Social Security?
How much money money will you receive from your social security benefits? Last summer, we wrote about how the Social Security system was breaking down rapidly. You may be wondering, if we think the system is breaking down, why would we write about it in our blog now? There’s little question that the Social Security Program is in trouble, but there are solutions. Unfortunately, for many Americans, particularly those who have worked hard and lived responsibly, the most likely solution will preclude them from receiving benefits they deserve.
Much of the focus for suggested Social Security fixes in Washington have centered around “means testing”. Essentially, at some point, the government will draw an arbitrary line based on your personal assets and savings, giving those below that threshold access to Social Security funds. It should also come as no surprise that they are more than a little interested in “helping” with your 401k as well. For the time being however, Americans are still forced to contribute to Social Security and still have some claim on that forced contribution.
How To Check your Social Security Benefits
Not so long ago, the Social Security Administration would send annual statements in the mail. You now have the ability to access your statements online. The system is simple and easy to use. To see your balance and earnings:
- Log into “my Social Security” (https://www.ssa.gov/myaccount/)
- Click on the button “sign in or create account”. You must first,
- Use a valid E-mail address,
- Know your Social Security number,
- Have a U.S. mailing address, and
- Be at least 18 years of age.
- Click “Create an Account” at the bottom of the screen (and agree to the terms of service).
- You will also have to enter a series of verification information. A good tip is to use EXACTLY the same address, spelling, etc… as you used on your last tax filing (As a cautionary note, in the event that you enter something incorrectly more than three times, you will have to endure a 55 minute period on hold to speak with a friendly government employee)
After gaining access, you will see your complete earnings history and the total Social Security and Medicare taxes you have paid over your working career are listed in the online statement. You can also compare your expected retirement benefits at various ages. The online statements include much more information than the SSA’s older tool, which merely provided an estimate for workers earning at least 40 quarters of work.
Why To Check Your Social Security Benefits
We now know how to access your benefit information, but other than planning purposes, why should I take the time to do this? Social Security benefits are based on your lifetime earnings. If earnings are reported to the Social Security Administration inaccurately or have been mis-recorded, SSA is NOT required to correct any error in an earnings statement that is more than three years old. This places the burden on you to check it every two or three years and ensure the data they’ve recorded is correct.
Don’t be surprised if you uncover an error. Some watchdog groups estimate that the SSA makes mistakes on at least 5% of the total official earnings records it keeps. It’s also important to check your earnings report if you change your name in the even of marriage, or placement in a witness protection program… (hey, you never know…) The SSA has historically been known to lose earnings data for women who marry and keep their maiden names.
In The Event Of An Error
If you have discovered an error and have evidence of your actual earnings in the year for which you noted their error, call the SSA. The helpline number is 800-772-1213, (Monday through Friday, from 7 a.m. to 7 p.m.) If you prefer to speak with someone in person, make the trip to your local Social Security office. Be prepared to practice patience and have all your documents handy when you speak with a representative.