Question: If I retire at age 63 and don't collect Social Security until I turn 65, will I get the same benefit I would have gotten if I had worked until age 65?
Answer: It depends on how long you've worked, how much you've earned each year and how much you'd make if you worked the extra two years. Benefits are based on your 35 highest-earning years. If you don't pay in to the system for that long, the calculation includes a $0 entry for each missing year.
Even if you already have 35 years of credit, working the extra two years can boost your benefit by replacing lower-earning years in the formula with higher-earning years. To get a handle on your situation, dig up the Social Security statement you should have received around your birthday, or order a new one at www.socialsecurity.gov. It lists your earnings history. Plug your numbers in to the benefits calculator at the same Web site and add your best guess of what you'll earn in the future. You'll get a solid estimate of what your benefits will be if you quit at age 63 compared to 65. To keep the comparison fair, assume that you will claim benefits at the same age in both cases.
Question: I'm 56 years old and was laid off by my company in March. I asked the benefits manager for a pension statement, but he declined to give it to me. Is this legal?
Answer: You are entitled to receive a benefits statement that shows the present and future value of your pension, but the company can postpone giving it to you. Under the Employee Retirement Income Security Act, or ERISA, the federal law governing employee benefits plans, your former employer has up to 180 days after the close of the plan year in which you were terminated to provide you with a statement. If the company's pension-plan year runs from July 1 to June 30, your employer has until Jan. 1, 2005, to provide you with a statement.
If you request information about your rights under ERISA, the plan administrator must respond within 30 days. You can also get free help from one of the pension information and counseling projects around the country. To find one in your area, see the Pension Rights Center at www.pensionrights.org and click on "Pension Help." If your case is particularly complex, consider hiring a pension lawyer. Click on "National Pension Lawyers Network," a free referral service.