Social Security Income

Estimating your future Social Security benefits used to be a difficult task, but not any longer. For an estimate of your projected benefits, go to www.ssa.gov/estimator. The retirement estimator gives estimates based on your actual Social Security earnings record.

The website form will ask you for a number of facts, including your name, Social Security number, date and place of birth, your mother’s maiden name, additional information you provide about future earnings, and the age at which you expect to stop working.

Based on this information and your actual earnings history as maintained by the Social Security Administration, the Retirement Estimator generates an estimate of the amount you would receive if you were to retire at age 62 (the earliest date you can receive benefits), the amount if you waited until full retirement age (which currently ranges from 65 to 67, based on year of birth), and the larger benefit you would receive if you continued working until age 70 before claiming retirement benefits.

It’s interesting to note that the 2011 Social Security Trustees Report includes a warning about the serious problems facing Social Security in the future. The trustees indicated that program costs (benefits paid) were more than non-interest income (Social Security payroll taxes) for the first time in 2010, and they expect this situation to continue. Without changes, the Social Security Trust Fund will be exhausted by 2036 and there will be enough money to pay only about 77 cents for each dollar of scheduled benefits.¹ This is a reminder that taxpayers are ultimately responsible for funding their own retirements and that their future Social Security benefits may be lower than indicated by the Retirement Estimator.

Source: 1) Social Security Administration, 2011

The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2012 Emerald Connect, Inc.

David Van De Hey is licensed in WI to offer insurance products, and life insurance (including variable life), annuities (including variable annuities), and is securities registered in IA, IN, MD, MO, NE, UT, and WI and adviser registered in WI. Andrew Van De Hey is licensed in WI to offer insurance products, and life insurance (including variable life), annuities (including variable annuities), and is securities registered in WI. Corey Grimes is licensed in WI to offer insurance products, and life insurance (including variable life), annuities (including variable annuities), and is securities registered in TX and WI and adviser registered in WI and TX.

This site is not a solicitation of interest in any of these products in any other state.

IMPORTANT CONSUMER INFORMATION: David Van De Hey, Andrew Van De Hey, and Corey Grimes may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if he is excluded or exempted from the state's registration requirements. Follow-up, individualized responses to consumers in a particular state by David, Andrew or Corey that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be, shall not be made without first complying with the state's requirements, or pursuant to an applicable state exemption or exclusion. For information concerning the licensure status or disciplinary history of a broker-dealer, investment adviser, BD agent or IA representative or any financial institution he represents, contact your state securities law administrator.

Insurance issued by Principal National Life Insurance Company (except in New York), Principal Life Insurance Company, the companies available through the Preferred Product Network, Inc., and/or through many fine carriers. Securities and advisory products offered through Princor Financial Services Corporation, 800/247-1737, member SIPC. Principal National, Principal Life, the Preferred Product Network, and Princor® are members of the Principal Financial Group®, Des Moines, IA 50392. David Van De Hey, Principal National and Principal Life Financial Representative, Princor Registered Representative, Financial Advisor. Andrew Van De Hey, Principal National and Principal Life Financial Representative, Princor Registered Representative. Corey Grimes, Princor Registered Representative, Financial Advisor. Van De Hey Financial Services, Inc. is not an affiliate of any company of the Principal Financial Group®.