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You Should Check Your Social Security Balance Regularly — Here’s Why
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Social Security is the main source of income for a majority of the elderly in the U.S. According to data from the Social Security Administration, nearly 9 out of 10 people age 65 and older receive Social Security benefits, representing 33% of the income of the elderly. But is it enough?
See: 5 Things Most Americans
Don’t Know About Social Security
Find: 17 Tips To Live Comfortably Off Just a Social Security
Check
Vanguard’s latest report says that most Americans aren’t prepared for retirement years, as reported by WFAA. The average retirement account balance was a little more than $106,000, but more than half (58%) had savings worth less than $40,000, and a third had less than $10,000 saved.
Related:
Next Year’s Social Security Checks Could Get Biggest COLA Bump in 13 Years
The Social Security Administration used to send regular updates regarding estimated future benefits, reports WFAA. The amount received is based on the 35 years in which an individual earned the most. While the administration is no longer sending updates, you can still get access to them. By creating a login with Social Security, you can sign in and it will tell you if you have worked enough to get a monthly benefit. WFAA also added that the site will reveal what your monthly payment may be, based on your history of earnings.
Read:
Most Americans Say They Won’t Wait Until 70 to Claim Social Security Benefits, According to Latest
Survey
Learn: When Social Security Runs Out: What the Program Will Look Like in 2035
WFAA also pointed out that this tool shows you how much less you would receive if you begin withdrawing early at 62 rather than waiting for the maximum amount at the age of 70. You can check the benefit you would receive by claiming Social Security benefits under your spouse, ex-spouse or deceased spouse, as well. If an ex-spouse is receiving higher benefits, you may receive additional benefits on their record, as previously reported by GOBankingRates.
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Last updated: July 16, 2021
This article originally appeared on GOBankingRates.com: You Should Check Your Social Security Balance Regularly — Here’s Why
Find out your estimated Social Security benefits.
Periodically checking your estimated Social Security benefits serves several purposes: It helps you plan for retirement and allows you to check for and correct errors.
The Social Security Administration (SSA) keeps a database of your earnings record and work credits, tracking both through your Social Security number. You can see this information on your Social Security Statement, which is available to everyone age 25 and over. The Social Security Statement also gives you an estimate of the benefits you'll receive at retirement age, which can play an important role in your financial planning.
How to Get a Copy of Your Social Security Statement
The SSA mails out Social Security Statements to follks age 25 and over (who are not already receiving Social Security benefits) before their birthdays during their 25, 30, 35, 40, 45, 50, 55, and 60 years. For those age 60 until retirement, the SSA will send out statements every year. You can also go online to get a copy of your statement or view it online. Go to www.ssa.gov/mystatement/ and open an account with Social Security to view your statement. (You can no longer request a printed statement either using Form SSA 7004.)
Check the Social Security Administration's Math
Your statement includes a record of the earnings on which you've paid taxes and an estimate of the benefits you will receive at various retirement ages: 62, 67, and 70. It is always wise for you to check the SSA's numbers. Don't be surprised if you uncover an error. Some government-watchers estimate that the SSA makes mistakes on at least 3% of the total official earnings records it keeps.
When you check your record, make sure that the Social Security number noted on your earnings statement is your own, and make sure the earned income amounts listed on the agency's records mesh with your own records of earnings as listed on your income tax forms or pay stubs.
How to Correct an Error on Your Social Security Statement
If you have evidence of your covered earnings in the year or years for which you think Social Security has made an error, call Social Security's helpline at 800-772-1213, Monday through Friday, from 7 a.m. to 7 p.m. This is the line that takes all kinds of Social Security questions, and it is often swamped, so be patient. It is best to call early in the morning or late in the afternoon, late in the week, or late in the month. Have all your documents handy when you speak with a representative.
If you would rather speak with someone in person, call your local Social Security office and make an appointment to see someone there, or drop into the office during regular business hours. If you drop in, be prepared to wait, perhaps as long as an hour or two, before you get to see a representative. Bring with you two copies of your benefits statement and the evidence that supports your claim of higher income. That way, you can leave one copy with the Social Security worker. Write down the name of the person with whom you speak so that you can reach the same person when you follow up.
The process to correct errors is slow. It may take several months to have the changes made in your record. After Social Security confirms that it has corrected your record, request another benefits statement to make sure the correct information made it to your file.
Using Your Benefit Estimates
As your statement will show, your Social Security retirement benefits will vary depending on when you claim them before or after your full retirement age (65-67, depending on the year you were born). The longer you wait to start receiving payments, the higher your benefit amount will be.
However, it's not always better to wait until your full retirement age to claim your Social Security benefits. If you need your Social Security benefits for living expenses, or you have a health condition that makes it unlikely that you will live past age 75 or so, you may be better off collecting your benefits sooner rather than later. You can use a calculator at the Social Security website to see which retirement age makes the most financial sense for you (go to //ssa.gov/planners/calculators.htm).
For comprehensive practical information about how and when to claim Social Security benefits, see Social Security, Medicare & Government Pensions, by Joseph Matthews with Dorothy Matthews Berman (Nolo).