If you're contemplating retirement or are already receiving Social Security benefits, you're in good company! It is estimated that approximately 65 million Americans receive Social Security benefits each year.
Ubiquity Retirement + Savings senior vice president of human resources, brand, and culture Andrew Meadows says that understanding "...how Social Security fits into your financial health is a powerful way to be prepared."
Is Social Security going to be enough to cover all of your financial needs in retirement? "One of the biggest sticker shocks when it comes to Social Security is that it is unlikely to be enough to cover your living expenses once you reach retirement."
In order to understand how Social Security will fit into your overall financial goals and to estimate your benefits, you can use a number of different methods. We'll take a closer look at this further down.
What Amount of Social Security Benefits Will I Receive
Create a "My Social Security Account" for yourself.
My Social Security Account, which is provided free of charge by the Social Security Administration, is a simple, safe, and secure way to view and manage your benefits. You can set up a my Social Security account even if you are not yet eligible for benefits (anyone over the age of 18 can do so), and you will have access to personalized estimates, benefit calculators, and customer support. Aside from that, registering early helps to prevent spammers from creating accounts using your Social Security number.
Following our step-by-step guide on how to set up a my Social Security account will help you be better prepared for your Social Security benefits.
How to Calculate Your Social Security Benefits
Knowledge equals financial power in every sense! If you want to avoid being surprised by the amount of Social Security you'll receive, make sure you understand how it is calculated, how much money you'll receive each month, and the factors that influence your payment.
The Social Security Administration (SSA) provides free tools to help you estimate how much you will receive in benefits. You can also speak with a representative from the Social Security Administration by calling the administration toll-free at 800-772-1213. In the event that you are deaf or have hearing loss, you can contact them at their toll-free TTY number, which is 800-325-0778.
Recognize Your Social Security Benefit Alternatives
Neal Stern, CPA, who is also a member of the National CPA Financial Literacy Commission of the American Institute of CPAs, spoke about some of the aspects of Social Security that are frequently overlooked.
According to the Social Security Administration, "there are some special considerations for married couples, widows or widowers, and former spouses that can have a significant impact on their social security benefits."
There are a variety of different Social Security benefits available, and it's important to understand which ones you and your family may be eligible for in order to maximize your benefits. Benefit options include the following:
Social Security benefits for a spouse
Spouse who has been divorced Benefits under the Social Security system
Survivors' benefits under Social Security
Benefits under the Social Security Disability Insurance (SSDI) program
Direct deposit ensures the safety of your Social Security benefits.
It's a good idea to avoid going to the bank if you're already receiving Social Security benefits. Now is a great time to set up direct deposit of your Social Security checks into your bank account, rather than having them mailed to you. In lieu of anxiously anticipating the arrival of your check in the mail, an electronic funds transfer is both quicker and more convenient. Direct deposit is also more secure because there is no risk of your check being lost or stolen when you use this method.
It is simple to arrange for your funds to be transferred directly to your bank account. Simply follow the steps in our step-by-step guide to set up your Social Security direct deposit account.
