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How To Get Social Security Retirement Estimate

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Ways To Estimate Your Social Security Benefits

How to Estimate your Social Security Benefits | Your Retirement Authority

Many people really have no idea how Social Security works or how their benefits are calculated. There is more than one way to calculate your monthly benefit amount. You have likely paid tens of thousands of dollars in Social Security taxes during your working years, so now it is time to determine how much of that money you will get back in retirement. If you are wondering, How much SS will I get, then here are three ways to calculate your Social Security retirement benefit.

Federal Insurance For Private Pensions

If your company runs into financial problems, you’re likely to still get your pension.

Social Security For The Disabled

People who are disabled, are dependents of retired or disabled workers, or are surviving spouses/children may also receive benefits. Note that this is supplementary information and that the Social Security Calculator only provides calculations for retirement benefits.

The SSA’s definition of disability refers to total disability, so partial or short-term disabilities are not qualified for benefits. Under the SSA’s rules, a person is disabled only if they meet all of the following conditions:

  • They cannot do work they did before
  • The SSA decides that they cannot adjust to other work because of their medical condition
  • The disability has lasted or is expected to last at least one year or to result in death

Benefits usually continue until beneficiaries are able to work again. Disability beneficiaries that reach full retirement age will have their benefits converted into retirement benefits, with the amount remaining the same. It is against the law to receive both disability and retirement benefits at the same time.

Social Security Disability Insurance

Supplemental Security Income

In some situations, it is possible to receive both SSDI and SSI. This usually happens when a qualified application for SSDI is granted low enough an SSDI benefit to make the applicant also eligible for SSI.

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What If I Continue Working In My 60s

Many people whose health allows them to continue working in their 60s and beyond find that staying in the workforce keeps them young and gives them a sense of purpose. If this sounds like something youâd like to do, know that working after claiming early benefits may affect the amount you receive from Social Security. Why? Because the Social Security Administration wants to spread out your earnings so you donât outlive them. If you claim Social Security benefits early and then continue working, youâll be subject to whatâs called the Retirement Earnings Test.

If youâre between age 62 and your full retirement age, and youâre claiming benefits, you need to know about the Earnings Test Exempt Amount, a threshold that changes yearly. For 2021, the Retirement Earnings Test Exempt Amount is $18,960/year . If youâre in this age group and claiming benefits, then every $2 you make above the Exempt Amount will reduce by $1 the Social Security benefits you’ll receive.

Contrary to popular belief, this money doesnât disappear. It gets credited back to you – with interest – in the form of higher future benefits. You may hear people grumbling about the Social Security âEarnings Taxâ, but itâs not really a tax. Itâs a deferment of your benefits designed to keep you from spending too much too soon. And after you hit your full retirement age, you can work to your heartâs content without any reduction in your benefits.

Best Social Security Calculators To Help You Decide When To Claim Revealed

When Is the Best Time to Take Social Security?
  • 7:40 ET, Aug 18 2021

HOUSEHOLDS should use a social security calculator to help decide when to claim the benefits for retirement.

When you claim social security is a key factor affecting how much you receive each month, so it’s important to consider beforehand.

The average monthly benefit in 2021 is $1,543, with the maximum set at $3,895.

To receive the full amount, you’ll need to work at least 35 years, boost your earnings and wait until your full retirement age to begin claiming.

If you were born in 1960 or later, your FRA is 67. For others, it’s 66 and a specific number of months.

You can start claiming benefits before your FRA at the age of 62, but your benefit amount will be reduced for each month that you claim early.

And if you claim as early as possible when you hit 62, your monthly benefit amount will be slashed by up to 30% for the rest of your life.

Meanwhile, if your FRA is 67, you’ll get a 24% boost in benefits every month if you wait to claim until you hit 70.

Recommended Reading: Basic Social Security Benefit

Do You Expect To Live A Long Life

Many people live longer than they expect.

Because Social Security provides guaranteed income for life, it’s especially valuable to you when you reach age 80 and beyond. Claiming benefits at your full Social Security benefit age or later could be a good way to secure your monthly income during your later years. Your benefit increases the longer you wait to claim, up to age 70, and is adjusted annually with the cost of living. If you live into your 80s but claim at age 62 instead of your full retirement age or later, your total lifetime benefits will be lower by thousands of dollars.Calculate your expected longevity.

Claiming at your full benefit age could still make sense for you.

We understand it’s difficult to make predictions. You may want to plan for the possibility that you may spend 20 or more years in retirement. On average, a woman reaching age 65 today will live to age 87, and a man will live to age 84. Waiting to claim as long as you can could still make sense for you if you are married, are the higher earner in the household, and want your surviving spouse to keep the highest monthly benefit after you die. Remember, you can claim at any point between age 62 and 70. Each additional month that you wait to claim gives you a permanent increase in your monthly benefit which becomes more valuable as you age.Calculate your longevity.

There’s a good chance that you’ll live into your 80s and beyond.

How Much Social Security Will I Get

Social Security benefits are based on your lifetime earnings. Your actual earnings are adjusted or indexed to account for changes in average wages since the year the earnings were received. Then, the SSA calculates your average indexed monthly earnings during the 35 years in which you earned the most. The SSA applies a formula to these earnings and arrive at your basic benefit, or primary insurance amount. This is how much you would receive at your full retirement age 65 or older, depending on your date of birth. You can increase your benefits by waiting until age 70 to begin taking benefits.

Read Also: What Are Social Security Earnings

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.

When To Apply For Benefits How Much Youll Get

You should regularly check the estimated Social Security benefit youâll eventually get

AARP, Updated April 19, 2021

All the information presented is for educational and resource purposes only. It is not intended to provide specific or investment advice. We don’t guarantee the accuracy of the tool and suggest that you consult with your advisor regarding your individual situation.

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Can I Use The Calculator To Figure Out Social Security Disability Insurance And Supplemental Security Income

No. SSDI is aimed at people who cant work because they have a medical condition expected to last a year or more or result in death. Your SSDI benefits last only as long as you suffer from a significant medical impairment while not earning significant other income.

SSI is a separate program for people with little or no income or assets who are 65 or older, as well as for those of any age, including children, who are blind or who have disabilities. The maximum monthly SSI payment for 2021 is $794 for a single person and $1,191 for a couple. But some states add to that payment, and you may receive less than the maximum if you or your family has other income. Get more information about SSDI and SSI from the Social Security Administration.

Also of Interest

Calculate Your Average Indexed Monthly Earnings

Once you have your inflation-adjusted 35 years, youll divide that amount by 420. Thats the number of months in a 35-year period, so it gives you a monthly inflation-adjusted amount. That amount will be rounded down to the nearest lower dollar amount. If you retired today, that would be the amount the SSA would use to determine your monthly Social Security benefit.

If you were taking retirement in 2021, SSA would take your inflation-adjusted, indexed wages for every year prior to 2019. Any wages you earned after 2019 wouldnt be indexed. Assuming those two years were among your 35 highest-earning years, the amount would be added to your total before being divided by 420.

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Fact #: Social Security Benefits Are Modest

Social Security benefits are much more modest than many people realize the average Social Security retirement benefit in June 2020 was about $1,514 a month, or about $18,170 a year. For someone who worked all of their adult life at average earnings and retires at age 65 in 2020, Social Security benefits replace about 40 percent of past earnings. This replacement rate will slip to about 35 percent for a medium earner retiring at 65 in the future, chiefly because the full retirement age, which has already risen to 66, and is gradually climbing to 67 over the 2017-2022 period.

The average Social Security retirement benefit in June 2020 was $1,514 a month, or about $18,170 a year.

Moreover, most retirees enroll in Medicares Supplementary Medical Insurance and have Part B premiums deducted from their Social Security checks. As health care costs continue to outpace general inflation, those premiums will take a bigger bite out of their checks.

Social Security benefits are modest by international standards, too. The United States ranks just outside the bottom third of developed countries in the percentage of an average workers earnings replaced by the public pension system.

Social Security lifted 1.5 million children out of poverty in 2018, as the chart shows.

Social Security Isnt Just For Retirement

CalcXML Retirement Calculator

      First created in 1935 as part of then-President Franklin D. Roosevelts New Deal, the Social Security Administration originally called the Social Security Boardsprang out of a need to assist the millions of retired or elderly Americans who had lost everything in the Great Depression. After the program was launched, it was expanded to help children, widows, and disabled people who might otherwise become destitute.

      Today, the SSA, an independent agency of the federal government, still oversees those social insurance programs, each with specific requirements that must be met to be eligible to collect benefits.

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      How Much You Will Get From Social Security

      It can be difficult to predict how much you will receive from Social Security, especially if you are more than a few years away from retirement. But familiarizing yourself with how your benefit will be calculated can help you budget for retirement and even boost your future Social Security payments.

      Here’s how to estimate how much you will get from Social Security in retirement:

      — Consider the average payment.

      — Calculate your Social Security payment.

      — Factor in your retirement age.

      — Subtract Medicare premiums.

      — Create a My Social Security account.

      Read on to find out how your Social Security payments are determined.

      Consider the Average Social Security Payment

      The average Social Security benefit was $1,543 per month in January 2021. The maximum possible Social Security benefit for someone who retires at full retirement age is $3,148 in 2021. However, a worker would need to earn the maximum taxable amount, currently $142,800 for 2021, over a 35-year career to get this Social Security payment.

      How to Calculate Your Social Security Payment

      Social Security payments are calculated using the 35 highest-earning years of your career and are adjusted for inflation. If you work for more than 35 years, your lowest-earning years are dropped from the calculation, which results in a higher payment. Those who don’t work for 35 years have zeros averaged into the Social Security calculation and get smaller payments.

      Factor in Your Social Security Retirement Age

      Uses Actual Earnings Record

      The retirement estimator by the Social Security Administration uses your actual social security work record to provide an estimate.

      You can check how much you’re expected to receive for three ages – age 62, your FRA and age 70.

      To use it, you’ll have to enter some personal information, including your social security number.

      Keep in mind that you can only use it if you have enough credits to qualify for benefits, but you haven’t yet begun your social security payments.

      Also Check: Request For Deceased Individual’s Social Security Record

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      When Can You Collect Social Security

      How to Calculate Your Social Security Benefits

      Many people still think of age 65 as the age to retire, but that has changed. To collect full benefits, you cannot apply for Social Security until you are:

      • 66, if born in the 19431954 range
      • 66 and 2 months, if born in 1955
      • 66 and 4 months, if born in 1956
      • 66 and 6 months, if born in 1957
      • 66 and 8 months, if born in 1958
      • 66 and 10 months, if born in 1959
      • 67, if born in 1960 or later

      If you delay retirement to age 70, then you will receive increased Social Security benefits. The percentage will depend on the year you were born, with a maximum 8% increase as the max. You can also choose to start collecting Social Security benefits as early as age 62, but your benefits will be reduced.

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      Social Security For Spouses And Survivors

      Spousal benefits are available to current or widowed spouses aged 62 or older. Applications for spousal benefits are not valid until the other spouse files for their own benefits. It is possible for a non-working spouse to be eligible for a spousal benefit based on their working spouse’s benefit. Based on the working spouse’s age of retirement, the spousal benefit can be up to half of the working spouse’s benefit.

      A widow or widower can collect a survivor benefit as early as age 60, given that the marriage lasted more than nine months. This requirement is waived if the widow or widower has a child under the age of 16. In the case where both individuals in a married couple are receiving SS benefits, and one dies, the widow or widower can continue receiving their own benefit or their spouse’s, but not both. It is also possible for a widow or widower to switch benefits in retirement. For instance, if the deceased spouse was scheduled to receive larger benefit amounts at age 70, the widow or widower can first file for their own benefits, then claim their former spouse’s benefits later in order to maximize payments.

      A person who is divorced, who was married for more than 10 years and has not remarried, can receive benefits based on their ex-spouse’s work history as long as the divorced person meets all of the following conditions:

      The ex-spouse’s benefits can also be claimed even if the ex-spouse has not filed for their own benefits, as long as both parties are above age 62.

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