Is it possible to estimate my future social security benefits?

Ralph Estep Jr.:
00:00

Have you ever wondered how much you'll receive from Social Security when you retire? Well, stay tuned to find out how you can estimate your Social Security benefits and plan for a financially secure retirement. What if I told you you could peek into your financial future and see exactly how much money you'll have waiting for you in retirement? Well, today we're going to show you how to do just that with your Social Security benefits.

Ralph Estep Jr.:
00:31

Before we jump into today's topic, let's take a quick look back at yesterday's show. We discussed the importance of emergency funds and how to build one that aligns with biblical principles of stewardship and preparedness. Find all of our previous shows at AskRalph.com.

Ralph Estep Jr.:
00:51

Now let's get to today's burning question. But first, I want to share a message from one of our listeners. This comes from Daniel in Boise, Idaho. Daniel writes this: "Dear Ralph, I've been listening to your show for months now, and it's been a true blessing in my life. Approaching my 50s, retirement is starting to feel more real than ever. I hear you, my friend. I'm not that far from you. I know Social Security will be a part of my retirement income, but I have no idea how much I can expect to receive. Ralph, is there a way to estimate my future Social Security benefits? And how should I approach this as a Christian? Thank you for your guidance, and God bless you." Well, thank you, Daniel, for your thoughtful question. That's one I'm sure resonates with many of my listeners.

Ralph Estep Jr.:
01:35

Before we dive into the answer, I'd like to share a relevant Bible verse that I feel speaks to the heart of this matter. Proverbs 21:5 says this: "The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty." This verse reminds us of the importance of planning and diligence in our financial lives. Just as we plan for our financial growth, we also need to plan for our financial future. And that's exactly what we're going to talk about today: how to estimate your Social Security benefits and use that information to make a plan for a secure retirement.

Ralph Estep Jr.:
02:20

Welcome faithful listeners to another enlightening episode of the Ask Ralph show, mastering your finances from a Christian perspective. I'm your host, Ralph, and I'm thrilled to have you join me today as we dive into the world of finance, coupled with faith. Let's address Daniel's question head-on: Is it possible to estimate your future Social Security benefits? The short answer is yes, absolutely. In fact, the Social Security Administration provides tools to help you do just that.

Ralph Estep Jr.:
02:48

Before we dive into the specifics, let's take a moment to understand why this is so important. You see, Social Security is like a financial safety net that we've been weaving throughout our working lives. Each paycheck, a portion of our earnings goes into this net. And when we reach retirement age, that net is there to catch us and provide a steady stream of income. But here's the thing: the size and strength of that net depend on various factors, including how much we've contributed over the years and when we choose to start receiving those benefits.

Ralph Estep Jr.:
03:20

You might ask, "Ralph, how can you estimate your future benefits?" Well, the Social Security Administration offers a fantastic tool. It's called the Retirement Estimator. You can find this on their website at SSA.gov. This tool uses your actual Social Security earnings record to provide a quick and reliable estimate of your future benefits. I'll put a link to it in the show notes.

Ralph Estep Jr.:
03:44

Now, I can almost hear some of you thinking, "Ralph, that sounds great, but I'm not very tech-savvy. Is there another way?" Well, don't worry, my friends. The Social Security Administration has got you covered. They also provide annual Social Security statements to any worker aged 60 and older who isn't receiving benefits and doesn't have a My Social Security account. These statements provide estimates of your future benefits based on your earnings records. One thing you want to keep an eye on.

Ralph Estep Jr.:
04:10

But here's where it gets really interesting: the amount you receive in benefits can vary significantly depending on when you choose to start receiving them. You can start receiving retirement benefits as early as age 62 or as late as age 70. The longer you wait, the higher your monthly benefit will be. You'll find a few past shows on this very issue; again, check them out at AskRalph.com. Let me give you an example. Let's say your full retirement age is 67 and your monthly benefit at that age would be $1,000 a month. If you choose to start receiving benefits at age 62, your monthly benefit will be reduced to about $700. But if you wait till age 70, your monthly benefit could increase to about $1,240. That's a difference of $540 per month just from waiting from 62 to 70.

Ralph Estep Jr.:
04:59

And some of you might be thinking, "Ralph, so far so good, but how do I decide when to start taking my benefits?" Well, my friends, that's where things get a bit more complex, to be honest, and it's a decision that requires careful consideration of your individual circumstances. The factors to consider include your health, your general family longevity—how long do people live in your family?—other sources of your retirement income, whether you plan to work in retirement, and your overall financial needs. It's also important to consider your spouse's benefits, as there are strategies for married couples to maximize their combined benefits.

Ralph Estep Jr.:
05:35

But here's something crucial to remember: Social Security is an important part of retirement planning. It shouldn't be your only source of retirement income. On average, Social Security replaces about 40% of your pre-retirement income. Most financial advisors suggest you need 70 to 80% of your pre-retirement income to maintain your current standard of living in retirement. You might be asking, "What does that mean for me?" It means that while estimating your Social Security benefits is important, it's just one piece of the retirement planning puzzle. You should also be saving and investing for retirement through other means such as 401(k)s, IRAs, and personal savings.

Ralph Estep Jr.:
06:15

Now let's talk about how we can approach this from a Christian perspective. As believers, we're called to be good stewards of all that God has entrusted to us, including our finances. The book of Proverbs 27:23, tells us: "Know well the condition of your flocks, and give attention to your herds." While this verse is talking literally about flocks and herds, like the Black Angus I have out here on the farm, we can apply this principle to our finances as well. Estimating your Social Security benefits and planning for retirement is a way of knowing the condition of your flocks. It's about being aware of your financial situation and planning for the future. It's an act of stewardship and an act of responsibility.

Ralph Estep Jr.:
06:59

But here's where the faith comes in. While we plan and prepare, we also trust in God's provision. The book of Matthew 6:26, reminds us: "Look at the birds of the air: they neither sow nor reap nor gather into barns, and yet your heavenly Father feeds them. Are you not of more value than they?" This verse doesn't mean we shouldn't plan or save; rather, it reminds us that as we plan, we should do so with faith and trust in God. That's the key. We prepare for the future, but we hold those plans loosely, knowing that ultimately, our security comes from God, not from our bank accounts or Social Security benefits down the road.

Ralph Estep Jr.:
07:38

So here are some actionable steps you can take based on what we discussed today. Step one: visit the Social Security Administration's website at SSA.gov and use their Retirement Estimator to get an estimate of your future benefits. Now, you're going to have to create an account there. They do use the ID.me system now, so take time and do that. I did a show about ID.me as it relates to the IRS, and it's very similar. Step two: if you're 60 or older and not receiving benefits, look out for your annual Social Security statement in the mail. It's like mail comes in from SSA; it's a green thing as far as I can remember. You can call them if you don't have one or go online and request one.

Ralph Estep Jr.:
08:14

Step three: consider creating a Social Security account on the SSA website. We kind of talked about that a moment ago. This will allow you to access your Social Security statement online at any time, and it's something I definitely think you should do. You should go make sure they're showing all of the work that you've done for the last 40 years and make sure they're giving you credit for all that on their statement on their website. Now, step four: use the information from your estimate to start planning for retirement. Remember, Social Security should just be one part of your retirement income strategy; it shouldn't be the whole thing.

Ralph Estep Jr.:
08:46

Step five: if you're nearing retirement age, consider consulting with a financial advisor to discuss when it might be best for you to start claiming benefits. Look, this is a crucial thing to discuss with a professional. If you're interested, you can certainly schedule a consultation with me right at AskRalphPodcast.com/store. There are things we can talk about, and I can help you along that process.

Ralph Estep Jr.:
09:07

Now step six: start or continue saving for retirement through other means, not just Social Security. This is where you're going to use your 401(k)s, IRAs, or other personal savings accounts. And step seven, and this one is the biggest one: pray for wisdom as you make these important financial decisions. Remember this: God cares about every aspect of our lives, including our finances. This is why I do the Ask Ralph show. Now, I know we've covered a lot of ground today.

Ralph Estep Jr.:
09:35

So let's do a quick recap. We've learned that yes, it is possible to estimate your future Social Security benefits using tools provided by the Social Security Administration. We discussed the importance of considering when to start taking benefits and how this decision can significantly impact your monthly payments. We talked about 62 versus 70. Remember we had that $540 difference. We also talked about the need to use Social Security as just one part of a comprehensive retirement plan and how we can approach all of this from a Christian perspective of stewardship and trusting God.

Ralph Estep Jr.:
10:10

Remember, planning for retirement is not just about securing our own future. It's about positioning ourselves to continue being a blessing to others and furthering God's Kingdom even in our later years. By being diligent in our planning and wise with the resources, we can ensure that we remain financially stable and capable of giving and serving well into our retirement years.

Ralph Estep Jr.:
10:33

Well, before we wrap up, I want to remind you all that tomorrow's show will be tackling another important topic: how do I respond to financial trials and uncertainty by using my faith? It's a subject that I'm sure will resonate with many of you, so be sure to tune in.

Ralph Estep Jr.:
10:47

And now it's time for our call to action. If you found value in today's episode, I encourage you to visit our website at AskRalph.com. There, you can join our community and share this episode with others who might benefit from this information. And here's the most exciting part: when you join our email list, you'll receive a free copy of my book, "Mastering Your Finances Now." This book normally sells for $10 on Amazon, but it's yours absolutely free when you join our community. It's my way of saying thank you for being a part of our financial and faith journey.

Ralph Estep Jr.:
11:18

And please do me a huge favor: keep those questions coming. The whole point of Ask Ralph is to address your real-life financial concerns and questions. So don't be shy. Send in those questions, and who knows? Your question might be featured on a future episode.

Ralph Estep Jr.:
11:33

As we close, I want to leave you with this thought: just as we plan and prepare for our financial future, let's also invest in our spiritual future. Let's store up treasures in heaven where moth and rust do not destroy and where thieves do not break in and steal. Because as the Bible says, "For where your treasure is, there your heart will be also." Well, thank you for tuning in to today's episode. Remember to stay financially savvy, and may God bless you all abundantly.