rosalynd, SS is a "pay as you go system". That means that the money taken out of your paycheck every week is spent to fund THOSE ALREADY RECEIVING SS checks every month. You seem to be operating under the misinformed belief that whatever money you are presently required to pay into the system is somehow being earmarked for YOU at a future point in time. It's not. When you retire and are eligible to collect SS benefits it will the younger working population's tax contributions that will fund your checks. And there's the rub... there is a large population "bubble" of retirees hitting 62-65 and that means a LOSS of people contributing weekly and an increase in the number of people withdrawing benefits! SS was originally set up as an INSURANCE policy against a catastrophe like the Great Deperssion; never was it ever intended to solely fund someone's retirement. But over the years, a large segement of the population has presumed just that. It was designed to be part of a "three legged stool"... SS, pensions from worker's companies, and personal SAVINGS. Additionally, the age of retirement set at the inception of the system (65, I believe) was actually beyond the average age of death of most Americans. My parents withdrew every dime they'd contributed to the system within 18 months of receiving their first check! Mum is now nearly 80, so she's been on the dole for nigh on 15 years now. Roll forward to 2006... companies are defaulting on defined pension plans, the age of retirement has been increased only a bit (is many years below the average age of death; about 15 years for me!), and the average American doesn't SAVE a dime. The IRA was introduced to stimulate retirement savings... the contribution one may make has increased from $2K at its inception to nearly $4500 now. Additionally, they've sweetened the pot for lower earners by permitting you to pay taxes "up front" (presumably when you are earning less and paying less), allowing the nut to grow and compound TAX-FREE until you decide to withdraw funds from it. In light of the loss of company pension plans this is a nice deal... but only for the disciplined. Taken in total, this is an impending disaster. The "cures" are not going to be popular, but they are necessary. Let's hope more politians find the stomach to stand up and state "the emperor isn't wearing any clothes". Payroll taxes will HAVE to go up. The retirement age MUST be raised to more closely reflect increased life spans, and (I believe) we will have to means test. The very wealthy will have to say good bye to their "cut" for the greater good. After all, that's how an INSURANCE policy works, more people with "safe" histories pay to cover the losses of unluckier policy holders. This isn't something for the courts, this is something for the voting booth.

Go see your Social Security Office. You'll should call and make and appointment first. As other posters have said, the rules are many. If you have also worked and paid social security taxes, that will be considered. Basically, the amount you might get is computed in several ways and then the maximum benefit one is used. The various cases may be (1) your wages and lifetime contribution alone, ( 2) 50% of your spouce's amount, or (3) if disabled, the disabled amount. If you were born after a certain date, the full retirement age is increased above 65. At one time, the full retirement age was to increase in steps from 65 to 67. I have been retired long enough to have lost track of the current rules. If you are elgible at age 65 for full retirement, you can take early retirement (as early as 62) with a reduction in payments. The reduction is based on the average life expectancy. When I retired, life expectancy was age 77, e.g., half of your population group will have expired by age 77. The reduction works out to be 5/9 percent per month early, thus if you retire 3 years early, the reduction is (36 months x .05)/9 or 0.20 which is 20%. Is this bad? It depends on how long you will live. If you do not expect to live beyond 77, then early retirement is not a loss. You loose only if you live beyond 77. Here's why. If you retired at the normal age of 65, then the time span to 77 is 12 years; if retired at age 62, the time span to 77 is 15 years. Check it out. You'll find that the total money paid out over the longer time is exactly the same as that of the shorter span. For example, suppose the normal payout was $100 per month. The amount for 12 years is 12 x 12 x 100 = 14,400. Now suppose that you retired 3 years early. The payout is $80 per month. The amount for 15 years is 15 x 12 x 80 = 14,400. After age 77, the early payout plan is less than the other and the difference increases each year. Since I retired, life expectancy may have increased to 78 years. These calculations give amounts based on the current value of the dollar. As time goes by, there are COLA increases that will increase the payout to offset inflation to some degree. In my experience, the SS cost increase numbers do not fully cover the real inflation of the basics.

chisue, FICA tax was designed to pay for social security benefits and it's been overcharging for that purpose since it started. Also, remember that self employed people (as I was) pay double the amount, currently 15.2%. It's a heavy tax and more isn't needed. alisande, economically it's a free country. There's a (maybe inadequate) safety net for those who falter or fare less well than others, but isn't each individual alone responsible for their lot in life and to take care of themselves and any others they support? I won't go along with any Robin Hood sentiment, those who obey the law and work hard to do well are entitled to their rewards. Those who don't strive and try anything possible to improve their own financial adequacy or well-being will do poorly and are entitled to those consequences too. There should be far more programs to help people redirect their lives and learn market-demanded job skills but beyond that, hmmm.

I signed up for Social Security at age 62. I applied online. A day later a Social Security worker phoned me to ask one question and told me the amount I would receive and the date SS would start. Painless. Then about three months before I turned 65 I received my Medicare card through the mail. Because I was already getting SS I was automatically sent a Medicare card. Both Part A and Part B are shown on the card. If I chose not to pay for Part B the instructions said to mail back the card and they would send me a card for Part A only. If I chose to keep Part B with premiums deducted from my SS checks I was to separate the Medicare card from the rest of the paperwork they sent and put it in my wallet. Nothing more needed to be done. Easy peasy. I never drove anywhere to stand in any line to sign up for either Social Security or Medicare. Kessala