Social Security

I Testing Yourself On SS Basics I Today, nearly everyone has a stake in Social I Security — either as a taxpayer or as a person I getting benefits. See how much you know about this important program by answering the questions below. Answers are at the end 1. You must be at least 62 to get Social Security. True False | 2. About how many Americans now get Social Security checks? (a) Nearly 1 in every 6 persons (b) 1 in 10 (c) 1 in 17 (d) 1 in 25 3. How long can monthly benefits be paid once they start? (a) 5 years (b) 8 years (c) 15 years (d) None of these 4. How long must a worker have been covered under Social Security before his or her surviving children can get benefits? (a) 1 year (b) 1<A years (c) 5 years (d) 10 years 5. A WORKER MUST be permanently and totally disabled in order to be eligible for disability benefits. True False 6. A retiree can work part time and still receive "Social Security checks. True False 7. Someone who retires at 65 in January 1985 after paying maximum Social security taxes each year 1937 through 1984 would has paid in •about: (a) $25,000 (b) $50,000 (c) $80,000 (d) $168,000 8. How long must you work at a job before your reported earnings can count toward Social Security benefits? (a) 3 years (b) 5 years (c) 7 years (d) None of these 9. A majority of Social Security beneficiaries now must pay Federal income tax on their monthly benefits. True False 10. The cost of administering Social Security is roughly what percent of benefits paid out? (a) Less than 10 percent (b) 23 Percent (c) 40 percent (d) 55 percent ANSWERS — How well did you do? If you got 9 or 10 right, you did "excellent". A score of 7 or 8 would be "good", and 5 or 6 "average. 1. False. Beneficiaries range from infants to centenarians. Many Younger people receive disability and survivors checks. 2. (a) is correct. There are about 36 million people receiving monthly payments, which represents nealy 1 in 6 persons. 3. (d) is correct. Social Security benefits can be paid for as long as a person continues to meet all requirements.

4. (b) is correct. Children can receive survivors benefits if a deceased parent had work- I ed at least \Vz years during the three-year period before death. 5. False. A worker can be paid disability, benefits if a severe impairment prevents him or her from working for at least 12 months. 6. True. In 1984, a person 65 through 69 can I earn up to $6,960 ($5,160 if under 65) and receive all benefits. For earnings over this amount, $1 is withheld from benefits for each I $2 earned. There is no earnings limited for people 70 or older. . \ , I 7. (a) is correct. A person who paid in maximum Social Security taxes each year 1937 would have paid in $21,860.99 in those 48 years. And with a maximum monthly benefit of $725 ( not counting any benefit increases payable in I 1985 or later) he or she would get back in I benefits — in less than 30 months — an amount _ equal to taxes paid in. 8. (d) is correct. Any and all covered employment of self-employment can count I toward future benefits. There is no minimym "vestii^j" period as is true with many private pension plans. Today nine out of 10 jobs are I covered by Social Security. 9. False. Only about one in 10 Social Security beneficiaries — those with substantial income — must pay Federal income tax on part of their benefits. In no case, however, will over one-half of the benefits be subject to tax. 10. (a) is correct. Administrative costs are I only about 1.3 percent of benefit payments. ^

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