Your Social Security Statement is one of the most useful retirement-planning documents you will ever receive, and it is free. It summarises the earnings the Social Security Administration (SSA) has on file for you and estimates the monthly benefit you could receive depending on when you claim. Reading it carefully every year helps you plan and catches mistakes before they cost you money.
Where to find your statement
Statements are available online through a personal my Social Security account at ssa.gov. Once you create an account you can view or download the statement at any time. Paper statements are still mailed to some people who are not registered online, typically starting a few months before milestone birthdays.
The three benefit estimates
The statement shows what your monthly retirement benefit would be if you started at three points: age 62 (the earliest possible), your full retirement age (between 66 and 67 depending on your birth year), and age 70 (the latest point at which delaying still increases your benefit). The difference between the three figures is the single most important thing on the page. Claiming at 62 permanently reduces the payment, while waiting past full retirement age adds delayed retirement credits of up to 8% per year until 70.
Your earnings record
Below the estimates is a year-by-year list of the wages and self-employment income reported for you. Benefits are calculated from your highest 35 years of earnings, so a missing or incorrect year can lower your benefit. Compare the figures against your own records, such as W-2 forms or tax returns. If a year is wrong or missing, contact the SSA with proof; corrections can usually be made, but it is easier when the paperwork is recent.
Disability and survivor estimates
The statement also shows what you would receive if you became disabled and what your family could receive if you died. These figures matter for planning even if you never use them, because they show how much of your household's safety net depends on your work record.
What the statement does not show
The estimates assume you keep earning at roughly your current level until you claim. If you stop working earlier or your income changes, the real figure will differ. The statement also does not account for Medicare premiums that are usually deducted from benefit payments, or for taxes on benefits if your combined income is above certain thresholds.
Review your statement each year, keep copies of your earnings records, and use the three estimates to think about the best claiming age for your circumstances. If your benefit will be modest, read our guide to Supplemental Security Income, which can top up low Social Security payments, and our guide to investment options for seniors for the rest of your retirement income.
