Social Security Analytics FAQs

How is beneficiary future monthly retirement income estimated?

In our analysis model, monthly retirement income is the sum of monthly Social Security retirement benefit and any retirement savings withdrawal. Monthly retirement savings withdrawal is determined by the amount monthly retirement expenses exceeds the monthly Social Security benefit. If the Social Security benefit exceeds retirement expenses in a given month, the difference is added to retirement savings.

How are beneficiary future annual earnings estimated?

To estimate future annual earnings, we start with the beneficiary's most recent annual earnings. This amount is increased (decreased) each year out to the beneficiary's stop work month using the Social Security Administration's estimates for future annual percentage changes in the National Average Wage Index (AWI). Learn more about Social Security Administration AWI estimates.

How are beneficiary future monthly retirement expenses estimated?

To estimate the beneficiary's future monthly retirement expenses, we start with your Monthly Retirement Expenses analysis assumption which is an estimate of retirement expenses in today's dollars. We then increase monthly expenses based on your Social Security Benefit Cost of Living Adjustment analysis assumption.

Why is an annual earnings history required?

We use the annual earnings history you enter to estimate the beneficiary's future Social Security benefits. The Social Security Administration uses a set of rules based on a beneficiary's lifetime annual earnings to determine monthly retirement benefit.

Where can I get a Social Security statement?

You can download a Social Security Statement from the Social Security Administration website. To do this, you will need a Social Security Account.

1. Either create a new or log into your existing Social Security Account.
2. Once you are logged into your Social Security Account, click the "Your Social Security Statement" link on the Social Security Account home page.
3. Finally, on the "Your Social Security Statement" page, click the "Download Statement Data as an XML file" link. This is the file you can upload through the Beneficiary form.

Important: A Social Security Statement DOES NOT contain the beneficiary's Social Security number. You can view the content of this file with any text editor (Windows Notepad for example) as it is human readable. We do not retain this file or any of its contents. We only use the earnings data in the file to estimate your Social Security retirement benefit.

Why do you need information about my retirement savings?

In order to determine the best month(s) for a beneficiary to start Social Security retirement benefits, we need to incorporate any retirement savings into the analysis. Retirement savings can provide some of the beneficiary's total retirement income and therefore delay the month benefits are started. Alternatively, if the beneficiary is able to save a greater amount, total retirement income could be increased by starting benefits earlier and reinvesting excess retirement income.

Where can I find information about retirement savings?

You can find information about retirement savings (401k, 403b, IRA, or other non-taxable/taxable retirement accounts) - including current values - on account statements. Many asset management companies like Fidelity, Vanguard, BlackRock, Schwab and banks offer access to accounts, including statements, through online accounts.

How is the "Estimate" for the (future) Return on Retirement Savings assumption calculated?

To calculate this estimate, we use the stock, fixed income, short term and other retirement investment values you enter for the beneficiary and the historical average rate of return for the corresponding investment categories (stock, fixed income, short term, other) to calculate a weighted average rate of return.

Which expenses should I include in Monthly Retirement Expenses assumption?

To estimate future monthly retirement expenses, start with the greatest expenses. For most people, mortgage payment or rent is usually the greatest expense. Transportation costs - for example a car payment - are also typically a significant amount. You should also consider health care, taxes (Federal, state, and local including property taxes), insurance, utilities, food (including dining out), and leisure (travel, vacation accommodations).

In general, retirement expenses are typically between 55% and 80% of current income, with those at the higher end of the income range spending a lower percentage. You can use this percentage rule of thumb as a rough estimate. Keep in mind the farther out the beneficiary is from retirement, the less accurate the estimate will be. When you estimate, be conservative - don't underestimate retirement expenses.

As part of our benefit start model, we provide an analysis assumption sensitivity analysis. This allows you to see how different starting retirement expense estimates impact benefit start months.

What is Analysis Assumption Sensitivity?

Analysis Assumption Sensitivity is a graphical representation showing how your retirement income, expenses, and end of retirement savings change when your analysis assumptions change.