i only need 1 credit point to reach the 40 credit points. i know that for 2008, a credit point is given for every $1050 earnings. if i can earn this in a month's time, can i avail of the retirement already?
2007-12-05 05:58:15 · 4 answers · asked by derek 1 in Business & Finance ➔ Taxes ➔ United States
40 credits represents 10 years of work.
Social Security benefits are calculated on 35 years of work, so when you get to age 62 or 66 or 67 (whatever the age requirement is), if you only worked 10 years, you will have your lifetime earnings divided over 35 years and your benefit will reflect that.
It's best to keep working as long as you can.
2007-12-05 06:35:42 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Right, spend a bit of time flipping burgers or greeting folks at WalMart and you will be over the top for minimum benefits. You don't mention your age. If you retire before your full retirement age (which I am presuming is 66) your benefits will be cut by 30% at 62 and increase incrementally as your retirement date approaches 66 but you will get them for more years. I'm also guessing you spent a career in a job where your salary was not subject to FICA. If so, the benefit based on the portion of your average indexed monthly earnings (the 35 year average) will ge reduced from 90% to 40%.
2007-12-05 07:37:01 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you already have 39 quarters, yes working enough to pick up one more credit will make you eligible. To actually collect, of course, you also have to meet the age requirements.
2007-12-05 06:11:35 · answer #3 · answered by Judy 7 · 2⤊ 0⤋
vb is correct, but you still can't collect until you're at least 62 (and you'll get reduced benefits if you start that early (20-25% reduction based on your full retirement age and if you are several or many yrs from retirement age, just quitting now won't help you.
2007-12-05 07:45:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋