Personal Finance

How to get your Social Security benefit estimate

Published

7 months ago

August 1, 2024

Business Finance News

Klaus Vedfelt | Getty Images

For most retirees, Social Security benefits is a major source of income.

Yet, just 11% of Americans who aren’t retired say they know exactly how much benefits they stand to receive, according to new research from the National Institute on Retirement Security.

At the same time, 24% are “not very sure” of their benefit amounts and 22% say they have no idea, according to the research, which is based on an October survey of more than 1,200 individuals ages 25 and up.

Men are more likely than women to say they have an exact or very good idea of the amount of monthly Social Security income they may eventually receive, NIRS found.

In 2024, almost 68 million Americans will receive a per month Social Security benefit, totaling about $1.5 trillion in benefits paid during the year. Retired workers receive an average of $1,918 per month.

However, experts say it’s important to know you do not have to be retired or near retirement to start gauging how much income in Social Security benefits you may be set to receive.

How to get your Social Security benefit estimate

To help workers of all ages gauge their benefits, the Social Security Administration provides detailed statements.

Individuals ages 18 and up can check their records online by creating a “My Social Security” account, according to the agency. Workers ages 60 and over who do not have online accounts can still expect paper statements in the mail. Everyone can request paper statements.

“Workers can go to the Social Security Administration website and log into their own account and receive an estimate of their future benefit amounts,” said Tyler Bond, research director at NIRS, during a Tuesday presentation of the firm’s research.

“Most workers seem not to have done that and don’t seem to have a good sense of what they will get personally from Social Security,” Bond said.

What your online statements will tell you

For individuals ages 62 through 70, the big reason to check your Social Security statement is to see how the annual cost-of-living adjustments affect your monthly benefit checks, according to Joe Elsasser, a certified financial planner and president of Covisum, a Social Security claiming software company.

But for workers who are younger, it’s still valuable to check statements.

“The best way to think about it is, what kind of living standard would Social Security provide if you continue to work, continue to basically get wages that are in line with inflation,” Elsasser said. “That’s what the Social Security statement tells you.”

It can also help to get an idea of how much of your income may be replaced by Social Security in retirement.

For example, if you’re currently earning around $6,000 a month, and your Social Security statement shows an estimated $2,000 monthly benefit, about one-third of your pre-retirement income may be replaced by Social Security benefits, Elsasser said.

However, it’s important to keep in mind the statements are just a snapshot in time, as they don’t project wage increases or future cost-of-living adjustments.

If your earnings history falls short of 35 years, the estimated benefit may fluctuate, because even one additional year of higher wages can have a substantial impact, Elsasser said.

“The closer someone is to age 62, the more accurate it is,” said Jim Blair, vice president of Premier Social Security Consulting and a former Social Security administrator.

What to watch out for

One important reason to check Social Security benefit statements is to make sure there are not any errors in your earnings history.

It’s a good idea to check your Social Security statement annually to double check your wage history as it is updated, Blair said.

The records are correct most of the time, though mistakes can happen, he said.

“If you see earnings are missing or they’re not posted correctly, you can get that fixed,” Blair said. “And the earlier you catch it, the easier it is to fix it.”

To have your earnings record corrected, you can take your W-2 form (or Schedule SE if you’re self-employed), to your local Social Security Administration office, Blair said. (To schedule an appointment or get help by phone, call 1-800-772-1213.)

Other forms of proof can also be used to verify earnings, according to the SSA, including tax returns, wage stubs, pay slips, personal wage records or other documents. The agency will also investigate based on facts you remember if you do not have paper proof.

As the Social Security Administration asks online account holders to update their online accounts amid a transition to a more secure system, account holders should also watch out for fraud, Elsasser said.

Emails may try to redirect unsuspecting individuals to false links that are not affiliated with the SSA to try to steal their personal information, he said.

Before entering any information, make sure the link is a secure “.gov” website, Elsasser said. More important, rather than clicking on email links, opt instead to enter “SocialSecurity.gov” or “SSA.gov” in the search address bar.

To be sure, as Social Security’s trust funds run low, would-be beneficiaries may worry they may not receive benefits once they retire. Ultimately, Congress will likely implement changes to protect Social Security. Nevertheless, younger workers who are paying into the program through payroll taxes should still expect some return, Elsasser said.

“It’s totally reasonable to expect a benefit cut for younger people,” Elsasser said. “But to plan for it not to be there at all is a poor assumption.”

Don’t miss these insights from CNBC PRO

Personal Finance

Trump plan to freeze funding stymies Biden-era energy rebates for consumers

Published

14 hours ago

February 26, 2025

Business Finance News

Westend61 | Westend61 | Getty Images

Some states have stopped disbursing funds to consumers via Biden-era rebate programs tied to home energy efficiency, due to a Trump administration freeze on federal funding enacted in January.

The Inflation Reduction Act, passed in 2022, had earmarked $8.8 billion of federal funds for consumers through two home energy rebate programs, to be administered by states, territories and the District of Columbia.

Arizona, Colorado, Georgia and Rhode Island — which are in various phases of rollout — have paused or delayed their fledgling programs, citing Trump administration policy.

The White House on Jan. 27 put a freeze on the disbursement of federal funds that conflict with President Trump’s agenda — including initiatives related to green energy and climate change — as a reason for halting the disbursement of rebate funds to consumers.

That fate of that freeze is still up in the air. A federal judge issued an order Tuesday that continued to block the policy, for example. However, it appears agencies had been withholding funding in some cases in defiance of earlier court rulings, according to ProPublica reporting.

In any event, the freeze — or the threat of it — appears to be impacting state rebate programs.

“Coloradans who would receive the Home Energy Rebate savings are still locked out by the Trump administration in the dead of winter,” Ari Rosenblum, a spokesperson for the Colorado Energy Office, said in an e-mailed statement.

The U.S. Department of Energy and the White House didn’t return a request for comment from CNBC on the funding freeze.

In some states, rebates are ‘currently unavailable’

Consumers are eligible for up to $8,000 of Home Efficiency Rebates and up to $14,000 of Home Electrification and Appliance Rebates, per federal law.

The rebates defray the cost of retrofitting homes and upgrading appliances to be more energy efficient. Such tweaks aim to cut consumers’ utility bills while also reducing planet-warming carbon emissions.

California, the District of Columbia, Maine, Michigan, New Mexico, New York, North Carolina and Wisconsin had also launched phases of their rebate programs in recent months, according to data on an archived federal website.

All states and territories (except for South Dakota) had applied for the federal rebate funding and the U.S. Department of Energy had approved funding for each of them.

The Arizona Governor’s Office of Resiliency said its Home Energy Rebates programs would be paused until federal funds are freed up.

“Due to the current federal Executive Orders, memorandums from the White House Office of Management and Budget, and communications from the U.S. Department of Energy, funding for all Efficiency Arizona programs is currently unavailable,” it said in an announcement Friday.

Rhode Island paused new applications as of Jan. 27 due to “current uncertainty” with Inflation Reduction Act funding and executive orders, according to its Office of Energy Resources.

How Berkshire's insurers deal with climate change risk

The Georgia Environmental Finance Authority launched a pilot program for the rebates in fall 2024. That program is ongoing, a spokesperson confirmed Monday.

However, the timeline for a full program launch initially planned for 2025 “is delayed until we receive more information from the U.S. Department of Energy,” the Georgia spokesperson explained in an e-mail.

However, not all states have pressed the pause button: It appears Maine is still moving forward, for example.

“The program remains open to those who are eligible,” Afton Vigue, a spokesperson for the Maine Governor’s Energy Office, said in an e-mail.

The status of rebates in the eight other states and districts to have launched their programs is unclear. Their respective energy departments or governor’s offices didn’t return requests for comment.

‘Signs of an interest’

While the Trump administration on Jan. 29 rescinded its memo ordering a freeze on federal grants and loans — two days after its initial release — the White House said the freeze nonetheless remained in full force.

Democratic attorneys general in 22 states and the District of Columbia filed a lawsuit against the Trump administration, claiming the freeze is unlawful. The White House has claimed it is necessary to ensure spending aligns with Trump’s presidential agenda.

David Terry, president of the National Association of State Energy Officials, said he is optimistic the rebate funding will be released to states soon.

“For these two particular programs, I do not think [the freeze] will stymie the programs,” Terry said. “I see signs of an interest in moving them forward and working with the states to implement them.”

Personal Finance

Social Security Fairness Act benefit increases to arrive this spring

Published

16 hours ago

February 26, 2025

Business Finance News

Skynesher | E+ | Getty Images

Lump sum payments to begin arriving in February

In a new update released on Tuesday, the SSA said it will begin issuing retroactive payments in February. Most people will receive the one-time payment by the end of March, according to the agency.

The SSA plans to process the increase to monthly benefits starting in April.

The new timeline “supports President Trump’s priority to implement the Social Security Fairness Act as quickly as possible,” Social Security acting commissioner Lee Dudek said in a statement.

“The agency’s original estimate of taking a year or more now will only apply to complex cases that cannot be processed by automation,” Dudek said. “The American people deserve to get their due benefits as quickly as possible.”

Top Social Security official exits after refusing DOGE access to sensitive data

Among those affected include some teachers, firefighters and police officers in certain states; federal employees who are covered by the Civil Service Retirement System and people who worked under foreign social security systems, according to the Social Security Administration.

What affected beneficiaries should know

Retroactive payments, which most people should receive by the end of March, will be deposited directly into bank accounts on file with the Social Security Administration.

All affected beneficiaries should receive a notice by mail from the Social Security Administration with details about their retroactive payment and new benefit amount. Those notices should come two to three weeks after the retroactive payments, according to the agency.

If your direct deposit information or current mailing address are up to date with the agency, no action is needed, according to the agency. If you want to double check the information the agency has on file, you may sign into your personal online account or call the agency.

If you want to ask about the status of your retroactive payment, the Social Security Administration urges you to hold off until April.

Beneficiaries should also wait until after they have received their April monthly check before contacting the agency to ask about their new benefit amount.

Personal Finance

The average IRS tax refund is 32.4% lower this season. Here’s why

Published

2 days ago

February 25, 2025

Business Finance News

The average tax refund is 10.4% lower than last year according to the latest Internal Revenue Service data, and inflation is taking more of those dollars.

Bill Oxford | E+ | Getty Images

The average tax refund this year is down 32.4% compared to last year, according to early filing data from the IRS.

Tax season opened on Jan. 27, and the average refund amount was $2,169 as of Feb. 14, down from $3,207 about one year prior, the IRS reported on Friday. That figure reflects current-year refunds only.

However, the Feb. 14 filing data doesn’t include refunds receiving the earned income tax credit or additional child tax credit, which aren’t issued before mid-February, the IRS noted. The previous year’s filing data included tax returns claiming these credits. The value of these tax breaks can be substantial, even resulting in five-figure refunds, in some cases.

Typically, you can expect a refund when you overpay taxes throughout the year via paycheck withholdings or quarterly estimated payments. By comparison, there’s generally a tax bill when you haven’t paid enough.

Filing season numbers will ‘even out’

Although the average refund is currently smaller, “historically, filing season numbers even out as more tax returns come in,” according to the agency.

As of Feb. 14, the IRS received roughly 33 million individual tax returns of the more than 140 million it expects before the April 15 deadline.

As of Dec. 27, 2024, the average tax refund for the 2024 season was $3,138, compared to $3,167 in late December 2023.

‘Don’t call the IRS’ for refund updates

The latest filing statistics come amid mass layoffs for the agency as Elon Musk’s so-called Department of Government Efficiency, or DOGE, continues to cull the federal workforce.

It’s unclear exactly how the staffing reduction could impact future taxpayer service. But experts recommend double-checking returns for accuracy to avoid extra touch points with the agency.

“Don’t call the IRS looking for your refund,” said Tom O’Saben, an enrolled agent and director of tax content and government relations at the National Association of Tax Professionals.

You can check the status of your refund via the agency’s “Where’s My Refund?” tool or the IRS2Go app, which is “available 24 hours a day,” O’Saben said.

Typically, the agency issues refunds within 21 days of a return’s receipt. But some returns require “additional review,” which can extend the timeline, according to the IRS.