Check Your Social Security Statement
Do you know if you are eligible for social security benefits? There is an easy way to find out. I encourage you to create your "my Social Security" account on www.ssa.gov to learn about your benefits, view your earnings record, see estimates, and much more.
Why do Social Security Benefits Matter?
Social Security Benefits could mean different things to different people. Some people use projected benefits to help with planning for retirement. You may choose not to use them in your projections, but it's still a good idea to know your status. You also learn about other benefits you may qualify for. Remember OASDI - old-age, survivors, and disability insurance? All of this information can be found on www.ssa.gov.
What's in your Social Security Statement?
There's a lot of information in your statement about your earnings, taxes paid, and estimates for future benefits. Below is a snapshot of the different information that you will find on your statement and a quick explanation.
- Retirement Benefits - to qualify for benefits most people need 40 credits earned over their working lifetime, the first box will let you know if you qualify, your full retirement age, and the earliest you can begin taking benefits.
- Disability Benefits - find out if you qualify and the amount you're likely to receive if you were to become disabled.
- Survivors Benefits - tells you if you qualify and the amount eligible family members would receive if you passed away.
- Personalized Monthly Retirement Benefit Estimates - estimates of the monthly amount you would receive based on current information depending on the age you start.
- Medicare - tells you if you have enough credits to qualify for Medicare and additional information.
- Earnings Record - a concise record of your total social security earnings for each year you worked.
- Taxes Paid - the total social security and Medicare taxes you have paid and the amount your employers have paid on your behalf.
- Earnings Not Covered by Social Security - provides info about what may not be covered.
- Important Things to Know About Your Social Security Benefits - provides good to know info about benefits.
How Often Should I Check My Statement?
It is recommended that you check your statement at least once a year. You can find the information described above and also notify the Social Security Administration if there are errors.
Do I need to Save for Retirement?
Keep in mind that social security isn't meant to be your only source of income at retirement. The percentage of your pre-retirement earnings that is replaced by social security varies from person to person, but the amount may be less than you think. This is why it's a good idea to know what you're up against to help you plan for your future.
What else can you do on the Social Security Administration's website?
The website has lots of great information, articles, and resources to get you started. Once you create an account you can see estimates of amounts you'd receive at different ages and different annual salaries or see what benefits would be with or without a spouse. Once you're ready to begin receiving benefits, you can start your application online. You can also learn about other benefits you qualify for and begin a disability benefits application online if needed. You'll find information about survivor benefits. Additionally, you can find information about when you qualify for Medicare Part A and B and what is needed to apply. If you're married or have been married, you can calculate a spouse's or former spouse's benefit based on your earnings record.
You must go through a verification process to set your account securely, but once it's created, you can begin logging in to view the details about your potential benefits. Now the fun begins! 😉
✨ Managing Money Like a Boss is about planning and preparation. Knowing about your social security benefits is just one way to help plan for your future. The more you know, the better equipped you are to plan with purpose! ✨