The Most Important Retirement Account You Haven't Opened Yet

You’re saving for your future. You have a 401(k) and IRAs. Maybe you’ve even talked to a financial advisor about your retirement strategy.

But do you have a truly accurate picture of the Social Security benefits you’ll receive in retirement? With an online my Social Security account, you can get an estimate of your benefits based on your real-time earnings—not just guesswork. And that’s an essential cornerstone to build around, because for most Americans, Social Security represents one of their largest retirement assets. With accurate Social Security expectations, you’ll be able to make better retirement planning decisions.

Signing up is quick, free and easy, and will benefit your retirement planning. Here’s how to do it.
 
What Is a “my Social Security” Account?
This online account provides you with 24/7 access to your Social Security information, including the ability to personalize estimates of future benefits based on your actual earnings. You’ll also see how much in disability benefits you may receive in the event you become disabled, as well as the survivor benefits your family may be able to claim after your death. Having this info at your fingertips can help you figure out if you need to ramp up your savings based on your own retirement timeline.

Who Is Eligible for a my Social Security Account?
If you’ve got a Social Security number, you can get a my Social Security account. You can even open accounts for your young children, to monitor them for fraud and identity theft.

What Can I Do with a my Social Security Account?
You can get an estimate of the amount of Social Security benefits you’ll receive monthly at early retirement (age 62) or full retirement (age 66 for those born after 1942). Having a my Social Security account makes it easier to actually claim Social Security benefits through the online portal. And if you’re already receiving Social Security benefits, you can manage them online from the comfort of your home. You can also request proof of benefits and ask for a replacement Medicare card via the portal.

I’m Years Away from Retirement, Do I Really Need a my Social Security Account?
Even if your retirement is decades away, a my Social Security account displays a year-by-year record of your earnings. Since your benefits are based on your earnings, it’s important to make sure that the government has the correct number every year, or you may not receive all the benefits you’re entitled to. You only have a little over three years to correct the mistake with the government before it becomes a permanent record.

Can a my Social Security Account Help with Retirement Planning?
Most people don’t have a traditional pension, so retirement income often comes from a combination of investments, personal retirement savings, and Social Security. Knowing what you might expect in Social Security benefits will inform your savings strategies throughout your lifetime. Knowing exactly how much your family will receive in survivor benefits can also put people at ease. 

How Often Should I Look at my Social Security Account?
Check your account summary annually (pinning it to tax season may be a helpful reminder to check the account) to double-check your earnings record and correct any mistakes. Doing so can also help protect you from a new wave of financial fraud: Hackers have been known to claim other people’s Social Security benefits for themselves. By creating a my Social Security account, you’re adding a safeguard to your Social Security benefits. And by monitoring it regularly, you’ll be able to see if anyone has been trying to cash in on your hard-earned benefits.  

Maridel Reyes is a journalist based in New York. Her work has appeared in Forbes, Bloomberg Businessweek, the New York Post, USA Today and the Boston Globe.

Looking for ways to supplement your Social Security benefits? Consider a Synchrony Bank IRA CD.