How are you guys doing, my name is Josh Crowe, and today I’m going to show you how you can accurately estimate your social security benefits now there are three steps I’m gonna walk you through.
The first step is to go to the Social Security Administration website, the second step is to enter some your personal information, and finally, I’ll teach you how to analyze the three options the Social Security Administration give you.
Alright, so we’re gonna go ahead and jump into the first step and that’s to open up a web browser, type in ssa.gov, and hit enter. Now, from the Social Security Administration website scroll down about halfway, and look for the retirement estimator tool, it’s a blue button with a calculator, click that and you’ll be redirected to a page with a large blue button that states estimate your retirement benefits.
You want to click on that button, and then you’re going to be asked to enter your information. So first name, last name, your mother’s maiden name, your social security number, date of birth, and then place of birth, and that’s by state, and then when you scroll to the bottom, you’ll see terms of services, you’ll need to read those and hit I agree to the terms of services, and press submit.
Now this next screen is what makes the estimator so accurate when compared to what it is the statements you’ll get in the mail or via email, and that’s because it’s based on your most recent earned income, and not on what the Social Security receives from the IRS which is typically 2 or 3 years behind.
So I’m going to go ahead and enter in a number here and hit next. All right, so jumping to the final screen – the most important – there are three rows you see here. Each one denotes the monthly benefit you’ll receive from Social Security dependent upon the age you would like to begin your benefits.
In this bottom row here you see age 62, we’re going to start there. It jumps to 67 here at the top, it’s a bit out of order, and then 70. So we’ll go in that order. At age 62 if you’re earning an average annual income of $60,000 your monthly benefit will be one thousand three hundred and ninety dollars per month.
Now the Social Security Administration has a database of your working history, and that comes from that previous screen where you entered you or personal information, so this is fairly accurate.
Jumping to the top, if you wait a little bit longer the Social Security Administration will pay you more. So at full retirement they’ll give you one hundred percent of your benefit. Earning 60,000 per year on average, your benefit will be roughly two thousand one hundred and nineteen dollars per month.
Jumping down to age seventy, the Social Security Administration will give you an 8% increase every year from age 67 to age 70, so again, taking at 70 earning $60,000 per year. We can see here, that our monthly benefit is two thousand six hundred and forty nine dollars, a little over double what we receive for weighting that additional eight years as opposed to taking it early at age 62.