Social Security 40 points question

[gurusw]

Hi,

I know there is lot of skeptimism about social security benefits, but I'm going to ask this anyways.

I'm working in USA for almost 7 yrs now, and my spouse is house-wife. I guess at the completion of 8 yrs of payment of social security taxes, I will become eligible for social sec benefits. Is it true?

Do the SS benefit increase as I work for more years? Or the benefits remain the same if I worked for 8 vs 30 years? Is there a cap on benefits? Do these benefits start at age 59.5 or 65?

What's the requirement for being eligible for medicare? Do medicare benefits start at age 65?

What are my wife's options for medical plans when I retire? What's the min time she would have to do a job for medicare eligibility?

All the above questions assuming we LIA. If we R2I, I guess all the paid taxes are gone, right?

[kovai23]

I'm working in USA for almost 7 yrs now, and my spouse is house-wife. I guess at the completion of 8 yrs of payment of social security taxes, I will become eligible for social sec benefits. Is it true?

I believe it is 10 years. You get a maximum of 4 credits for each year you work and need 40 credits to be eligible fo social sec benefits.


Do the SS benefit increase as I work for more years? Or the benefits remain the same if I worked for 8 vs 30 years? Is there a cap on benefits? Do these benefits start at age 59.5 or 65?

They do increase as you work more years. The benefit is calculated based on the average computed for the 30 most productive years. So, if you worked only 10 years, 20 years in the calculation will have 0 income and hence your benefits will be lower than if you had worked for 30 years.

I am not sure about the rest of your questions.

[Old-Spice2]

>>What's the requirement for being eligible for medicare? Do medicare benefits start at age 65?

Yes, it starts at 65. You need to live in US to avail the medicare benefits. The benefit usually does not cover entire medical expenses. Sometime you may have to buy Medi-Gap insurance to cover the difference. Also services for medicare are provided at certain hospitals (need confirmation).

>>>What are my wife's options for medical plans when I retire? What's the min time she would have to do a job for medicare eligibility?

She will be covered by medicare. I have seen few Indians who immigrated (GC) at age 50+ and got free medical treatment without any contribution in SS or Medicare. Wonder how this works?

>>>All the above questions assuming we LIA. If we R2I, I guess all the paid taxes are gone, right?

All medicare is gone for sure. SS you may get something if you are lucky. There are some chances that eligibility age may be pushed to 67 and beyond.

[Nattusbs]

Kovai23

You are correct in computing 40 credits for SS benefits.

Now, if one has accumulated the 40 credits, it does matter where one lives - Uncle Sam will send the check - that is if SS exists at that time!:confused:

Cheers

Nattusbs

[shoonya]

Folks, you can request a SS statement from SS administration at:
https://s044a90.ssa.gov/apps6z/isss/main.html

The stmt. gives you your estimated SS and medicare payments - assuming you keep on contributing at current rate... and also assuming SS benefits do not change over period of time.

[indian]

link to original thread: Social Security 40 points question


From: johnphot (Original Message)Sent: 10/12/2006 4:03 PM

HI,
I have to move back to India next year and by then I would have accumulated only 38 points. In that regard I couple of questions, would appriciate any info. ( I am a GC holder and would apply for REP before leaving.)

1. Is it okay to earn remaing 2 points some time in future (few years later)
so as to be eligible for SS after age 60.
2. Are there people in similar situation? what are your thoughts about this.
3. I have some US stocks, will income generated by selling them in future earn SS points?

thanks much for any suggestions, comments.

regards,
John

[indian]

From: gujjuSent: 10/12/2006 4:48 PM It cannot be income from capital gains, dividends. It has to be income from your W2.

Secondly, how do you get 2 points ? I thought you get points in packets of 4 (4 points each year).

[indian]

From: R21orNotSent: 10/12/2006 5:14 PM You get points in increments of 1. In a year you can get a max of 4 points. You get a point if your income is more than 780 and 4 points if your income from wages is more than 3880 in a year.

Important point to note is that the actual time when you worked does not matter. For ex, if you work just the last 3 months of the year and managed to earn more than 3880, you will still get 4 points for that year. You can also have breaks in employment, so you can always work in future but before you turn 60 and gain points. There are different rules I guess when you work after 60.

http://www.ssa.gov/retire2/credits1.htm

[indian]

From: johnphotSent: 10/12/2006 10:17 PM Gujju, R21orNot
thanks for the info on this, and allowed breaks in SS point accumulation.
One of the years I worked just for a month in USA and rest in India, and for that year I got 2 points, hence 38 points even though I would have filed 10 tax returns..

thanks,
John

[indian]

From: johnphotSent: 10/12/2006 10:22 PM also, then it looks like I will need to work in US for at least a month, some time in future, some how.

--John