Determining the amount of your Social Security retirement benefits can be confusing, but here's how to find out.

• Social Security is a major source of income for most retirees.
• Few individuals are aware of the full extent of the income they might receive from the program.
• Here's how to access your Social Security retirement benefit estimate.

For most retirees, Social Security benefits is a major source of income.

According to new research from the National Institute on Retirement Security, only 11% of Americans who are not retired know the exact amount of benefits they will receive.

According to research based on an October survey of over 1,200 individuals aged 25 and up, 24% are "not very sure" of their benefit amounts and 22% say they have no idea about their benefits.

According to NIRS, women are less likely than men to have a clear idea of their future monthly Social Security income.

In 2024, approximately 68 million Americans will receive a monthly Social Security benefit of about $1,918 on average, totaling around $1.5 trillion in annual benefits paid out.

It is not necessary to be close to retirement to estimate your potential Social Security benefits.

How to get your Social Security benefit estimate

The Social Security Administration offers detailed statements to assist workers of all ages in evaluating their benefits.

Individuals aged 18 and above can access their records online by creating a "My Social Security" account, as per the agency. Those aged 60 and above who do not have online accounts will still receive paper statements via mail. All individuals have the option to request paper statements.

According to Tyler Bond, research director at NIRS, workers can access their future benefit estimates on the Social Security Administration website by logging into their own account.

According to Bond, it appears that many workers lack a clear understanding of the personal benefits they will receive from Social Security.

What your online statements will tell you

It is crucial for individuals aged 62 to 70 to examine their Social Security statement to determine how annual cost-of-living adjustments impact their monthly benefit payments, as advised by Joe Elsasser, a certified financial planner and the president of Covisum, a Social Security claiming software company.

It's still beneficial for younger workers to verify statements.

"According to Elsasser, the best way to consider Social Security is by asking what living standard it would offer if you continue to work and receive wages that keep up with inflation. This is what the Social Security statement implies."

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How much of your income may be replaced by Social Security in retirement?

If you're currently earning around $6,000 a month, and your Social Security statement shows an estimated $2,000 monthly benefit, about one-third of your pre-retirement income may be replaced by Social Security benefits, according to Elsasser.

The cost of living in New York City is higher than in other cities in the United States.

If your earnings history is less than 35 years, the estimated benefit may change significantly, as even one additional year of higher wages can have a considerable impact, Elsasser stated.

According to Jim Blair, vice president of Premier Social Security Consulting and a former Social Security administrator, the closer someone is to age 62, the more accurate it becomes.

What to watch out for

To ensure accuracy in your earnings history, it is crucial to review your Social Security benefit statements.

It's wise to review your Social Security statement annually to ensure your wage history is accurate, advised Blair.

Though mistakes can occur, he stated that the records are generally accurate.

""If earnings are missing or incorrectly posted, you can fix it promptly, and the earlier you catch it, the easier it is to fix it," Blair stated."

You can visit your local Social Security Administration office with your W-2 form (or Schedule SE if you're self-employed) to have your earnings record corrected, Blair advised. (To schedule an appointment or get help by phone, call 1-800-772-1213.)

The SSA acknowledges that there are various forms of proof that can be used to verify earnings, such as tax returns, wage stubs, pay slips, personal wage records, or other documents. If you do not have paper proof, the agency will still investigate based on the facts you remember.

Account holders should be cautious of fraud while updating their online accounts as instructed by the Social Security Administration during a system transition.

The SSA warns that emails may attempt to trick people into clicking on fake links that are not associated with the agency, with the goal of stealing personal information.

Instead of clicking on email links, it is more important to enter "SocialSecurity.gov" or "SSA.gov" in the search address bar before entering any information, Elsasser advised.

As Social Security's trust funds dwindle, beneficiaries may worry about not receiving benefits upon retirement. However, Congress will likely make changes to safeguard the program. Nonetheless, younger workers who contribute through payroll taxes should anticipate receiving some benefits, Elsasser stated.

"Elsasser stated that it is reasonable to anticipate a benefit reduction for younger individuals. However, assuming that there will be no benefit cut at all is an incorrect assumption."