Most people don't know how much their Social Security retirement benefits may be. Here's how to tell

Klaus Vedfelt | Getty Images

For most retirees, Social Security benefits is a major source of income.

Yet, just 11% of Americans who aren’t retired say they know exactly how much benefits they stand to receive, according to new research from the National Institute on Retirement Security.

At the same time, 24% are “not very sure” of their benefit amounts and 22% say they have no idea, according to the research, which is based on an October survey of more than 1,200 individuals ages 25 and up.

Men are more likely than women to say they have an exact or very good idea of the amount of monthly Social Security income they may eventually receive, NIRS found.

In 2024, almost 68 million Americans will receive a per month Social Security benefit, totaling about $1.5 trillion in benefits paid during the year. Retired workers receive an average of $1,918 per month.

However, experts say it’s important to know you do not have to be retired or near retirement to start gauging how much income in Social Security benefits you may be set to receive.

How to get your Social Security benefit estimate

To help workers of all ages gauge their benefits, the Social Security Administration provides detailed statements.

Individuals ages 18 and up can check their records online by creating a “My Social Security” account, according to the agency. Workers ages 60 and over who do not have online accounts can still expect paper statements in the mail. Everyone can request paper statements.

“Workers can go to the Social Security Administration website and log into their own account and receive an estimate of their future benefit amounts,” said Tyler Bond, research director at NIRS, during a Tuesday presentation of the firm’s research.

“Most workers seem not to have done that and don’t seem to have a good sense of what they will get personally from Social Security,” Bond said.

What your online statements will tell you

For individuals ages 62 through 70, the big reason to check your Social Security statement is to see how the annual cost-of-living adjustments affect your monthly benefit checks, according to Joe Elsasser, a certified financial planner and president of Covisum, a Social Security claiming software company.

But for workers who are younger, it’s still valuable to check statements.

“The best way to think about it is, what kind of living standard would Social Security provide if you continue to work, continue to basically get wages that are in line with inflation,” Elsasser said. “That’s what the Social Security statement tells you.”

It can also help to get an idea of how much of your income may be replaced by Social Security in retirement.

For example, if you’re currently earning around $6,000 a month, and your Social Security statement shows an estimated $2,000 monthly benefit, about one-third of your pre-retirement income may be replaced by Social Security benefits, Elsasser said.

However, it’s important to keep in mind the statements are just a snapshot in time, as they don’t project wage increases or future cost-of-living adjustments.

If your earnings history falls short of 35 years, the estimated benefit may fluctuate, because even one additional year of higher wages can have a substantial impact, Elsasser said.

“The closer someone is to age 62, the more accurate it is,” said Jim Blair, vice president of Premier Social Security Consulting and a former Social Security administrator.

What to watch out for

One important reason to check Social Security benefit statements 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, Blair said.

The records are correct most of the time, though mistakes can happen, he said.

“If you see earnings are missing or they’re not posted correctly, you can get that fixed,” Blair said. “And the earlier you catch it, the easier it is to fix it.”

To have your earnings record corrected, you can take your W-2 form (or Schedule SE if you’re self-employed), to your local Social Security Administration office, Blair said. (To schedule an appointment or get help by phone, call 1-800-772-1213.)

Other forms of proof can also be used to verify earnings, according to the SSA, including tax returns, wage stubs, pay slips, personal wage records or other documents. The agency will also investigate based on facts you remember if you do not have paper proof.

As the Social Security Administration asks online account holders to update their online accounts amid a transition to a more secure system, account holders should also watch out for fraud, Elsasser said.

Emails may try to redirect unsuspecting individuals to false links that are not affiliated with the SSA to try to steal their personal information, he said.

Before entering any information, make sure the link is a secure “.gov” website, Elsasser said. More important, rather than clicking on email links, opt instead to enter “SocialSecurity.gov” or “SSA.gov” in the search address bar.

To be sure, as Social Security’s trust funds run low, would-be beneficiaries may worry they may not receive benefits once they retire. Ultimately, Congress will likely implement changes to protect Social Security. Nevertheless, younger workers who are paying into the program through payroll taxes should still expect some return, Elsasser said.

“It’s totally reasonable to expect a benefit cut for younger people,” Elsasser said. “But to plan for it not to be there at all is a poor assumption.”