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Miscellaneous

: Doherty & Progar

Social Security Administration Unveils New Retirement Estimator

By Michael Progar

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The Social Security Administration has unveiled a new retirement estimator, which allows individuals to calculate their estimated retirement benefit in just a few minutes. Unlike the previous version, the new retirement estimator uses an individual's actual Social Security earnings history, requiring the use only to enter the previous year's income.

The estimator allows calculation of projected retirement benefits based on different possible scenarios. However, there are few things to keep in mind when using the estimator. Although future benefits will be adjusted for inflation, it appears likely that benefits may be curtailed in anticipation of the approaching retirement of millions of baby boomers.

Second, the estimator assumes that future earnings will remain at the same level as the previous year's earnings, which may not be accurate for some individuals. However, different scenarios can be entered into the estimator to account for the possibility of decreased or increased earnings in the future. The closer the individual is to retirement, the more accurate the estimate will be.

Full post as published by Doherty & Progar on July 21, 2008 (boomark / email).

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