Social security is income most people rely on when they hit retirement age. Even though the income any individual receives is typically not enough to cover all their monthly expenses, every little bit helps. It is important to understand the basics and benefits of social security in Washington State, including eligibility, how it is calculated and your eligibility for Medicare.
Eligibility
Every citizen who would like to take advantage of their social security benefits must have a certain number of credits the Social Security Administration awards after hitting a certain income threshold. In 2013, the minimum amount for one credit is $1,160 earned. Each time a citizen hits that increment, another credit is earned. Each person can earn 4 credits per year. The minimum earnings increase slightly each year. People who retire at age 62 or older will need 40 credits in the system to obtain their benefits. The requirements decrease at various age levels, depending on the circumstances of a person’s inability to work.
Social Security and Medicare
The social security credits you earn also gain you access to Medicare benefits when you reach the age of 65. If you are disabled before the age of 65 and are eligible for social security in Washington State, you can receive Medicare benefits as well after 24 months. There are certain conditions that are not subjected to this rule, including those with permanent kidney failure or Lou Gehrig’s disease.
Calculations
The total benefits you will receive upon retirement fully depend on your work history and the earnings you made throughout your lifetime. The earnings you received are adjusted to reflect any changes that have occurred since the year you earned the income. An average is then calculated based on the last 35 years you were employed. The Social Security Administration then applies a formula to arrive at your benefit amount.
As you get closer to retirement age or are suddenly disabled, it can seem confusing to navigate the system for social security in Washington State. There are many factors to consider regarding which age is the best for you to take your benefits, as well as when you should take Medicare and which program you should participate in. These questions are best answered by a reputable agent who has a full understanding of the system and can ensure you receive the benefits you are entitled to, as well as have proper coverage to protect you in a time of illness or injury.
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