Unless you keep your annual statement or have a photographic memory, you probably have little to no idea what your estimated Social Security benefits will be when you qualify to receive them. While many, particularly younger folks, believe the fund will be bled dry by the time they reach retirement age, it's unlikely that benefits will be eliminated, but will probably either be reduced or pushed back. Either way, for retirement planning purposes, it's important to know your estimated benefits.
Thanks to the Social Security's benefits estimator, you can quickly and easily obtain your estimated benefit amounts. To do this, the following is a step-by-step guide to help you find out what all of that hard earned money is going to provide you in your later years. To begin, go to the Social Security website's estimator page which is displayed below.
Step 1: Click the rather large button labeled 'Estimate Your Retirement Benefits' on the right side of the page.
Step 2: Complete the short input form and click 'Continue'. This will bring up a confirmation page where you will once again need to click 'Continue'.
Step 3: Enter your current annual gross income and click 'Create Estimate'.
Step 4: Review your benefits estimate and record the numbers to use in your retirement planning.
The entire process should take no more than about five minutes to complete, and your estimated benefits will vary based on your current income. In the end, what matters is the final output so you can use the information to create your retirement plan.
As for whether or not you'll receive benefits, it's hard to believe that Social Security would go away since the most active voting group are either receiving benefits or will receive them soon. However, having 'normal' retirement age pushed back is to be expected and a reduction in benefits for younger workers isn't out of the question. At least annually, it's a good idea to check your benefits and see if there have been changes. If your benefits have changed, be sure to update your retirement plan.
