Aug 15 2008
Social Security Benefits Estimator
New Social Security Benefits Estimator tool
The Social Security Administration (SSA) recently announced the development of an improved ONLINE Social Security Benefits ESTIMATOR. This new estimator enables us to log on to a “secure” SSA site, enter our social security number, select a proposed age at which to stop working, and estimate our future earnings. The calculator will produce estimated benefit amounts for early retirement at age 62 and at full retirement age of 66, (or whatever age applies to your age group). The site reminds us that this is only an estimate. One difference that I see is that the calculator asks for your income from last year and adds it to your total earnings. Of course, the closer one is to retirement age, the more accurate the estimate. If you have a very good estimate of future income, that will also help the benefits calculator come up with something akin to what you may actually receive. It doesn’t make any adjustment for the cost of living increases between now and the retirement age, nor does it estimate what Medicare premiums may be deducted at a future time.
You can’t use the estimator if you are already drawing social security benefits under your own social security number, or are a Medicare beneficiary.
Overall, I would say this tool offers a very limited improvement over the benefits estimate that is mailed out to us each year about three months prior to our birthday.
Incidentally, the Social Security Administration also announced that a new system will be online in October, 2008 which will allow us to apply for our initial social security benefits ONLINE, without the currently required visit to a Social Security Office to present a birth certificate as proof of age. If all the information we provide ONLINE at the time of our application for benefits MATCHES the information the SSA has on file, then benefits can begin without an “in-person” visit.
You can click on the SSA logo above or paste this link into your browser to visit the SSA Benefits Estimator Page http://www.socialsecurity.gov/estimator/
