I ENTERED ANNUAL EARNINGS INTO SOC SEC WEBSITE AND IT GENERATED AN ESTIMATE. IS IT A RELIABLE TOOL TO USE?
Which tool did you use?
If you used the normal Retirement Estimator, and have a pension from work not covered by Social Security, you CANNOT depend on this calculation for an accurate benefits estimate.
Instead, you should use the WEP version of the Online Calculator. This is because those with a pension from non covered employment changes how your Social Security benefit is calculated.
With either of these calculators, you should know that the SSA assumes that your future earnings will closely resemble your current earnings. If earnings change, so will your projected benefit.
For a more in depth look at how your benefit amount is calculated, check out my video How To Calculate Social Security Benefits.
I hope this help you!
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