How the Social Security Administration Just Made Retirement Planning a Little Easier

Key Points

• 13 years ago, the SSA introduced a site where you could find all your Social Security information in one place.

• This site makes it easy to see how much more you'll need to save or invest to meet your post-retirement needs.

• It's such a help that you may find yourself regularly checking the site, simply to ensure you're still on track.

• The $23,760 Social Security bonus most retirees completely overlook ›

Not to brag, but I've always suspected that my love of financial planning may be unrivaled. While my husband believes it's a sickness, I've always enjoyed putting together a household budget (even when the money was not flowing). And, as I recently confessed to a friend, I'm really into retirement planning.

That's probably why mySocialSecurity has become one of my most visited sites. It didn't feel like my birthday or anything. Still, I did feel a little jolt of excitement upon learning the Social Security Administration (SSA) just added new features to its mySocialSecurity site.

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Decades ago, when I first started planning for a retirement that felt a millennium away, I'd search the house for our latest Social Security statements, grab a notebook, pen, and calculator, and find a comfortable place to calculate. I probably could have learned two foreign languages and how to play the cello in the time I spent grappling with all the "what ifs."

That was pre-internet, and I didn't have the information needed to create a long-term retirement plan that approached reality. But then, a bunch of geniuses contributed to the invention of the internet, and by 2012, the SSA had launched mySocialSecurity. While it was helpful back then, it's become a masterful tool for anyone serious about retirement planning.

Image source: Getty Images.

Latest additions

The mySocialSecurity site has always offered helpful tools, but the SSA is upping its game with these new additions:

Retirement calculator

The retirement calculator lets you compare month-by-month benefit estimates for ages 62 through 70. If you're thinking about retiring at age 63 years and 6 months, it will take mere seconds for the calculator to indicate your monthly benefit at 63 years and 6 months. The best thing about the retirement calculator is how it takes the fantasy out of retirement planning by helping you decide when you can realistically afford to retire.

Age-based fact sheet

The age-based fact sheet explains the relationship between your birth year and full retirement age. It spells out when you'll reach full retirement age (FRA), the age at which you're entitled to 100% of your Social Security benefits. It also shows what happens if you claim benefits at age 62 instead and how much your monthly benefit will be permanently reduced. Finally, the age-based fact sheet allows you to see how much your monthly benefit amount will increase if you delay claiming benefits past your FRA, up to age 70.

Earnings-based fact sheet

This fact sheet addresses how working while receiving Social Security benefits will impact your payments. While there's no impact if you collect Social Security after FRA, this is where you'd visit to learn how much the SSA will deduct from your benefits if you continue to work before FRA kicks in.

Benefit verification letter

The benefit verification letter spells out which benefits you currently receive. Whether you want it for your records or to provide proof of benefits to a third party, you can access the letter simply by logging into the site.

Form SSA-1099

So you'll never lose track of how much you've received in Social Security benefits, the SSA provides easy access to your SSA-1099, a tax form that reports your annual benefits. This information helps determine if your benefits are taxable and how much to report on your federal tax return.

Check your claim status

Whether you've filed for Medicare for the first time or you're ready to collect Social Security, your claim status provides up-to-date information regarding where your claim stands.

Request a replacement card

If you've ever lost your Social Security card, you may have experienced a moment of panic, wondering what to do. I've never actually misplaced mine, mostly because I'm afraid my parents will rise from the grave to remind me how important it is to protect it. Mom and Dad might have taken it a little easier on me if they knew how easy the SSA would make it to replace a card.

Planning for retirement

Here's how mySocialSecurity makes retirement planning less labor-intensive for me. I suspect you'll find even more interesting ways to use it.

• Budget coordination: The personalized retirement benefit estimate clarifies how much I expect to receive at each age. I use that information to coordinate with other savings and investments to develop a retirement plan that will fit our budget.
• Earnings history: There's a feature showing how much income I've claimed since my first job. I use it to double-check that SSA got my income right after I file taxes. Given that my Social Security benefits are calculated based on that earnings history, it's important to know they got it right.
• Connect with the SSA: I can use the site to contact the SSA and update my personal information. One day, when I'm collecting Social Security, I'll be able to use it to view direct deposit information, check out special notices, and ensure the appointed representative payee is who I want it to be (the person who will manage my benefits if I'm incapable of doing so).

I understand that retirement planning may not be everyone's cup of tea. However, I compare it to taking a moment to stop midway through a cross-country trip, just to see where I am and how much farther I have to go.

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