How do you understand a Social Security Benefits estimate letter from government?
rrsafety asked:
I am 42 years old and just got my yearly benefits estimate from Social Security. They estimate my benefit to be about $2000 a month when I retire… is that factoring in inflation or not, or should I assume that amount is likely to grow 2-3% higher per year over the next 23 years.
Also, if my spouse is also eligible for benefits, do we just add our two estimated benefits together or do they reduce one of them when both spouses are receiving benefits?
Gregory
I am 42 years old and just got my yearly benefits estimate from Social Security. They estimate my benefit to be about $2000 a month when I retire… is that factoring in inflation or not, or should I assume that amount is likely to grow 2-3% higher per year over the next 23 years.
Also, if my spouse is also eligible for benefits, do we just add our two estimated benefits together or do they reduce one of them when both spouses are receiving benefits?
Gregory
Elizabeth
that est. isnt factoring anything but the times we are in now.
Catherine
It is difficult to rely on the estimates provided by Social Security as there is so much uncertainty surrounding the funding of the Social Security program. Most likely, in 25 years when you retire, there will have been some substantial modifications to the program which most likely won’t involve your benefits going up.
It is very difficult to tell (was just looking at my statement today) whether they mean the $2,000 is a future amount but I’m pretty sure it is. Therefore, don’t increase it by 2 to 3% a year.