Social Security retirement payments are an essential supplement to retirement savings, investments, and pensions. However, if you’re considering these benefits as your main retirement income, maximizing your monthly checks becomes critical.
One way to boost your future payments is by delaying your benefits until age 70, allowing you to earn delayed credits, which increases your payout by 24%.
But how can you estimate your future Social Security benefits now? Fortunately, there’s a free online tool that can help you get an accurate picture.
Estimate
The Social Security Administration (SSA) encourages workers nearing retirement age to use its online tool to get an estimate of their benefits. You can access this estimator at the SSA website.
Using this tool, which requires logging into your “my Social Security” account, lets you view estimates for both retirement and disability benefits if you meet eligibility requirements.
This tool allows you to input various retirement ages and projected incomes to see how these factors affect your benefits.
To get your estimate:
- Visit the SSA’s benefit estimator page.
- Log in to your “my Social Security” account (if you haven’t created an account, you can register quickly).
- Follow the prompts to view an estimate based on your projected retirement age and income.
This tool is especially helpful as it shows estimates for different retirement ages, giving you insight into how much you could receive monthly at each milestone.
Additionally, this tool includes an estimate for Social Security Disability Insurance (SSDI) benefits for those with a qualifying disability and sufficient work credits.
Statement
Another way to view your future benefits is by downloading your Social Security Statement, which provides a comprehensive overview of your benefits. This document includes:
- Monthly benefit estimates based on different retirement ages (62–70).
- Projected payments for disability and survivor benefits.
- A breakdown of your earnings record, which is used to calculate your benefits.
Having access to this information allows you to compare estimated benefits at different ages, helping you make an informed decision about the best time to start collecting.
To download your statement:
- Log in to your “my Social Security” account on the SSA website.
- Select the option to view or download your Social Security Statement.
- Review the detailed report of your benefits and earnings record.
This statement serves as a valuable planning tool, allowing you to weigh the advantages of waiting to collect benefits against taking them early. The flexibility of reviewing your statement at any time means you can adjust your plans as you approach retirement age.
Retirement
While Social Security benefits provide essential financial support, consider them one piece of your retirement strategy. Combining Social Security with other income sources, such as personal savings, pensions, or investments, can help you create a more robust financial plan.
Delaying benefits, even for a few years, can increase your overall retirement income substantially, allowing for a more comfortable retirement.
If Social Security is expected to be your primary source of income, understanding these tools can help maximize your benefits, giving you peace of mind as you approach retirement.
