5 Things To Review in Your Social Security Statement as You Near Your 60s

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If you’re approaching your 60s, you can expect to hear from the Social Security Administration. The SSA mails Social Security statements to pre-retirees each year letting you know what your monthly payment might be when you file for benefits, based on your earnings record and when you decide to claim benefits.

If you haven’t received a statement or misplaced the one you did receive, you can view it online by opening a my Social Security account. For workers 60 and older who don’t have a my Social Security account, the SSA mails Social Security statements three months prior to your birthday, the agency said on its website.

The SSA has redesigned the statement to make it easier for users to find key information. The new statement features a bar graph displaying your personalized retirement benefit estimates at nine different ages, depending on when you want benefits to start. It also includes your earnings history and information on how to report an error if you find one. The agency encourages you to review your statement at least once a year to stay abreast of any changes that could impact your benefits.

As MarketWatch reported, if you hire a financial planner you’ll likely be asked to bring your latest Social Security statement to your next meeting because it plays an important role in retirement planning. An advisor can also help you navigate the statement to clear up potential confusion.

“It’s the first place we look as we assess your estimated Social Security benefits,” Billy Voyles, a Minnesota-based adviser, told MarketWatch. “Some people see these numbers and think of them as [guaranteed] payouts. But it’s important to know they’re only estimates that assume you’ll continue to work.”

If you’re nearing your 60s, you should set up an account with the SSA and keep your eyes out for a Social Security statement. Even if you don’t plan to retire or collect benefits for another decade or more, it’s a good idea to review your statement. Here are five things to keep an eye on:

1. Earnings record: You should see a year-by-year earnings record on your statement that details how much income you earned each year you worked. Double-check that the information looks accurate.
2. Retirement benefits: The statement will also include personalized monthly retirement benefit estimates that let you know what your monthly payment will be based on your earnings record to date and the age you decide to sign up for Social Security. Review this to see how much you can expect at certain ages. Again, this is only an estimate. The actual amount might differ once you claim benefits.
3. Disability benefits: This will show you whether you have earned enough credits to qualify for disability, if applicable.
4. Survivor benefits: The statement will also let you know if have earned enough credits for your eligible family members to receive survivor benefits. Members of your family who might qualify for monthly benefits in the event of your death include your spouse and any children who are still minors.
5. Low earnings years: If you had a dip in earnings during your career due to a layoff, health issue or just leaving the workforce for a few years to raise kids or care for a family member, you should review those years to see how much they impact your Social Security benefits. A smart strategy is to work long enough to offset your low earning years so you can guarantee a bigger Social Security payment. Your benefit amount is based on your highest 35 years of earnings. If you have fewer than 35 years of earnings, years without work count as zero and could reduce your benefit amount, according to the SSA.

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