How to Use Social Security Tools and Calculators: 6 Quick Tips

Those planning for retirement, or inching ever-closer to that day where retirement will become a reality, certainly have a lot to look forward to. Sure, there’s going to be some hurdles to jump over down the road. But there’s also the reality that social security checks will start coming in, and a plethora of healthcare and other opportunities also become available.

So, for those looking to make their retirement as comfortable and enjoyable as possible, ensuring one has the right tools at their disposal is an important piece of the puzzle. 

I’m not going to say I’m an expert in this field necessarily. But the good news is that there are plenty of experts out there that have shared wisdom on which tools seniors should utilize to ensure they maximize their benefits when the time comes.

Here are the top six that really stood out to me. 

Spousal and Survivor Benefit Calculators

I’m going to dive into spousal and survivor benefit calculators first, because I think this is one of the key tools that’s perhaps the most under-utilized out there. At least, that’s what the experts say. 

For retirees who happen to be married or widowed, there are a range of specialized social security calculators that can be used to estimate how much each individual (and both combined) can expect to receive in retirement. What these tools do is essentially calculate a retiree’s (or a retired couple’s) total benefits. Wrapping in survivor and spousal benefits into the calculation is important, because with so many moving pieces (whether it’s pensions, or other non-social security payments) to consider, it’s possible for this key piece to get lost in the shuffle. 

There are rules around how much certain seniors will be able to realize from social security based on their other distributions, so this is a key calculator to be used by those who are or were married. 

Know Your Date

Folks who retire may choose to do so really at any age between 62 and 70. But “knowing one’s date” can mean different things, depending on one’s goals and ambitions in retirement.

Some seniors who may feel well enough to work, and may enjoy the comradarie that comes alongside with going into the office and interacting with younger individuals may choose to delay their retirement (more on that later). 

But for those looking to take early retirement or retire as soon as possible, knowing one’s full retirement age (FRA) is an important piece of the puzzle to have in place before getting started.

For those born before 1959, the full retirement age sits at 66. Those born in 1960 or later, that FRA goes up to 67 (and some in the personal finance space seem to think this number is only going to increase over time, given what other developed markets have done).

So, depending on when you were born, your benefits may change on that basis. This is a good starting point to kick off the next key tool.

Delay Retirement

No one likes delays, especially for something many of us are dearly looking forward to. 

But for those with the ability to wait (and age brings patience, or so they say), there are rewards at the end of the rainbow. 

While the FRA for most younger to middle-aged readers is 67, those who choose to delay taking social security benefits (up to age 70) will receive up to 8% more per year, in perpetuity.

Yup, that’s right. Delaying just three years allows investors who plan on living a long time (and who doesn’t) to really beef up their monthly checks.

That’s something I can get behind. Barring any significant health concerns that may change the calculus on this equation, that’s something I think most retirees should at least think about. 

Use Official SSA Calculators

Accuracy is important, particularly when it comes to something as important (and complicated) as calculating one’s retirement benefits. Thus, while there are plenty of private calculators put forward by personal finance companies looking to drum up business, most personal finance experts worth their salt will still recommend to most retirees to use the official government SSA calculators available online.

That’s because these calculators allow individuals to utilize their tax returns (which the IRS already has handy) to do a lot of the up-front work. Indeed, most of us don’t save key documents such as tax returns for more than 8-10 years. Having the ability to turn back the clock and know exactly how many years one worked, and what one’s income was 20 years ago, can be important. 

Read Up On How Benefits Are Calculated

Before getting started with this journey at all, at least having a basic understanding of the key factors that go into the model which determines how much one can expect to receive in retirement is important. 

Your Social Security benefits aren’t based on your last job or your highest-paid year—they are calculated from your 35 highest-earning years. The SSA uses your average indexed monthly earnings (AIME) to determine your primary insurance amount (PIA), which is the baseline benefit you’ll receive at full retirement age (FRA).

If you’ve worked fewer than 35 years, years with zero earnings are factored into the formula, reducing your monthly benefit. This means working additional years at a higher income can replace lower-earning years and increase your lifetime benefits.

To ensure your Social Security benefits are calculated correctly, review your earnings record regularly through your my Social Security account. Any errors in reporting can lead to lower benefit payments if not corrected in time. If you find discrepancies, report them to the SSA as soon as possible.

Use Detailed Calculators

For individuals with complex financial situations, such as those with multiple pensions, non-covered employment, or irregular earnings, the SSA’s Detailed Calculator provides the most precise benefit estimates. Unlike the Retirement Estimator, which offers quick projections, the Detailed Calculator requires downloading software but allows for customized inputs based on individual financial circumstances.

This tool is particularly useful for government employees with pensions from non-Social Security-covered jobs, as it accounts for Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) reductions. It can also be beneficial for self-employed individuals whose earnings vary significantly from year to year.

Using the Detailed Calculator requires entering detailed earnings information, but it ensures that your projected benefits reflect real-life scenarios. If your financial situation involves multiple income sources, retirement accounts, or unique tax considerations, this tool is the best way to get an accurate estimate of your future Social Security benefits.

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