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third quarter, and nothing during the fourth quarter. In 2001,workers covered by social security received one credit for $830of earned income in a calendar quarter. Carlos received two socialsecurity work credits for the year 2001—one for the first quarterand one for the third quarter.With certain exceptions, workers need 40 work credits to becomeeligible for social security benefits. Forty work credits equal ten yearsof contributions to the fund. However, the ten work years do not needto be consecutive. The actual amount to be paid by social security willdepend on your average earnings over a period of years. The more youearn, the more you receive in benefits, up to a certain limit.People born before 1938 can retire at the age of 65 and receive fullbenefits, or they can retire at 62 and receive reduced benefits. The minimumage at which you can retire and still receive full benefits is graduallyincreasing.Workers are entitled to disability benefits under the social securitylaw if they have a physical or mental condition that prevents them fromdoing substantial, gainful work and if the condition has lasted (or isexpected to last) for at least 12 months. Workers are also considereddisabled if they have any condition that is expected to result in death.Employer Retirement PlansSOCIAL SECURITYBENEFITSSocial security is animportant source ofincome for many retiredpeople. How are socialsecurity benefitscalculated?A pension plan is a retirement plan that is funded at least in partby an employer. The company where you work may offer a pension planto supplement social security. If it is financed entirely by the employer,Retired HireDid you ever wonderwhy some elderly individualsare workinginstead of enjoyingtheir retirement? Someenjoy being in thepublic, but others needextra money becausetheir retirement incomeisn’t enough to covertheir expenses. Manyteens think they aretoo young to worryabout retirement.However, according toMerrill Lynch, if youstarted a Roth IRA atage 16 and maximizedyour yearly contributions,when you turned46, you would havean after-tax salary of$25,480 for the next20 years. What doyou think is the bestage to start savingfor retirement?Get involvedGet a part-time job andbegin saving a smallpercentage of yoursalary each month.Investigate otherrelatively risk freemoney market options.Chapter 36: Retirement and Wills 773