How to Calculate Estimated Social Security Benefits

By eHow Personal Finance Editor

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Social Security benefits are paid out to those contributing to the Social Security program over their lifetime. The funds are meant to be a source of income for retirement. They can also be used as survivor benefits (for children or spouses of those who die) as well as disability benefits. Calculate the estimated Social Security benefits you will have at retirement using these methods.

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Instructions

Difficulty: Easy

Step1

Read your Social Security Statement, sent by the Social Security Administration yearly. It shows you how much money you have put into the system, how much you would get if you were disabled (or stopped working) and estimates benefits at retirement if you continue making money the way you currently are. Visit the Social Security Administration website to request a statement.

Step2

Gather your specific information including your past wages and use the detailed online estimation calculator supplied by the Social Security Administration on their website. This updated tool gives you an accurate look at your current situation.

Step3

Adjust the numbers you put into the online calculator to see what you may be able to get in estimates if you increase your income or change the amount of money added to Social Security.

Step4

Take into consideration a pension, should you receive one. This is called a Windfall Elimination Provision. Use the WEP version of the Online Calculator to estimate your Social Security benefits taking into account your pension.

Step5

Determine if you qualify as a spouse for benefits. Widows and widowers may need to use a Government Pension Offset Calculator to determine their benefits if they will receive any pension dues from their spouse.

Step6

Realize this is just an estimate and it can change over time. Stay current with your estimate and calculations by checking your benefits yearly.

Tips & Warnings

Because of the complex calculations, manually calculating your benefits is difficult, but the SSA's calculators are a fast, accurate and easy solution.