Social Security 101

How much will you get?

About 60 days before your birthday each year, the Social Security Administration sends out to every American worker what’s called a Personal Earnings and Benefits Estimate Statement, which outlines what you can expect as a retirement benefit.

If you haven’t seen yours by the time you’ve blown out the candles on your cake, get a copy of your earnings record and check what the Social Security Administration has recorded as your contributions against the Social Security contributions you’ve made (which you’ll find listed on your year-end pay stubs and W-2 forms).

To get a copy of your Personal Earnings and Benefits Statement (Form SSA-7004), go to www.ssa.gov/online/ssa-7004.html, where you can download a request form. Or you can call the SSA at 800-772-1213. (While you are at it, ask for a copy of their booklet “Retirement Benefits” [Publication No. 05-10035]—a guide to Social Security retirement benefits.)

Fill out this form (it takes only a minute) and submit through the Web site or mail it back to the SSA. About three weeks later, you’ll get your personal statement, which will tell you how much you may expect to receive from Social Security, based on their records of your lifetime contributions.

By checking your records against theirs, you’ll spot mistakes quickly. It’s much easier for the SSA to correct an error before they start paying benefits to you than after!

Dolan Smart Money Move: If you’re married, you may find that your spouse’s benefit is more than twice yours. If that’s the case, you’re better off applying for your 50% spousal benefit instead of your full benefit. Do the math and see which one pays you more each month.

Be aware that if you’ll be getting a government pension, this money may offset your Social Security benefits, and you may wind up with a lower monthly check. Fortunately, private pension benefits don’t usually affect your Social Security benefits. One exception is a deferred-compensation payout or severance payment. However, as long as you let the SSA know in advance that the payments you’re receiving were for work you did before you retired, your benefits should remain intact.

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