If you plan to retire in the United States, it is very important to keep track of the status of your social security. This can be done by creating an account on the Social Security Administration (SSA) portal.
You can open an account at the website ssa.gov/myaccount. Workers aged 18 and older are eligible to create an account. You will need to provide some personal information to verify your identity.
When opening the account for the first time, you will have to answer a series of multiple-choice questions that may include questions about financial products you own and previous addresses. You can also add extra security to your account by choosing to use a unique code received via text message or email whenever you log in.
What information can you obtain through this account?
Check your earnings record
You can see a list of how much you earned each year during your career. “Workers should check their Social Security statement once a year to ensure that the wage amounts reported in their record are accurate,” says Nicole Tiggemann, spokesperson for the Social Security Administration.
Compare the salary on your Social Security statement with your tax documents annually and correct any errors so that all your contributions are counted and accounted for in your retirement benefit. It is the 35 years with the highest earnings that count towards the benefit calculation.
See how much you paid into Social Security
Most workers pay 6.2% of their earnings to the Social Security system, and employers match this amount. You can find out how much you and your employers have paid into the Social Security and Medicare systems throughout your career using your SSA account.
Get an estimate of your future payments
The SSA provides an estimate of how much you will receive in retirement at your full retirement age, which is typically 66 or 67 years, depending on your birth year. Your account will also list the amount you are likely to receive if you claim a reduced payment at age 62 and how much your payment will increase if you delay the claim until age 70. “In most situations, it is advantageous to delay because your benefit is higher at 70 than at 62,” says Alicia Munnell, director of the Center for Retirement Research at Boston College. The estimates assume that you will continue earning your current salary until retirement and may differ if your earnings change.
Find out how much you will receive if you become disabled
Your Social Security statement lists the amount you will receive from Social Security if you develop a severe physical or mental disability that prevents you from working in the job you had before the onset of the disability or in another position for which you are qualified. Benefit payments do not begin until six months after the onset of the disability.
Know what family members will receive if you die
Children of retirees or disabled individuals may also qualify for Social Security payments. If you pass away next year, your dependent children and a spouse caring for your children will receive a specific amount each month that is listed on your Social Security statement. There may be a limit on the total dollar amount for which your family is eligible. Your spouse and minor child may also be eligible for a death benefit.
Keep your account updated
Existing beneficiaries of social security can use their Social Security account to set up or change their direct deposit information. You can also change your phone number and address after a move and obtain forms. Registering with Social Security prevents someone else from creating an account in your name using your Social Security number and gaining access to your personal information.
Request Documentation
An account with Social Security allows you to request a variety of documents, including a replacement Social Security or Medicare card and a benefit verification letter.
Source: U.S. News and World Report