What is a Social Security Statement? And why you should check it out
What is a Social Security Statement?  And why you should check it out

What is a Social Security Statement? And why you should check it out

The Social Security Administration no longer sends paper statements on social security to most people under the age of 60. Younger workers who …

The social services no longer send paper Social Security statements to most people under the age of 60. Younger workers who want to check their earnings history or paid taxes must set up a My Social Security account to get their account statements online.

Here’s why you should see your Social Security benefit statement:

– Find out how much you get when you retire.

– See what happens if you become disabled.

– Notice how much your family will receive if you die.

– Check your earnings.

– Confirm your contributions to Social Security and Medicare.

[Read: Why You Should Create a My Social Security Account.]

What is a Social Security Statement?

Your social security statement gives you a personal estimate of how much you will receive from social security if you retire or become disabled, and how much your family members may be entitled to if you die. The statement also shows your earnings that will be used to determine your social security payments, which you can review and correct If necessary. The Social Security Administration redesigned social security statements to include more information by 2021.

How to get your social security statement

You must create a My Social Security account at ssa.gov/myaccount to see your social security statement. “Create your access like any other financial site, and check your social security data whenever you want,” says Andy Landis, author of “Social Security: The Inside Story.”

You must verify your identity by answering privacy questions to create an online account. Account holders must enter a username and password as well as a one-time security code that is sent to their phone or email address each time they log in.

How much do you get from social security when you retire

Most social security statements include an estimate of how much you will receive if you sign up for social security at nine different retirement ages between 62 and 70 years retirement age when you are eligible for full retirement benefit, 66 are for most baby boomers and 67 for everyone born in 1960 or later. Payments are reduced if you apply for unemployment benefits before your full retirement age and increase if you choose a later start date.

“The statement clearly shows that the longer you wait to claim benefits, the more you get each month,” says Jonathan Peterson, author of “Social Security For Dummies.” “Over time, the difference can be many thousands of dollars, so it makes good sense to look at the projections for different retirement ages and think about what they mean to you.”

For example, a worker entitled to $ 1,680 per month at age 67 will only receive $ 1,159 per month at age 62, but his benefit will increase to $ 2,094 each month if he defers enrollment until age 70. age. However, it is important to note that these benefit estimates assume that the Social Security Act remains unchanged and that you will continue to earn your current salary, both of which may change in the future. The statement will also tell you if you have not yet worked long enough to qualify for benefits.

[READ: How Much You Will Get From Social Security.]

What happens if you become disabled

Social benefits are not just for retirees. Your social security statement will also tell you the amount of benefit you will be entitled to if you be disabled in the following year.

How much will your family members receive if you die

Social security pays out benefits for families when a breadwinner dies. Your dependent children and a spouse caring for these children are likely to both be entitled to payments upon your death, and the amount they will receive is on your statement. Your spouse can also receive retirement benefits based on your work journal even if you die before retirement. In addition, a spouse or a minor child may be entitled to a lump-sum benefit in the event of death when you pass away.

Check your earnings

Your Social Security statement typically shows each year you worked and how much you earned. “Sometimes your income is not properly reported to Social Security,” says Brian Vosberg, a certified financial planner and author of “The Complete Retiree’s Guide to Social Security.” “Checking annually will help guarantee accuracy.” The 35 years in which you have the highest earnings are used to calculate your pension payment.

[Read: Social Security Changes Coming in 2022]

Confirm your Social Security and Medicare contributions

Below your earnings chart, the statement shows the total amount you have paid into Social Security and Medicare throughout your career. It is a good idea to double check these amounts to ensure that you get credit for your contributions. The Social Security Administration recommends reviewing accuracy statements once a year.

Workers are required to pay 6.2% of their social security pay up to $ 147,000 and 1.45% of all earnings to Medicare by 2022, which employers match. Self-employed workers pay 12.4% of their earnings to Social Security and 2.9% to Medicare. Those who earn more than $ 200,000 ($ 250,000 for couples) pay an additional 0.9% in Medicare taxes.

More from US News

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What is a Social Security Statement? And why you should check it out originally appeared on usnews.com

Update 04/19/22: This story was published at an earlier time and has been updated with new information.

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