Social Security benefits for GC holders

N

nonu21

Registered Users (C)
Do I have this correct:

If we work only 10 yrs., and stay unemployed for the rest of our lives, we will get SS benefits which are about $1500-2000 p.m. (if our salary is around $80,000 p.a.). I understand that these benefits start at age 67, and will be available even if we do not live in the US.

Please correct me if any of my assumptions are wrong. Thanks.
 
No Title

You need to earn 40 credits (and in most cases it translates to 10 years of continous employment).

Also non-citizens need to be physically present in the U.S. to receive SS payments (unless your home country has a treaty with the U.S.).

I agree with JoeF on own savings... time to load up fully on 401(K) and blue chip leaders this year!
 
after the 40 credits...

Suppose we work the 10 years (or so) and get the 40 credits.

Does the retirement income vary if we have 40 credits vs. lets say 100 credits - ie. if we work 10 years vs. 25 years - will we get, say , $500 p.m. instead of the max $1500(or whatever).

Or is the retiremnet income a flat rate - say, $1500 irrespective of the number of credits >40.

Thanks
 
No Title

The payout is based on your contribution (i.e. credits). It is NOT a communist system where everyone gets a flat benefit!
 
No Title

I believed the benefits also take in accoun actual
taxes you paid than just credits.

I think that the maximum SS taxable salary is around
$77,000 bjut you really do not need that much to earn
4 credits. So if two persons, one earning $80,000 and
the other $50,000, work for 40 years and retire. They may
bother have 160 credits but I still believe the first
one will enjoy more benefits.

I also think that there is no maximum limit on medicare taxable
income.
 
ajit - i cant find this in the SSA website

from my detailed reading of their website, it looks as if the benefits can vary about 10-20% based on >40 credits, not vary by 200-300% - ie. someone who works for 10yrs - 40 credits will not get one-third of someone who works 30 yrs - 120 credits.

let us assume that the person earns $80,000 p.a., i.e. he is in the highest income bracket.

is my understanding correct?
 
the retiremet benefit is always a function of the salary paid

the retiremet benefit is always a function of the salary paid to you in the last two years befire retirement.
 
No Title

Yes, a persons who earns $80,000 p.a pays the same
amount of SS taxes as Bill Gates or Bush.

That is why on 1040 Form exuist Line 61:"Excessive Social Security Tax withheld", it happens a lot if you hold two jobs in a tax year
and each pays $50,000. Both twm employers may pay 15% (half
deducted from your pay) of your salary to SSA so that your
overall SS wages is 100,000, way above the maximum. That
is why many bragged about their 6 digit income but when discussing
taxees they said their SS wages is the same as their medicare
wages so you know these guys earn even less than $80,000.

But I did know some H1B workers who think they should
not pay any SS taxes put everything paid on Line 61.
 
No Title

More or less correct. It is much more detailed than any simple arithmetic.
Check your yearly statement from SSA (mailed around your birthday)
 
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