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Most Americans Are in the Dark About How Much Their Social Security Benefit Will Be
July 23, 2024
For most retirees, Social Security benefits will be a huge part of their retirement income. Unfortunately, few Americans know how much they stand to receive in retirement.
According to a recent survey from the National Institute on Retirement Security, only 11% of Americans said they know exactly how much they will be receiving once retirement begins. Double that amount, 22%, said they have “no idea at all” how much their retirement benefit will be. An additional 24% said they were “not very sure.” The survey was based on data from 1,200 pre-retirement individuals ages 25 and up.
In 2024, some 68 million Americans will receive monthly benefits from Social Security, totaling payments of about $1.5 trillion in benefits. Retirees on average receive $1,918 per month. Benefits can vary widely, however, based on your work history and income, so it is important for every pre-retiree to know exactly how much they stand to receive.
Individuals over the age of 18 can check their records and get an estimated benefit amount by creating a “My Social Security” account at ssa.gov. For workers who are nearing retirement, it is a good idea to create an account and begin monitoring their estimated benefit as well as the cost-of-living-adjustment made each year, so that they have a clear sense of how much they will be receiving and how much it will change year to year.
Even younger workers should be aware of their estimated benefits too. There is a great deal that could change in the years and potentially even decades between now and retirement that will affect the ultimate benefit, but understanding broadly how much of your income Social Security will replace is an important part of financial planning. Another important reason to check your “My Social Security” account regularly is to make sure there are not any errors in your earnings history. It’s a good idea to check your Social Security statement annually to double-check your wage history as it is updated. Records are typically accurate, but mistakes do happen.
