Workers Urged to Check Social Security Statements

The Social Security Administration offers a free online tool that allows individuals to estimate their monthly benefit payments and manage their benefits.

Why it matters: Many people are unaware of how much they will receive in Social Security retirement benefits, making it difficult to plan for their financial future.

The details:

• Creating a “My Social Security” account is essential for tracking benefits, viewing eligibility, estimating future payments, and managing necessary documents.
• To sign up, users need to create a login.gov account or use existing credentials, verify their email address, create a secure password, set up two-factor authentication, and confirm their identity.
• The dashboard displays the user’s full earnings record, allowing them to review the accuracy of their taxable income and request corrections if needed.
• The Retirement Calculator provides estimates based on different retirement scenarios, such as retiring early at 62, at the normal retirement age, or maximizing payments by waiting until 70.

Additional features of a My Social Security account include replacing a Social Security card, viewing benefit verification letters, checking application status, reporting wages for SSDI recipients, and calculating spousal benefits.

Most people are unaware of the amount they will receive in Social Security benefits, despite it being a major source of income for retirees.

By the numbers:

• Only 11% of non-retired Americans know exactly how much they will receive in benefits.
• 24% are “not very sure” of their benefit amounts, and 22% have no idea.
• In 2024, nearly 68 million Americans will receive a monthly Social Security benefit, totaling about $1.5 trillion paid during the year.
• Retired workers receive an average of $1,918 per month.

To access benefit estimates, individuals aged 18 and up can create a “My Social Security” account on the Social Security Administration website.

What to watch:

• Check statements annually to ensure there are no errors in your earnings history.
• Be cautious of phishing emails attempting to steal personal information by redirecting to false links.
• Expect potential benefit cuts for younger workers, but do not assume the program will not exist in the future.

For assistance, call 1-800-772-1213 to schedule an appointment with the Social Security Administration or get help by phone.

Knowledge gaps concerning Social Security spousal and survivor benefits could lead to lost income for married couples.

The details:

• Spouses can claim Social Security on their retired partner’s work record, even if they have no work history themselves, as long as they meet certain age and marriage duration requirements.
• Spousal benefit amounts are determined by the claiming age of the spouse and the primary insurance amount (PIA) of the retired worker, with maximum benefits received when claiming at full retirement age.
• Widows and widowers can collect either Social Security retirement benefits or survivor benefits, but not both, with eligibility depending on age, remarriage status, and marriage duration before the spouse’s death.
• Divorced spouses can claim Social Security spousal benefits on their ex-partner’s record if they meet age, marriage duration, and remarriage status requirements.

Understanding these rules is crucial for maximizing Social Security benefits and avoiding potential income loss.

Full story

Social Security is a vital source of income for most retirees, but many people are unsure about how much they will receive in benefits. According to a recent survey by the National Institute on Retirement Security, only 11% of non-retired Americans know exactly how much they will get from Social Security, while 24% are “not very sure” and 22% have no idea. To help workers estimate their benefits, the Social Security Administration provides detailed statements online.

Anyone aged 18 and older can access these by creating a “My Social Security” account on the agency’s website. Workers aged 60 and over who do not have online accounts will still receive paper statements in the mail, and everyone can request paper statements if needed. Tyler Bond, research director at NIRS, said, “Workers can go to the Social Security Administration website, log into their own account, and receive an estimate of their future benefit amounts.

Most workers seem not to have done that and don’t seem to have a good sense of what they will get personally from Social Security.”

For those aged 62 to 70, checking your Social Security statement is important to see how annual cost-of-living adjustments affect your monthly benefit checks. Younger workers can also benefit from checking their statements to get an idea of how much of their pre-retirement income may be replaced by Social Security.

Check your benefits regularly

It’s crucial to review your Social Security benefit statements annually to ensure there are no errors in your earnings history. Jim Blair, vice president of Premier Social Security Consulting and a former Social Security administrator, advised, “If you see earnings missing or not posted correctly, you can get that fixed. And the earlier you catch it, the easier it is to fix it.”

To correct your earnings record, bring your W-2 form or other proof of income to your local Social Security Administration office.

As the agency transitions to a more secure online system, account holders should also be cautious of phishing emails attempting to steal personal information. Despite potential changes by Congress to protect Social Security, younger workers paying into the program through payroll taxes should still expect some return. Joe Elsasser, a certified financial planner and president of Covisum, said, “It’s reasonable to expect a benefit cut for younger people.

But to plan for it not to be there at all is a poor assumption.”

For assistance, you can call 1-800-772-1213 to schedule an appointment with the Social Security Administration or get help by phone. Remember to regularly check the Social Security Administration website or consult with a financial advisor, as benefits and rules may change over time.