Social Security” account
17
Medicare
18
Some facts about Social Security
22
Contacting Social Security
23
1
Social Security: a simple concept
Social Security reaches almost every family, and at some
point, touches the lives of nearly all Americans.
Social Security helps older Americans, workers who
become disabled, and families in which a spouse or
parent dies. As of June 2020, about 180 million people
worked and paid Social Security taxes and about 65
million people received monthly Social Security benefits.
Most of our beneficiaries are retirees and their families
— about 49 million people in June 2020.
But Social Security was never meant to be the
only source of income for people when they retire.
Social Security replaces a percentage of a worker’s
pre-retirement income based on your lifetime earnings.
The amount of your average wages that Social Security
retirement benefits replaces varies depending on your
earnings and when you choose to start benefits. If you
start benefits in 2021 at your “full retirement age” (see our
“Full retirement age” section), this percentage ranges
from as much as 78 percent for very low earners, to about
42 percent for medium earners, to about 28 percent for
high earners. If you start benefits after full retirement
age, these percentages would be higher. If you start
benefits earlier, these percentages would be lower. Most
financial advisers say you will need about 70 percent of
pre-retirement income to live comfortably in retirement,
including your Social Security benefits, investments, and
personal savings.
We want you to understand what Social Security can
mean to you and your family’s financial future. This
publication, Understanding the Benefits, explains the
basics of the Social Security retirement, disability, and
survivors insurance programs.
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The current Social Security system works like this: when
you work, you pay taxes into Social Security. We use the
tax money to pay benefits to:
• People who have already retired.
• People who are disabled.
• Survivors of workers who have died.
• Dependents of beneficiaries.
The money you pay in taxes isn’t held in a personal
account for you to use when you get benefits. We use
your taxes to pay people who are getting benefits right
now. Any unused money goes to the Social Security trust
funds, not a personal account with your name on it.
Social Security is more than retirement
Many people think of Social Security as just a retirement
program. Most of the people receiving benefits are retired,
but others receive benefits because they’re:
• Disabled.
• A spouse or child of someone getting benefits.
• A divorced spouse of someone getting or eligible for
Social Security.
• A spouse or child of a worker who died.
• A divorced spouse of a worker who died.
• A dependent parent of a worker who died.
Depending on your circumstances, you may be
eligible for Social Security at any age. In fact, Social
Security pays more benefits to children than any other
government program.
Your Social Security taxes
We use the Social Security taxes you and other workers
pay into the system to pay Social Security benefits.
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You pay Social Security taxes based on your earnings, up
to a certain amount. In 2021, that amount is $142,800.
Medicare taxes
You pay Medicare taxes on all of your wages or net
earnings from self-employment. These taxes are for
Medicare coverage.
If you work for
someone else
Social Security
tax
Medicare tax
You pay
6.2%
1.45%
Your employer pays
6.2%
1.45%
If you’re self-employed
You pay
12.4%
2.9%
Additional Medicare tax
Workers pay an additional 0.9 percent Medicare tax on
income exceeding certain thresholds. The following chart
shows the threshold amounts based on tax filing status:
Filing Status
Threshold Amount
Married filing jointly
$250,000
Married filing separately
$125,000
Single
$200,000
Head of household
(with qualifying person)
$200,000
Qualifying widow(er) with
dependent child
$200,000
Where your Social Security tax dollars go
In 2021, when you work, 85 cents of every Social Security
tax dollar you pay goes to a trust fund that pays monthly
benefits to current retirees and their families and to
surviving spouses and children of workers who have died.
About 15 cents goes to a trust fund that pays benefits to
people with disabilities and their families.
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From these trust funds, Social Security also pays the
costs of managing the Social Security programs. The
Social Security Administration is one of the most efficient
agencies in the federal government, and we’re working
to make it better every day. Of each Social Security tax
dollar you pay, we spend less than one penny to manage
the program.
The entire amount of Medicare taxes you pay goes to
a trust fund that pays some of the costs of hospital and
related care for all Medicare beneficiaries. The Centers
for Medicare & Medicaid Services, not the Social Security
Administration, manages Medicare.
What you need to know about Social Security
while you’re working
Your Social Security number
Your link with Social Security is your Social Security
number. You need it to get a job and pay taxes. We use
your Social Security number to track your earnings while
you’re working and your benefits after you’re getting
Social Security.
Don’t carry your Social Security card. You should be
careful about giving someone your Social Security
number. Identity theft is one of the fastest growing crimes
today. Most of the time, identity thieves use your Social
Security number and your good credit to apply for more
credit in your name. Then, they use the credit cards and
don’t pay the bills.
Your Social Security number and our records are
confidential. If someone else asks us for information we
have about you, we won’t give any information without
your written consent, unless the law requires or permits it.
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Contact us if you need a Social Security number, or if
you need to change your name on your current card.
If you just need a replacement Social Security card,
you can request one online using your free, personal
my Social Security account as long as you are not
requesting a name change or any other change to your
card, and you meet other requirements. If you are unable
to request a replacement card online, please contact us.
If you need to change your name on your current card,
we will ask you to complete a simple application and ask
to see certain documents. We need to see originals or
copies certified by the issuing office. We can’t accept
photocopies or notarized copies of documents.
To get a Social Security number or a replacement card,
you must prove your U.S. citizenship or immigration
status, age, and identity. We don’t need proof of your
U.S. citizenship and age for a replacement card if they’re
already in our records. We only accept certain documents
as proof of U.S. citizenship. These include your U.S. birth
certificate, U.S. passport, Certificate of Naturalization,
or Certificate of Citizenship. If you aren’t a U.S. citizen,
we must see your immigration document proving work
authorization. If you don’t have work authorization,
different rules apply.
For proof of identity, we accept current documents
showing your name, identifying information and preferably
a recent photograph, such as a driver’s license or other
state-issued identification card, or a U.S. passport.
To apply for a change of name on your Social Security
card, you must show a recently issued document that
proves your name has been legally changed.
Be sure to safeguard your Social Security card. We limit
the number of replacement cards you can get to three in
a year and 10 during your lifetime. Legal name changes
and other exceptions don’t count toward these limits. For
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example, changes in noncitizen status that require card
updates may not count toward these limits. These limits
may not apply if you can prove you need the card to
prevent a significant hardship.
For more information, read Your Social Security Number
and Card (Publication No. 05-10002). If you aren’t a
citizen, read Social Security Numbers for Noncitizens
(Publication No. 05-10096).
All of our card services are free. Social Security never
charges for the card services we provide.
How you become eligible for Social Security
As you work and pay taxes, you earn Social Security
“credits.” In 2021, you earn one credit for each $1,470 in
earnings — up to a maximum of four credits per year. The
amount of money needed to earn one credit usually goes
up every year.
Most people need 40 credits (10 years of work) to qualify
for benefits. Younger people need fewer credits to be
eligible for disability benefits or for their family members to
be eligible for survivors benefits when the worker dies.
What you need to know about benefits
Social Security benefits only replace some of your
earnings when you retire, become disabled, or die. We
base your benefit payment on how much you earned
during your working career. Higher lifetime earnings result
in higher benefits. If there were some years when you
didn’t work, or had low earnings, your benefit amount may
be lower than if you worked steadily.
Retirement benefits
Choosing when to start receiving retirement benefits is
one of the most important decisions you’ll make in your
lifetime. If you choose to start receiving benefits when
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you reach your full retirement age, you’ll receive your
full benefit amount. We will reduce your benefit amount
if you begin benefits before reaching full retirement age.
You can also choose to keep working beyond your full
retirement age. If you do, your benefit will increase from
the time you reach full retirement age, until you start
receiving benefits, or until you reach age 70.
Full retirement age
If you were born from 1943 to 1960, the age at which full
retirement benefits are payable increases gradually to age
67. In 2021, if your birth year is 1954 or earlier, you are
already eligible for your full Social Security benefit. Use
the following chart to find out your full retirement age.
Year of birth
Full retirement age
1943-1954
66
1955
66 and 2 months
1956
66 and 4 months
1957
66 and 6 months
1958
66 and 8 months
1959
66 and 10 months
1960 or later
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NOTE: Although the full retirement age is rising, you
should still apply for Medicare benefits three months
before your 65th birthday. If you wait longer, your
Medicare medical insurance (Part B) and prescription
drug coverage (Part D) may cost you more money.
Delayed retirement
If you choose to delay receiving benefits beyond your
full retirement age, we’ll increase your benefit a certain
percentage, depending on the year of your birth. We’ll
add the increase automatically each month from the
time you reach full retirement age, until you start taking
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benefits or reach age 70, whichever comes first. There
is more information on delayed retirement credits on our
website at www.ssa.gov/benefits/retirement/planner/
delayret.html.
Early retirement
You may start receiving benefits as early as age 62. We
reduce your benefits if you start early by about one-half of
one percent for each month you start receiving benefits
before your full retirement age. For example, if your full
retirement age is 66 and ten months, and you sign up for
Social Security when you’re 62, you would only get about
70.8 percent of your full benefit.
NOTE: The reduction will be greater in future years as
the full retirement age increases.
Once you’ve made the decision about when
to start benefits, you can apply for Social
Security retirement benefits on our website at
www.ssa.gov/benefits/retirement/apply.
If you work and get benefits
You can continue to work and still receive retirement
benefits. Your earnings in (or after) the month you reach
full retirement age won’t reduce your Social Security
benefits. In fact, working beyond full retirement age can
increase your benefits. We’ll have to reduce your benefits,
however, if your earnings exceed certain limits for the
months before you reach your full retirement age.
If you work, but start receiving benefits before full
retirement age, we deduct one dollar in benefits for each
two dollars in earnings you have above the annual limit. In
2021, the limit is $18,960.
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In the year you reach your full retirement age, we reduce
your benefits by one dollar for every three dollars you
earn over a different annual limit ($50,520 in 2021) until
the month you reach full retirement age.
Once you reach full retirement age, you can keep
working, and we won’t reduce your Social Security
benefit, no matter how much you earn.
For more information about how work affects your
benefits, read How Work Affects Your Benefits
(Publication No. 05-10069).
NOTE: People who work and receive disability or
Supplemental Security Income payments have different
earnings rules. They must immediately report all
their earnings to Social Security no matter how much
they earn.
Retirement benefits for widows and widowers
If you’re receiving widow’s or widower’s benefits, you
can switch to your own retirement benefits as early as
age 62, assuming your retirement benefit is more than
the amount you receive on your deceased spouse’s
earnings. Often, you can begin receiving one benefit at
a reduced rate and then switch to the other benefit at the
full rate when you reach full retirement age. The rules are
complicated and vary depending on your situation, so
talk to a Social Security representative about the choices
available to you.
For more information about retirement benefits, read
Retirement Benefits (Publication No. 05-10035).
Disability benefits
If you can’t work because of a physical or mental
condition that’s expected to last at least one year or
result in death, you may be eligible for Social Security
disability benefits.
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Our disability rules are different from private or other
government agency plans. Qualifying for disability
from another agency or program doesn’t mean you
will be eligible for disability benefits from us. Having
a statement from your doctor saying you’re disabled
doesn’t mean you’ll automatically be eligible for Social
Security disability benefits. For more information
about Social Security disability benefits, read
Disability Benefits (Publication No. 05-10029). You can
apply for Social Security disability benefits on our website
at www.ssa.gov/benefits/disability.
People, including children, who have little income and
few resources, and who have a disability, may be
eligible for disability payments through the Supplemental
Security Income (SSI) program. For more information
about SSI, read Supplemental Security Income (SSI)
(Publication No. 05-11000).
If you become disabled, file for disability benefits as soon
as possible, because it usually takes several months to
process a disability claim. We may be able to process
your claim more quickly if you have the following when
you apply:
• Medical records and treatment dates from your
doctors, therapists, hospitals, clinics, and caseworkers.
• Your laboratory and other test results.
• The names, addresses, phone, and fax numbers of
your doctors, clinics, and hospitals.
• The names of all medications you’re taking.
• The names of your employers and job duties for the
last 15 years.
Your benefits may be taxable
Some people who get Social Security will have to pay
taxes on their benefits. About 40 percent of our current
beneficiaries pay taxes on their benefits.
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You may have to pay taxes on your benefits if you file
a federal tax return as an “individual” and your total
income is more than $25,000. If you file a joint return,
you may have to pay taxes if you and your spouse have
a total income that is more than $32,000. For more
information, call the Internal Revenue Service’s toll-free
number, 1-800-829-3676.
Benefits for your family
When you start receiving Social Security retirement or
disability benefits, other family members may also be
eligible to receive benefits. For example, benefits can be
paid to your spouse:
• If they’re age 62 or older.
• At any age if they’re caring for your child (the child
must be younger than 16 or disabled and entitled to
Social Security benefits on your record).
Benefits can also be paid to your unmarried children
if they’re:
• Younger than 18.
• Between 18 and 19 years old, but in elementary or
secondary school as full-time students.
• Age 18 or older and disabled (the disability must have
started before age 22).
Under certain circumstances, we can also pay benefits
to a stepchild, grandchild, step-grandchild, or an adopted
child. If you become the parent of a child after you begin
receiving benefits, let us know about the child, so we can
decide if the child is eligible for benefits.
How much can family members get?
Each family member may be eligible for a monthly benefit
that is up to half of your retirement or disability benefit
amount. However, there is a limit to the total amount of
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money that can be paid to you and your family. The limit
varies, but is generally equal to about 150 to 180 percent
of your retirement or disability benefit.
If you’re divorced
If you’re divorced, your ex-spouse may qualify for benefits
on your earnings. In some situations, they may get
benefits even if you aren’t receiving them. To qualify, a
divorced spouse must:
• Have been married to you for at least 10 years.
• Have been divorced from you at least two years if you
have not filed for benefits yet.
• Be at least 62 years old.
• Be unmarried.
• Depending on the circumstances, not be entitled to or
eligible for a benefit on their own work that is equal to
or higher than half the full amount on your record.
Survivors benefits
When you die, your family may be eligible for benefits
based on your work.
Family members who can collect benefits include a widow
or widower who is:
• 60 or older.
• 50 or older and disabled.
• Any age if they’re caring for your child who is younger
than 16 or disabled and entitled to Social Security
benefits on your record.
Your children can receive benefits, too, if they’re
unmarried and:
• Younger than 18 years old.
• Between 18 and 19 years old, but in an elementary or
secondary school as full-time students.
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• Age 18 or older and disabled (the disability must have
started before age 22).
Additionally, your parents can receive benefits on your
earnings if they were dependent on you for at least half of
their support.
One-time payment after death
If you have enough credits, a one-time payment of $255
also may be made after your death. This benefit may
be paid to your spouse or minor children if they meet
certain requirements.
If you’re divorced and have a surviving ex-spouse
If you’re divorced, your ex-spouse may be eligible for
survivor’s benefits based on your earnings when you die.
They must:
• Be at least age 60 years old (or 50 if disabled) and
have been married to you for at least 10 years.
• Be any age if they’re caring for a child who is eligible
for benefits based on your earnings.
• Not be entitled to a benefit based on their own work
that is equal or higher than the full insurance amount
on your record.
• Not be currently married, unless the remarriage
occurred after age 60 or after age 50 if disabled.
Benefits paid to an ex-spouse won’t affect the benefit
rates for other survivors receiving benefits on your
earnings record.
NOTE: If you’re deceased and your ex-spouse remarries
after age 60, they may be eligible for Social Security
benefits based on either your work or the new spouse’s
work, whichever is higher.
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How much will your survivors get?
Your survivors receive a percentage of your basic Social
Security benefit — usually in a range from 75 to 100
percent each. However, there is a limit to the amount of
money that can be paid each month to a family. The limit
varies, but is generally equal to about 150 to 180 percent
of your benefit rate.
When you’re ready to apply for benefits
You should apply for benefits about four months before
the date you want your benefits to start. If you aren’t ready
to apply for retirement benefits yet but are thinking about
it, you should visit our website to use our informative
retirement planner at www.ssa.gov/benefits/retirement.
To file for disability or survivors benefits, you should apply
as soon as you’re eligible.
You can apply for benefits on our website at
www.ssa.gov/benefits/retirement.
If you have a my Social Security account, you can get
an estimate of your personal retirement benefits and see
the effects of different retirement age scenarios. If you
don’t have a my Social Security account, create one at
www.ssa.gov/myaccount.
You also can get more detailed benefit calculations at
www.ssa.gov/benefits/calculators.
What you will need to apply
When you apply for benefits, we will ask you to
provide certain documents. The documents you’ll need
depend on the type of benefits you file for. Providing
these documents to us quickly will help us pay your
benefits faster. You must present original documents
or copies certified by the issuing office — we can’t
accept photocopies.
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Don’t delay filing an application just because you
don’t have all the documents you need. We’ll help you
get them.
Some documents you may need when you sign up for
Social Security are:
• Your Social Security card (or a record of your number).
• Your birth certificate.
• Your children’s birth certificates and Social Security
numbers (if you’re applying for them).
• Proof of U.S. citizenship or lawful immigration status if
you (or a child) weren’t born in the United States.
• Your spouse’s birth certificate and Social Security
number if they are applying for benefits based on
your earnings.
• Your marriage certificate (if signing up on a
spouse’s earnings or if your spouse is signing up on
your earnings).
• Your military discharge papers if you had
military service.
• Your most recent W-2 form, or your tax return, if you’re
self-employed.
We will let you know if you need other documents when
you apply.
How we pay benefits
You must receive your Social Security payments
electronically. One of the ways you can choose to receive
your benefits is through direct deposit to your account
at a financial institution. Direct deposit is a simple, and
secure way to receive your payments. Be sure to have
your checkbook or account statement with you when
you apply. We will need that information, as well as your
financial institution’s routing number, to make sure your
monthly benefit deposit goes into the right account.
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If you don’t have an account with a financial institution,
or if you prefer to receive your benefits on a prepaid
debit card, you can sign up for the Direct Express® card
program. With Direct Express®, payments go straight
to the card account. Another payment choice you can
consider is an electronic transfer account. This low-cost
federally insured account lets you enjoy the security and
convenience of automatic payments.
Supplemental Security Income (SSI) program
If you have limited income and resources (things you
own), SSI may be able to help. SSI financing comes
from general revenues, not Social Security taxes.
SSI makes monthly payments to people who are age
65 or older or who are blind or disabled. We don’t count
some of your income and some of your resources when
we decide whether you’re eligible for SSI. Your house and
your car, for example, usually don’t count as resources.
To apply for SSI, you can begin the process
and — in some cases — complete most or all of
your application online by visiting our website at
www.ssa.gov/applyforbenefits. You can also call us
toll-free at 1-800-772-1213 to set up an appointment with
a representative from your local Social Security office.
Right to appeal
If you disagree with a decision made on your claim,
you can appeal it. You can handle your own appeal
with free help from Social Security, or you can choose
to have a representative help you. We can give you
information about organizations that can help you
find a representative. For more information about the
appeals process and selecting a representative, read
Your Right to Question the Decision Made on Your Claim
(Publication No. 05-10058).
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Online “my Social Security” account
You can now easily set up a secure online
my Social Security account to access your Social Security
Statement to check your earnings and get your benefit
estimates. You may also be able to use your online
my Social Security account to request a replacement
Social Security number card (available in many states and
the District of Columbia). If you currently receive benefits,
you can also:
• Get your benefit verification letter.
• Change your address and phone number.
• Request a replacement Medicare card.
• Get a replacement SSA-1099 or SSA-1042S for
tax season.
• Start or change your direct deposit.
• Opt out of getting agency notices by mail for those
available online.
• Report your wages if you work and receive Social
Security disability insurance benefits, Supplemental
Security Income (SSI) payments, or both.
You can create a my Social Security account if you’re
age 18 or older and have a Social Security number,
valid email address, and U.S. mail address. To create an
account, go to www.ssa.gov/myaccount. You will need
to provide some personal information to confirm your
identity, and then choose a username and password.
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Medicare
Medicare is our country’s basic health insurance
program for people age 65 or older and for many people
with disabilities.
You shouldn’t confuse Medicare with Medicaid. Medicaid
is a health care program for people with low income
and limited resources. State health and human services
offices or social services agencies run the Medicaid
program. Some people qualify for just one program, while
others qualify for both Medicare and Medicaid.
Parts of Medicare
Social Security enrolls you in Original Medicare (Part A
and Part B).
• Medicare Part A (hospital insurance) helps pay for
inpatient care in a hospital or limited time at a skilled
nursing facility (following a hospital stay). Part A also
pays for some home health care and hospice care.
• Medicare Part B (medical insurance) helps pay for
services from doctors and other health care providers,
outpatient care, home health care, durable medical
equipment, and some preventive services.
• Medicare Advantage Plan (previously known as Part
C) includes all benefits and services covered under
Part A and Part B — prescription drugs and additional
benefits such as vision, hearing, and dental — bundled
together in one plan.
• Medicare Part D (Medicare prescription drug coverage)
helps cover the cost of prescription drugs.
Who’s eligible for Medicare Part A?
Most people get Part A when they turn 65. You qualify
for it automatically if you’re eligible for Social Security or
Railroad Retirement Board benefits. Or, you may qualify
based on a spouse’s (including a divorced spouse’s)
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work. Others qualify because they’re government
employees not covered by Social Security, who paid the
Medicare tax.
If you get Social Security disability benefits for 24 months,
you’ll qualify for Part A.
If you get Social Security disability benefits because you
have amyotrophic lateral sclerosis (Lou Gehrig’s disease),
you don’t have to wait 24 months to qualify.
Also, someone with permanent kidney failure requiring
dialysis or kidney replacement qualifies for Part A if
they’ve worked long enough, or is the spouse or child of a
worker who qualifies.
If you don’t meet these requirements, you may be able
to get Medicare hospital insurance by paying a monthly
premium. For more information, call our toll-free number
or visit Medicare.gov.
Certain people who were exposed to environmental health
hazards are entitled to Part A and can enroll in Part B and
Part D. These people have an asbestos-related disease
and were present for at least six months in Lincoln
County, Montana, 10 years or more before diagnosis.
Who’s eligible for Medicare Part B?
Almost every person eligible for Part A can get Part B.
Part B is optional and you usually pay a monthly premium.
In 2021, the standard monthly premium is $148.50. Some
people with higher incomes pay higher premiums.
Medicare Advantage plans
Anyone who has Medicare Part A and Part B can join
a Medicare Advantage plan. Medicare Advantage
plans include:
• Health Maintenance Organization (HMO) plans.
• Preferred Provider Organization (PPO) plans.
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• Private Fee-for-Service (PFFS) plans.
• Special Needs Plans (SNPs).
In addition to your Medicare Part B premium, you might
have to pay another monthly premium because of the
extra benefits the Medicare Advantage plan offers.
Who can get Medicare Part D?
Anyone who has Original Medicare (Part A or Part B) is
eligible for Medicare prescription drug coverage (Part D).
Part D benefits are available as a stand-alone plan
or built into Medicare Advantage, unless you have a
Medicare private fee-for-service (PFFS) plan. The drug
benefits work the same in either plan. Joining a Medicare
prescription drug plan is voluntary, and you pay an extra
monthly premium for the coverage.
When should I apply for Medicare?
If you’re not already getting benefits, you should contact
Social Security about three months before your 65th
birthday to sign up for Medicare. You should sign up for
Medicare even if you don’t plan to retire at age 65.
If you’re already getting Social Security benefits or
Railroad Retirement Board payments, we’ll contact you
a few months before you become eligible for Medicare
and send you information. If you live in one of the 50
states, Washington, D.C., the Northern Mariana Islands,
Guam, American Samoa, or the U.S. Virgin Islands,
we’ll automatically enroll you in Medicare Parts A and B.
However, because you must pay a premium for Part B
coverage, you can choose to turn it down.
We will not automatically enroll you in a Medicare
prescription drug plan (Part D). Part D is optional and you
must elect this coverage. For the latest information about
Medicare, visit Medicare.gov or call 1-800-MEDICARE
(1-800-633-4227) or TTY number, 1-877-486-2048 if
you’re deaf or hard of hearing.
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NOTES: If you don’t enroll in Part B and Part D when
you’re first eligible, you may have to pay a late enrollment
penalty for as long as you have Part B and Part D
coverage. Also, you may have to wait to enroll, which will
delay coverage.
Residents of Puerto Rico or foreign countries won’t
receive Part B automatically. They must elect
this benefit. For more information, read Medicare
(Publication No. 05-10043).
If you have a Health Savings Account (HSA)
If you have an HSA when you sign up for Medicare,
you can’t contribute to your HSA once your Medicare
coverage begins. If you contribute to your HSA after
your Medicare coverage starts, you may have to pay a
tax penalty. If you’d like to continue contributing to your
HSA, you shouldn’t apply for Medicare, Social Security, or
Railroad Retirement Board (RRB) benefits.
NOTE: Premium-free Part A coverage begins six months
before the date you apply for Medicare (or Social
Security/RRB benefits), but no earlier than the first month
you were eligible for Medicare. To avoid a tax penalty,
you should stop contributing to your HSA at least six
months before you apply for Medicare.
“Extra Help” with Medicare prescription
drug costs
If you have limited resources and income, you may
qualify for Extra Help to pay for your prescription drugs
under Medicare Part D. Social Security’s role is to help
you understand how you may qualify and to process
your application for Extra Help. To see if you qualify
or to apply, call Social Security’s toll-free number or
visit www.ssa.gov/extrahelp.
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Help with other Medicare costs
If you have limited income and few resources, your
state may pay your Medicare premiums and, in some
cases, other “out-of-pocket” medical expenses, such as
deductibles, copayments, and coinsurance.
Only your state can decide whether you qualify for
help under this program. If you think you qualify,
contact your Medicaid, social services, or health and
human services office. Visit Medicare.gov/contacts
or call 1-800-MEDICARE (1-800-633-4227;
TTY: 1-877-486-2048) to get their number.
Some facts about Social Security
2021 Social Security taxes
• You pay 6.2 percent and your employer
pays 6.2 percent.
• If you’re self-employed, you pay 12.4 percent.
• You don’t pay Social Security taxes on earnings
greater than $142,800.
2021 Medicare taxes
• You and your employer each pay 1.45 percent.
• If you’re self-employed, you pay 2.9 percent.
• Medicare taxes are paid on all of your earnings; there
is no limit.
• There are additional Medicare taxes for
higher-income workers.
Work credits in 2021
• For each $1,470 you earn, you receive one Social
Security “credit,” up to four per year.
• Most people need 40 credits to be eligible for
retirement benefits.
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• Younger people need fewer credits to qualify for
disability benefits or for their family members to be
eligible for survivors benefits.
Estimated average 2021 monthly Social
Security benefits
• All retired workers: $1,543
• Retired worker with only an aged spouse: $2,596
• All disabled workers: $1,277
• Disabled worker with a young spouse and one or more
children: $2,224
• All aged widows and widowers: $1,453
• Young widow or widower with two children: $3,001
2021 monthly federal SSI maximum payment rates
(Doesn’t include state supplement, if any)
• $794 for an individual
• $1,191 for a couple
Contacting Social Security
There are several ways to contact us, such as online,
by phone, and in person. We’re here to answer your
questions and to serve you. For more than 85 years,
Social Security has helped secure today and tomorrow by
providing benefits and financial protection for millions of
people throughout their life’s journey.
Visit our website
The most convenient way to conduct Social Security
business from anywhere is online at www.ssa.gov.
You can:
• Apply for Extra Help with Medicare prescription
drug plan costs.
• Apply for most types of benefits.
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• Find copies of our publications.
• Get answers to frequently asked questions.
When you create a personal my Social Security account,
you can do even more.
• Review your Social Security Statement.
• Verify your earnings.
• Get estimates of future benefits.
• Print a benefit verification letter.
• Change your direct deposit information.
• Request a replacement Medicare card.
• Get a replacement SSA-1099/1042S.
• Request a replacement Social Security card, if you
have no changes and your state participates.
Call us
If you don’t have access to the internet, we offer many
automated services by telephone, 24 hours a day, 7 days
a week. Call us toll-free at 1-800-772-1213 or at our TTY
number, 1-800-325-0778, if you’re deaf or hard of hearing.
A member of our staff can answer your call from 7 a.m. to
7 p.m., Monday through Friday, if you need to speak with
someone. We ask for your patience during busy periods
since you may experience a high rate of busy signals
and longer hold times to speak to us. We look forward to
serving you.
Schedule an office visit
You can find the closest office location by entering your
ZIP code on our office locator webpage.
If you are bringing documents for us to see, remember
that they must be original or certified copies that are
certified by the issuing agency.
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Notes
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Notes
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Notes
Social Security Administration | Publication No. 05-10024
ICN 454930 | Unit of Issue — Package of 25
January 2021 (Recycle prior editions)
Understanding the Benefits
Produced and published at U.S. taxpayer expense