It is a complicated process to plan retirement and one has to simplify his/her expectations from the earnings of social security. It will be beneficial to ask for the statement of social security from the concerned department to know about your available payments in the system and the benefits that you may receive after retirement. The social security administration pays some beneficiaries every month after considering different factors. The lifetime earnings and contributions of the payroll in the funds are considered to determine the total contribution to the retirement benefits. The age of the person also matters to receive the monthly benefits.
Tips to Get Social Security Statement:
The social security statement can be requested from the social security administration and the form is available at the SSA office. You can download the form from the SSA website and fill it in with your details.
Fill out the form completely and provide your social security number, date and place of birth, and the name of your mother’s maiden. The information should be accurate and fill all sections exactly to estimate future earnings at the age of retirement.
The social security statement can be obtained after filling out the form that you can send to the online address or mail it to the mailing address given on the form. It will take almost 2 to 4 weeks to get the statement.
Calculate the Retirement Age:
The retirement age for all workers is between 65 and 67 years and a worker of this age can receive full benefits. The retiree at the age of 62 can receive the benefits at a reduced rate and the reduction rate ranges from 20 to 30 percent, or it may depend on the date of birth as well as the age of the beneficiary.
Reduction in Benefits:
A retiree who wants to receive benefits at an early age will get reduced payments, which can directly affect a spouse’s benefits. The retirement age is based on the year the beneficiary is born. The retired person of 62 years will receive 70 percent of his total retirement benefits, while his spouse will get 65 percent.
Maximum Benefit Amount:
A person who earned more than the taxable amount during his entire career and takes retirement at the age of 67, will receive $2,346 every month. The amount can be higher according to the year of birth, the age of the retiree, and the rules and regulations of the state.
Cost Benefit Analysis:
A person who takes retirement at the full retirement age will be entitled to full benefits and receive $28,152 annually, but if the person takes retirement at the age of 62, he will receive $21,114. The break-even point is the age at which the person retires and the number of years he waits to take full benefits. The person who takes retirement at the right age can earn full benefits compared to the person who retires at 62 or less. It is advised to workers to opt for the full retirement age instead of taking retirement at an early age.
Free Social Security Statement Templates
Download the Free Social Security Statement Template that can easily help you to prepare your own Social Security Statement effectively.