Social Security is a foundational income source for millions of Americans as they enter retirement. Yet, surprisingly few non-retired Americans know what they’ll actually receive from Social Security. A recent study by the National Institute on Retirement Security (NIRS) shows that just 11% of Americans not yet retired are confident about their future Social Security benefits. Meanwhile, about 24% are “not very sure,” and 22% have no clue how much they might receive. This lack of clarity can make it harder to plan for retirement, especially for those relying heavily on these benefits.
If you’re among the majority who’s uncertain about your Social Security benefits, addressing how to estimate them could provide peace of mind and better planning. Let’s look into how to get your Social Security estimates, interpret them, and ensure their accuracy.
Estimate
Getting a reliable estimate of your Social Security benefits is simpler than you might think. According to Tyler Bond, NIRS’s research director, workers can create a “My Social Security” account on the Social Security Administration (SSA) website to access estimates of future benefits. This online account offers a breakdown of estimated monthly benefits based on current records, assuming you retire at various ages.
To set up a “My Social Security” account, you must be at least 18 years old and provide some personal identification information. If you’re over 60 and don’t have an online account, you can request a mailed paper statement instead. This account not only allows you to review your projected benefits but also gives a snapshot of your earnings history and contributions, which are key to calculating benefits.
| Action | Requirement |
|---|---|
| Create “My Social Security” | Age 18+, Social Security number |
| Request paper statement | Age 60+, no online account |
Statement
Once you access your Social Security statement, it’s helpful to understand what the numbers mean. Joe Elsasser, a certified financial planner, notes that your Social Security benefits are affected by age, earnings history, and cost-of-living adjustments (COLA). Your benefits are most accurate if you’re nearing age 62, the earliest eligibility age for Social Security benefits. Waiting longer to claim benefits up to age 70 can increase your monthly checks, but these estimates will generally remain stable, assuming similar wage and inflation trends.
The statement highlights your monthly benefit if you claim at specific ages, including 62, your full retirement age (between 66 and 67 for most), and 70. The estimated monthly benefits incorporate expected COLA adjustments, which aim to keep Social Security benefits in line with inflation.
| Retirement Age | Monthly Benefit Adjustment |
|---|---|
| 62 | Reduced benefit |
| Full retirement age | Full benefit |
| 70 | Highest benefit |
Accuracy
For your Social Security estimates to be as accurate as possible, your earnings history must be correct. Your benefits are based on your 35 highest-earning years, making it essential that your records with the SSA are accurate. If there’s an error, you may end up receiving a smaller benefit than you deserve.
Mistakes can happen, especially if there were payroll errors or missing income records. You can verify and correct your earnings history by comparing it to your W-2 forms, pay stubs, or tax returns. Any discrepancies can be addressed by taking these documents to your local SSA office for correction.
| Document for Verification | Purpose |
|---|---|
| W-2 Form | Verify annual income |
| Pay stubs | Confirm earnings periodically |
| Tax return | Cross-check annual earnings |
Future
Social Security statements are based on current contribution levels and projected benefits, but the future of Social Security funding could impact what people receive. Current projections show the Social Security Trust Fund may face a shortfall, which could affect benefits, particularly for younger workers. Payroll taxes will still cover a portion of benefits, but some future beneficiaries may see a reduced amount unless Congress makes changes.
Elsasser advises planning with a possible benefit reduction in mind rather than expecting benefits to disappear entirely. A moderate approach is to assume some reduction for younger workers and consider personal savings and retirement plans to supplement Social Security.
Given the simple steps to access and verify your Social Security estimate, everyone should check their statement. Ensuring accuracy and adjusting for future changes will put you in a better position to plan for a comfortable retirement.
FAQs
How can I get my Social Security benefit estimate?
Log into “My Social Security” on the SSA website.
Can I receive a paper Social Security statement?
Yes, if you’re over 60 and don’t have an online account.
What does my Social Security statement show?
It shows monthly benefits at ages 62, full retirement, and 70.
How can I correct errors in my earnings history?
Bring W-2s or tax returns to your local SSA office.
Will Social Security benefits decrease in the future?
Possibly, due to funding shortfalls; future changes are uncertain.
