Factoring in Social Security

Q: I’m just now beginning to think about planning for retirement, and I don’t recall receiving any statements recently from Social Security about my benefits.  Do you how much the average person today can expect to receive in benefits?

A: I’m glad to hear you’re looking to plan for your retirement, and one of the first steps in your planning should be to get an accurate read on just how much income you can expect to receive from Social Security.  This should help you get started…

How Much Social Security Can You Expect?

The exact amount of your Social Security benefit will depend upon your earnings history and retirement timing. Although Social Security provides only about a third of a typical retiree’s income, it often serves as the foundation for calculating how much other income you’ll need and how much you’ll need to save. 

The best and most accurate estimate of your future Social Security benefits comes from the Social Security Administration (SSA). If you are age 60 or older, you should be automatically sent an annual statement showing exactly how much you can expect when you retire. If you are under age 60, you can access current estimates through the SSA’s My Social Security site at www.ssa.gov/myaccount. You can also access SSA’s online calculators there as well.

Here is a summary of the different ways you can get accurate estimates of your Social Security:

• Social Security Statements are mailed annually to anyone age 60 or older who has paid into Social Security. The statements include an estimate of your monthly benefit at full retirement age, based on your earnings history. They also show your earnings history – a year-by-year breakdown of earnings on which benefits are based.  You can also request a statement by creating a personal my Social Security account as www.ssa.gov. Once it’s set up, you can easily access updates and view your earnings history. You can also request a statement at any time by calling 1-800-772-1213 or contacting your local SSA office.

• The Retirement Estimator at www.ssa.gov gives estimates based on your actual Social Security earnings record. The calculator shows results for early (age 62), full (ages 65-67 depending upon your year of birth), and delayed (age 70) retirement. The Retirement Estimator also lets you create additional “what if” retirement scenarios based on current law.

• Other SSA benefit calculators at www.ssa.gov help you estimate your Social Security benefits if you do not have an earnings record with Social Security or cannot access it. The calculators will show your retirement benefits as well as disability and survivor benefit amounts if you should become disabled or die. A variety of calculators are available that address different circumstances.

A recent report by the SSA suggests that a lot of Americans are not taking advantage of the free statements available to anyone who has paid into Social Security. According to the report, only 43% of registered my Social Security users accessed their accounts online in 2018, down from 96% in 2012.1

How much depends on when you start collecting?

If you want, you can sign up for Social Security benefits at age 62. However, you’ll receive less than your full benefit — somewhere between 70% and 75% — depending on when you were born. What’s more, if you are still working and make more than the yearly earnings limit ($17,640 in 2019), your benefit will be reduced by one dollar for every two dollars earned beyond that limit.

Wait until full retirement age (from 66 to 67 for those born after 1942) and you’ll receive your full benefit and face no earnings penalty. Sign up for benefits beyond full retirement age and your benefit will increase 8% a year until you reach age 70.

When you decide to collect will depend in part on how much you can expect to receive. So make a point of checking out one of the resources above.  Perhaps to best way to maximize your Social Security benefits is to coordinate this decision with the rest of your Retirement Income Planning. 


1Source: Social Security Administration OIG, Issuance of Social Security Statements, February, 2019.

Jeremy R. Gussick is a CERTIFIED FINANCIAL PLANNER™ professional affiliated with LPL Financial, the nation’s largest independent broker-dealer.*  Jeremy specializes in the financial planning and retirement income needs of the LGBT community and was recently named a 2018 FIVE STAR Wealth Manager as mentioned in Philadelphia Magazine.** He is active with several LGBT organizations in the Philadelphia region, including DVLF (Delaware Valley Legacy Fund) and the Independence Business Alliance (IBA), the Philadelphia Region’s LGBT Chamber of Commerce.  OutMoney appears monthly.  If you have a question for Jeremy, you can contact him via email at [email protected]

Jeremy R. Gussick is a Registered Representative with, and securities and advisory services are offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.

This article was prepared with the assistance of DST Systems Inc. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This communication is not intended to be tax advice and should not be treated as such. We suggest that you discuss your specific situation with a qualified tax or legal advisor. Please consult me if you have any questions. To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity. 

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*As reported by Financial Planning magazine, June 1996-2018, based on total revenues.

**Award based on 10 objective criteria associated with providing quality services to clients such as credentials, experience, and assets under management among other factors. Wealth managers do not pay a fee to be considered or placed on the final list of 2018 Five Star Wealth Managers.