What Will Your Retirement Income Be?
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What Will Your Retirement Income Be?
The first step to finding out whether your retirement portfolio is on track is determining what your regular retirement income will be, excluding your income from your own savings.
Things To Know
- Request a Personal Earnings and Benefit Estimate Statement from the Social Security Administration.
- Some plans will update you regularly about your benefits as you near retirement.
Starting with Social Security
Request a Social Security Statement (Form SSA-7004 (call 800-772-1213 or visit www.ssa.gov) to find out what you can expect each month from Social Security. Some people already receive this yearly, but if you haven’t seen it yet, submit the form (which you can download or request over the phone), and the Social Security Administration will send you a list of estimated benefits, including your monthly retirement check in today’s dollars. (Remember that Social Security benefits rise with inflation.)
If your Social Security benefits seem too skimpy, they may be. Not reporting name changes, using a name other than the one on your Social Security card, or entering an incorrect Social Security number can lead to inaccurate benefits calculations. Troubleshoot by checking your benefits every few years.
Next, your retirement plans
Projecting what your retirement or pension plan will provide requires more legwork.
First, know the reasons behind your expected future payments. Defined-benefit plans, such as a pension, often are linked to Social Security payments; consequently, a fatter Social Security benefit could mean a slimmer pension check.
Second, be persistent about seeking information. Some plans will update you regularly about your benefits as you near retirement. Others aren’t as accommodating. Pester your employer’s human resources department for more information. If you get the run-around, turn to Washington. Call the Employee Benefits Security Administration (866-444-3272) to find the Department of Labor office in your area.
Finally, don’t overlook those pensions owed you from brief employment stints or from companies that have merged out of existence or gone belly up. Check the Pension Search Directory online to discover whether you’re one of the thousands of people who haven’t claimed forgotten pensions.
