Are You Getting the Most Out of Your Social Security Statement
Category: Financial and taxes in retirement
February 16, 2016 — Even if you are not retired yet you have probably received several statements from the Social Security Agency over the years. That is because the Agency mails Statements to workers at ages 25, 30, 35, 40, 45, 50, 55, 60 and older. They go out three months prior to their birthday (but not if they receive Social Security benefits or have a my Social Security account).
The statement contains an amazing amount of helpful information. Unfortunately, that info is often ignored or misunderstood. In fact one survey found
Comments on "Are You Getting the Most Out of Your Social Security Statement"
Louise says:
I don't see how anyone would have trouble understanding the statement. It is concise and give ages and amounts. Maybe those who don't know how much they will get are not ready to retire and are just not paying attention.
Billy says:
The statement assumes you will receive your last annual salary till retirement, rarely happens, retirees who haven't filed and don't work have to enter '0' for wages for future years benefits amounts.
Elaine C. says:
I remember the first time I saw my SS statement. It was a shock to see how little SS I would get at age 66, so I educated myself and got into a higher paying job to pull up the amount. It worked. I'll turn 66 in a handful of months, and will continue to work, although I am definitely going to work at a less stressful job and be in a more friendly living environment for myself as a senior. My days of being a solo rancher and working a 55-hour plus a week job are over. I am downsizing to a sustainable lifestyle.
ella says:
Elaine C., you go girl!
OldNassau says:
To complexify your decision about beginning SocSec benefits, consider
(1) if you are married, several options as to when you and your spouse begin, delay, or suspend benefits
(2) how will benefits change your income tax status - local(some cities), state (not, some, all benefits taxed depending on income), federal (ditto).
(3) Medicare premiums increase with total (not just taxable) income.
Terrie Douglas says:
When they calculate your benefit it is calculated based on the number of years (37?) worked salary, period. So doesn't matter if your salary is 0 or way less, as long as you have salary. They do actually take the highest salaried years, so again, it doesn't matter if you don't carry that high salary until retirement. Of course it will matter if you work for many many years at lower salaries.
I was concerned about that when I got laid off last year, but after reading how the benefit is calculated I am no longer concerned about getting a lesser benefit with greatly reduced earnings.
Dick L says:
Terrie, this is a very timely and concise report! I would only add that it is the top 35 years of your salaried years.