SS Projection (social security, 2015, state, years)
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Here is an article that explains the inaccuracy (and says for you it probably is accurate): Social Security Q&A: How Accurate Are Social Security's Benefit Estimates?
It also has a link to a tool that is more accurate. The good news (as explained) is that the standard estimate is low for most people.
Just got my statement. I am 61 so it is now of more interest.
Says I will get:
@62 $2,024
@66 $2,714
@70 $3,604
I know the deduction from 66 down to 62 and the benefit from 66 up to 70 but is there any inflation or cost of living boost in there also?
COLA increases may be granted annually when an increase is merited. There will be no increase for 2016, and a good possibility of no increase for 2017.
If you happen to be alive around 2025 or so, you'll see double-digit COLA increases.
Quote:
Originally Posted by caco54
They have my income correct for the last 45 years don't understand why the projection would be off.
Quote:
Average Indexed Monthly Earnings (AIME)
When we compute an insured worker's benefit, we first adjust or "index" his or her earnings to reflect the change in general wage levels that occurred during the worker's years of employment. Such indexation ensures that a worker's future benefits reflect the general rise in the standard of living that occurred during his or her working lifetime.
Up to 35 years of earnings are needed to compute average indexed monthly earnings. After we determine the number of years, we choose those years with the highest indexed earnings, sum such indexed earnings, and divide the total amount by the total number of months in those years. We then round the resulting average amount down to the next lower dollar amount. The result is the AIME.
Eligibility and indexing
Wage indexing depends on the year in which a person is first eligible to receive benefits. For retirement, eligibility is at age 62. So if a person reaches age 62 in 2015, then 2015 is the person's year of eligibility.
An individual's earnings are always indexed to the average wage level two years prior to the year of first eligibility. Thus, for a person retiring at age 62 in 2015, the person's earnings would be indexed to the average wage index for 2013 (44,888.16). Earnings in a year before 2013 would be multiplied by the ratio of 44,888.16 to the average wage index for that year; earnings in 2013 or later would be taken at face value.
...is the primary reason why the calculations are off. Another factor is the years that are actually chosen.
Year: 2009
Avg Wage: $40,711.61
Pct Change: -1.51%
People who started drawing benefits in 2011 got less money than if they had waited a year or two.
Quote:
PIA formula For an individual who first becomes eligible for old-age insurance benefits or disability insurance benefits in 2015, or who dies in 2015 before becoming eligible for benefits, his/her PIA will be the sum of:
(a) 90 percent of the first $826 of his/her average indexed monthly earnings, plus (b) 32 percent of his/her average indexed monthly earnings over $826 and through $4,980, plus (c) 15 percent of his/her average indexed monthly earnings over $4,980.
Just got my statement. I am 61 so it is now of more interest.
Says I will get:
@62 $2,024
@66 $2,714
@70 $3,604
Are you still working?
If so keep in mind that your SS statemen projections assume you will continue to work and earn income at the same level you did for the preceding calendar year.
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