When you reach a certain age and retire – or if you’re disabled and can’t work – you are entitled to cash distributions from the Social Security Administration.
These benefits become available to you after you pay into the system via payroll tax. In 2023, both you and your employer pay 6.2% of your wages. If you are self-employed, you pay 12.4% of your income.
Your Social Security statement tells you exactly how much money you’ll receive per month at different retirement ages, so you definitely should be checking it to ensure all of the information is correct.
In general, the SSA will not mail paper Social Security statements to people under age 60. Younger workers who want to check their earnings history or taxes they’ve paid need to create a “my Social Security” account to view their statements online.
What Is a Social Security Statement?
Your Social Security statement gives you a personalized estimate of how much you’ll receive from Social Security if you retire or become disabled, and how much your family members might be eligible for if you die. The statement also lists your earnings record, which will be used to determine your Social Security payments and which you can review and correct if necessary.
If you haven’t checked your Social Security statements since 2021, you’ll notice that the newer ones are more streamlined and easier to read. These statements include:
- Information about retirement, disability and survivor benefits.
- Personalized payout for monthly retirement benefits depending on the age you start.
- Medicare qualification information.
- Your earnings that were taxed for Social Security.
- Information about earnings that are not covered by Social Security.
- What to know about Social Security benefits.
- Links for more information and applying for Social Security benefits.
How to Get Your Social Security Statement
To view your Social Security statement, first create a my Social Security account at ssa.gov/myaccount.
Creating your account is fast and easy.
“Set up your access like any other financial site and check your Social Security data any time you want,” says Andy Landis, author of “Social Security: The Inside Story.”
You need to verify your identity by answering questions about personal information, then enter a username and password. A one-time security code will be sent to your phone or email address each time you log in.
How Much Will You Get From Social Security When You Retire?
The retirement age when you qualify for full retirement benefits depends on the year you were born, as does the amount you receive before that date:
Your Social Security statement will include an estimate of how much money you will receive each month if you sign up for Social Security at nine different retirement ages between 62 and 70. It will also show whether you’ve worked long enough to qualify for benefits.
“The statement shows clearly that the longer you wait to claim benefits, the more you get each month,” says Jonathan Peterson, author of “Social Security For Dummies.”
“Over time, the difference can be many thousands of dollars, so it makes a lot of sense to look at the projections at different retirement ages and think about what they mean for you,” he says.
It’s important to note that these benefit estimates assume Social Security law will remain unchanged and that you will continue to earn your current salary, both of which could change in the future.
What Happens if You Become Disabled
Social Security benefits aren’t just for retirees. Your Social Security statement will also show you the benefit amount you’ll be eligible for if you become disabled in the coming year.
There is typically a five-month waiting period before distribution, so your first benefit will be due the sixth full month after your disability began.
How Much Your Family Members Will Receive if You Die
Social Security pays out benefits to families when a breadwinner passes away, too.
Your dependent children and a spouse caring for those children will likely all be eligible for payments upon your death, and the amount they will get is on your statement.
Your spouse may also receive retirement benefits based on your work record, even if you die before retirement. In addition, a spouse or minor child may be eligible for a one-time death benefit when you pass away.
Check Your Earnings Record
Your Social Security statement typically lists every year you’ve worked and how much you earned, so review it carefully to make sure it’s correct.
“Sometimes your income does not get properly reported to Social Security,” says Brian Vosberg, a certified financial planner and president of Vosberg Wealth Management in Glendora, California. “Checking annually will help guarantee accuracy.”
Keep in mind that the 35 years during which you have the highest earnings are used to calculate your retirement payout.
Verify Your Social Security and Medicare Contributions
Under your earnings chart, the statement lists the total amount you have paid into Social Security and Medicare throughout your career.
It’s a good idea to double-check these amounts to ensure you’re getting credit for your contributions.
The Bottom Line on Social Security Statements
As a worker in the United States, you are required to pay into the Social Security program – for 2023, the amount can be up to $160,200. A portion of your benefits will also be available to your family members when you die.
For these reasons it is important to conduct a thorough annual review of your statement. With that much money at stake, it’s essential all of your information is accurate.
