How Much Money Will I Get From Social Security Benefits?
Wouldn’t it be great if you could determine what kind of social security benefits that you were going to get when you retired? Well if you said yes, you wouldn’t be alone. So the Social Security Administration now has a Retirement Estimator. Now the SSA does give a disclaimer that the numbers you get will just be estimates because social security benefits change often, inflation and some other variables that may change what you actually do receive. But still, it’s nice to have an idea.
You can use the Retirement Estimator if:
- You are not currently receiving benefits on your own Social Security record;
- You have enough Social Security credits at this time to qualify for benefits and
- You are not eligible for a Pension Based on Work Not Covered By Social Security.
Eileen Ambrose at the Baltimore Sun wrote up a column about this estimator tool. She gives a preview on what kind of information you have to give:
You will need to plug in your Social Security number and mother’s maiden name. The agency says the site is secure. And when you print out your information, it won’t include these identifying details.
The calculator will ask when you plan to stop working and your average future earnings. It combines these with your earnings history so far.
With the click of the mouse, you can see what your monthly benefit will likely be at 62 - the earliest year to receive benefits - and at other ages. You can, for instance, calculate the difference in benefits by working one more year, something the annual paper estimates don’t tell you. In my case, retiring at 63 instead of 62 would mean an extra $100 a month.
Read: New tool for those debating retiring, Baltimore Sun
Pretty useful tool, I think. So definitely worth a try and helpful for financial planning.
Photo by paul goyette
Tags: benefits, retirement, social security, when to retire