Retirement

The wage base in 2013 is $113,700. It’s an increase over the 2012 Social Security wage base, which was $110,100. The wage base increase follows an increase last year over the 2011 Social Security wage base, which was $106,800.
Social security taxes are the taxes that are taken from your paycheck to contribute to the social security program. However, there is a taxable wage base limit, and earnings above this amount are not taxed.

Everyone born in 1929 or later needs 40 Social Security credits to be eligible for retirement benefits. You can earn up to four credits per year, so you will need to work at least 10 years to become eligible for retirement benefits.
Each year the amount of earnings needed for a credit rises as average earnings levels rise. In 2012, you receive one credit for each $1,130 of earnings, up to the maximum of four credits per year.
If you become disabled before age 62, the number of credits needed for entitlement to disability benefits depends on your age at the time you become disabled.
If you die before age 62, the number of credits needed for survivors to receive benefits on your record depends on your age at the time you die.

Everyone born in 1929 or later needs 40 Social Security credits to be eligible for retirement benefits. You can earn up to four credits per year, so you will need to work at least 10 years to become eligible for retirement benefits.
Each year the amount of earnings needed for a credit rises as average earnings levels rise. In 2012, you receive one credit for each $1,130 of earnings, up to the maximum of four credits per year.

The Social Security Administration, who made the wage base 2013 announcement (The wage base in 2013 is $113,700) also announced that people receiving social security benefits will get a cost of living adjustment (or COLA) adjustment in 2013. Social security benefits will go up 1.7% in 2013. They increased 3.6% in 2012.

The 2012 social security tax rate is 6.2% of your earnings (or 12.4% for self employed tax),The employer will still need to pay 6.2%
The 2011 Payroll Tax Cut temporarily lowered the social security tax rate for the employee to 4.2% in 2011.The employer will still need to pay 6.2%

If you retire in 2013, the maximum benefit for a worker retireing at full retirement age is $2,533 a month = $30,396 a year. ($2,513 a month in 2012, $30,156 a year),
If you are age 62 in 2013 the maximum you would receive is $1,923, $23,076 a year.
If you are age 70 in 2013 the maximum you would receive is $3,350, $40,020 a year.

To stake a claim to your ex-spouse's Social Security benefits you must be married for at least 10 years.
If you make it for 10 years, you can collect a Social Security benefit based on up to half of your ex's earnings or on the basis of your own earnings whichever is higher.

Your Social Security payment is figured using a complex calculation based on a 35-year average of your covered wages. Each year's wages are adjusted for inflation before being averaged.
If you worked longer than 35 years, the government will use the highest 35 years.
If you worked for less than 35 years, they'll average in zeros for the years you are lacking.
If you can avoid zeros by working a couple of years longer, you'll increase your Social Security payment.

Once an ex-spouse passes away, you'll be treated just like a widow or widower. If you are at least 60, you'll be able to collect your late-spouse's benefit and allow your own benefit to grow unclaimed until you reach age 70, when you can switch if your own is higher,
The longer your ex-spouse delays claiming Social Security, the better it is for you. You will get to claim half of his or her maximum Social Security. Or once you and your ex-spouse reach full retirement age (66-68) you can claim half your ex's benefit and let your own grow untouched until you're 70.