Retirement Prep 101: Reviewing Your Social Security Benefits

Many people diligently contribute to Social Security throughout their careers, but as retirement approaches, reviewing your estimated benefits is often overlooked. Fortunately, the Social Security Administration (SSA) makes it simple to stay informed. Instead of waiting for mailed statements, you can now quickly access your estimated benefits online by creating a “my Social Security” account at http://www.ssa.gov/myaccount/. This secure platform requires basic verification, including a government-issued ID, Social Security number, U.S. mailing address, valid email, and proof of age. Once your account is set up, you can review your Social Security statements anytime, at your convenience.

The information in your statements is quite detailed. It shows:

• The benefits you’re eligible for upon retirement or becoming disabled.
• Your earning history, dating back to your first job.
• The amount of Social Security and Medicare taxes you’ve paid.
• The range of benefits you can expect which depends on when you claim (between age 62 and 70).
• Disability insurance benefits (in case you need to file a claim).
• Survivor benefits for your spouse and dependent children (if you pass away while receiving benefits).

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The Social Security Administration calculates your benefits based on your highest 35 years of earnings. The estimated benefits on your statement assume you’ll continue earning at your current level. If your future earnings are higher, your benefit will increase, and vice versa.

What If You Find Errors?

If there are errors or missing information in your earnings record, you can take steps to correct it. You’ll need to provide proof of your earnings through W-2 forms or pay stubs. If you don’t have these documents, you can contact the SSA with details about your employment history (employer, dates of work, estimated earnings). Correcting errors in your earnings record can be time consuming, so it’s important to be diligent and stay on top of your Social Security statements to avoid receiving incorrect benefits in retirement.

Social Security Benefits and Budgeting

Understanding your Social Security benefits is crucial for retirement planning. Knowing how much you’ll receive from Social Security allows you to create an accurate and flexible budget. For example, if your Social Security benefit is $3,200 per month, but you need $6,500 to cover expenses, you’ll need to find ways to generate an additional $3,300 to bridge the gap. This could involve drawing from an investment portfolio or exploring other sources of income. Additionally, knowing your disability benefits is important if you become disabled and need to support yourself and your family.

At Savant, we’re committed to helping families pursue their ideal future. Having adequate knowledge of retirement planning is essential, and we’re happy to help you review your Social Security statements and your financial goals. Contact a Savant team member today.

Jonathon D. Merickel Portfolio Advisor CFP®, MBA

Jonathon has been involved in the financial services industry since 2002. He earned a bachelor of science degree from Syracuse University and an MBA from Le Moyne College.