Americans are way off target when it comes to how much Social Security they will make in retirement. But new research shows that taking one simple step can dramatically reduce the degree of error.
People in their 50s and 60s underestimate their future Social Security benefits by an average of $1,896 annually, or 11.5%. recent papers From the National Economic Research Institute.
For about a quarter of adults in that age group, the error is even more severe, $5,100 or more annually.
However, those who receive at least one social security statement have a better life. For these people, the amount of error drops to an average of $344 per year.
In the past, such statements were mailed directly to individuals, but that practice almost died out a few years ago. We focused on the period from 1992 to 2018 received.
Currently, the best way to obtain such statements is to sign up for your own personal account on the SSA website.
These statements highlight your income history as a worker and estimate the benefits you are likely to be eligible for at various billing ages.
Getting a good idea of ​​how much you are likely to earn on Social Security benefits is an important part of estimating your retirement income.
One of the co-authors of this paper — Grant Seiter, Senior Fellow at the American Enterprise Institute — told AARP People are just “not so good” at estimating their own interests without the help of statements.
“For most Americans, Social Security is a big source of retirement income. Accurately estimating benefits is very important.”
Mailing of statements largely stopped in 2011, but has since resumed on a limited basis, mainly for people over the age of 60 who have not signed up for an online account. Mailing continues with these Americans until they claim the benefits.
AARP has approved a bipartisan law to resume regular mailing of statements at five-year intervals for workers up to age 55 and more frequently for workers older.
Learn more about opening a Social Security account below.