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5 Things to Know About Your Social Security Statement

By U.S. News & World Report

The Social Security Administration stopped mailing paper Social Security statements to everyone under age 60 in 2017. Younger people who want to check their earnings history or taxes paid will need to view their statements online. The SSA says more than 30 million people have created a my Social Security account since they became available in May 2012. The agency expects to save $11.3 million in processing and mailing costs in fiscal year 2017 as a result of the change. Here’s why you should take a few minutes to view your benefit statement online.

[Read: 7 Things You Can Do With a My Social Security Account.]

Find out how much you will get when you retire. Most Social Security statements contain an estimate of how much you will receive if you sign up for Social Security at your full retirement age, age 62 and age 70. The full retirement age is 66 for most baby boomers and 67 for everyone born in 1960 or later. “The statement shows clearly that the longer you wait to claim benefits, the more you get each month,” says Jonathan Peterson, executive communications director at AARP and author of “Social Security For Dummies.” “Over time, the difference can be many thousands of dollars. So it makes a lot of sense to look at the projections at different retirement ages and think about what they mean for you.” For example, a worker eligible for $1,680 a month at age 67 would get just $1,159 monthly at age 62, but his benefit would increase to $2,094 each month if he delayed signing up until age 70. However, it’s important to note that these benefit estimates assume Social Security law will remained unchanged and that you will continue to earn your current salary, both of which could change in the future. The statement will also let you know if you have not yet worked long enough to qualify for benefits.

See what happens if you become disabled. Social Security benefits aren’t just for retirees. Your statement will also tell you the benefit amount you will be eligible for if you become disabled in the coming year.

Take note of what your family will get if you die. Social Security pays out benefits to families when a breadwinner passes away. Your dependent children and a spouse caring for those children will likely both be eligible for payments upon your death, and the amount they will get is on your statement. Your spouse may also be eligible for retirement benefits based on your work record, even if you die before retirement. A spouse or minor child may additionally be eligible for a one-time death benefit when you pass away.

[Read: 6 Social Security Calculators That Can Help You Decide When to Claim.]

Check your earnings record. Your Social Security statement typically lists every year you have worked and how much you earned. “Sometimes your income does not get properly reported to Social Security,” says Brian Vosberg, a certified financial planner and author of “The Complete Retiree’s Guide to Social Security.” “Checking annually will help guarantee accuracy.” The 35 years in which you have the highest earnings are used to calculate your retirement payout.

Verify your Social Security and Medicare contributions. Under your earnings chart, the statement lists the total amount you have paid into Social Security and Medicare throughout your career. It’s a good idea to double-check these amounts to make sure you are getting credit for your contributions. Workers are required to pay 6.2 percent of their pay into Social Security up to $127,200 and 1.45 percent of all earnings into Medicare in 2017, which employers match. Self-employed workers pay 12.4 percent of their earnings into Social Security and 2.9 percent into Medicare. And those who earn more than $200,000 ($250,000 for couples) pay an additional 0.9 percent in Medicare taxes.

[See: 6 Social Security Changes Coming in 2017.]

Workers age 18 and older can view their Social Security statement online at any time, although you will need to verify your identity by answering questions about personal information to create an online account. Account holders will need to enter a user name and password as well as a one-time security code sent to their phone or email address each time they log in, due to new security features added to the website in June 2017. “Set up your access like any other financial site, and check your Social Security data any time you want,” says Andy Landis, author of “Social Security: The Inside Story.” “I even have the SSA mobile app, just like mobile banking.”

Emily Brandon is the author of “Pensionless: The 10-Step Solution for a Stress-Free Retirement.”

More from U.S. News

10 Ways to Increase Your Social Security Payments

10 Social Security Rules Everyone Should Know

7 Tips to Live Well on Social Security Alone

5 Things to Know About Your Social Security Statement originally appeared on usnews.com

Update:

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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