Social Security: Estimating Your Benefits At Retirement
Are you close to retirement and want to know what your social security benefits will be?
You can now find out easily with a new Retirement Benefit Estimator that was unveiled this summer on the Social Security Administration web site. It replaces the old calculator that required users to type in their earnings history, which was a problem, as many people didn’t have that information readily available.
The new Retirement Benefit Estimator accesses the Social Security database for more accurate earnings information. It’s much easier to use: with just a few clicks and a bit of personal information, you can get an estimate of your benefits in less than five minutes.
Annual benefit estimates are currently mailed to workers once a year—they are based on prior earnings and assume that your salary will remain the same until retirement. With the online calculator, you can access that information 24/7. It also gives future retirees a more accurate picture of their benefits because they can factor in a higher estimate of upcoming earnings and different possibilities for retirement ages.
The calculator does have its limitations. Since it’s difficult for people to predict future earnings, there is built-in uncertainty in the estimates. (Estimates are more accurate the closer you are to retirement.) Keep in mind also that Social Security benefits are likely to be curbed in the coming years as lawmakers try to figure out how to strengthen the system and prepare it for the retirement of the baby boomers.
That being said, if you’re curious to find out how much you’ll be receiving if you retire at 62 versus holding off until 68 or 70, this is a great tool to use.
Social Security Retirement Estimator
