www.ssa.gov <---- THE LINK TO WHERE TO FIND ALL THESE ANSWERS..

The first question below is about old-age benefits. Click on Retirement in the upper left-hand corner. Then click on Use our Retirement Planner in the right margin. Next, click on Calculators in the left margin. Use the Quick Calculator to perform these calculations:

#1: Estimate the monthly retirement income benefit for an individual born January 1, 1965 who is currently earning $40,000 per year. Enter $40,000 for current income and 1-1-1965 in the date of birth box. Scroll to the bottom and click on submit request. Perform the estimate using todays dollars. Write down the estimated monthly retirement benefit at age 67.

#2: Repeat the estimate using the same date of birth and current dollars; however, change the current earnings to $80,000. Again, record the estimated monthly retirement benefit at age 67.

#3: Repeat the estimate once again, using the same date of birth and current dollars. However, use $120,000 as the earnings amount. Again, record the monthly retirement benefit estimate at age 67.

Questions

1. Which of the three wage earners (the one currently earning $40,000, the one currently earning $80,000, or the one currently earning $120,000) will receive the highest monthly retirement benefit when he or she retires?

2. Which of the wage earners ($40,000, $80,000 or $120,000) will have the highest percentage of his or her income replaced through Social Security old-age benefits? To answer this question, multiply the monthly Social Security benefit corresponding to a given income level by 12 (to annualize the amount), and then divide by the corresponding current annual income value. What do you conclude from these calculations?

3. Repeat the first calculation that you performed (date of birth 1-1-65 and $40,000 income); however this time select "Inflated (future) dollars" rather than "Current Dollars." Record your answer, again for age 67. Is the corresponding value greater than or less than the first estimate you obtained? Explain the difference between the two values.

4. This question is unrelated to questions 1-3 and deals with disability. Click on the Disability link at the top of the page, then Disability Planner in the right margin.

a. What is necessary to qualify for disability benefits? Click on How You Qualify in the left margin. b. Under How You Qualify, you have an opportunity to look at the requirements for disability benefits more closely. Does Social Security use an easy or tough definition of disability? Click on What We Mean by Disability. c. Social Security also administers the Supplemental Security Income (SSI) program. What is the major difference in the eligibility requirements for Social Security disability and SSI payments? Click on the SSI link at the top of the page.

5. Click on the Survivors link on the home page. Then click on Survivors Planner. How do you qualify for Survivors benefits under Social Security? Click on the Planning for Your Survivors link in the left margin.