My Social Security estimate shows $4k at full retirement age – does that assume I keep working or is it based on past contributions alone?

Despite rumors that Social Security is at risk of disappearing, it’s not in lawmakers’ best interest to let the program go away or even cut benefits. So there’s a good chance Social Security will be there for you when you retire, even if that’s not happening for a good number of years.

But it’s also a good idea to know what to expect from Social Security when you’re older. Many Americans are caught off guard when they realize what little income Social Security provides them with. And once you see how much money you can expect from Social Security, you’ll be able to set a retirement savings goal.

There’s also a pretty easy way to get an estimate of your future Social Security benefit. Just create an account on the Social Security Administration’s website and access your most recent earnings statement.

But it’s equally important to know what goes into your Social Security benefit calculation. And in this Reddit post, we have someone who’s not quite sure.

They’ve gotten an estimate of their future Social Security benefit and see that they may be eligible for $4,000 a month at their full retirement age (FRA) of 67. But they’re wondering if that number is set in stone since they’ve only worked for 20 years.

It’s a good question to be asking. Here’s what the poster — and everyone else — needs to know.

How Social Security benefits are calculated

Social Security takes your 35 highest-paid years of earnings into account when calculating your retirement benefits. Earlier wages are indexed for inflation to make things fair.

When you have a 20-year work history, what Social Security will typically do is estimate your future wages based on your past earnings. So if you see an estimate of $4,000 a month at FRA when you’ve only been working for 20 years, know that that number could change based on whether you continue to work or not, and whether your earnings go up or down.

Remember, too, that Social Security benefits tend to increase over time due to inflation and the program’s cost-of-living adjustments. It can be tricky to get an accurate handle on inflation when you’re many years away from retirement.

So when you get an estimate of your future benefits, allow from some wiggle room. The number may end up being a bit off if you’re only about midway through your career.

Know how to get more Social Security

Ideally, you’ll save up a big pile of money for retirement so you won’t be overly reliant on Social Security during your senior years. But if you feel you’ll need more Social Security, you should know that there’s a pretty easy way to get it.

All you have to do is delay your Social Security claim past FRA. For each year you do, until you turn 70, your benefits are boosted by 8%. And that boost is a permanent one.

That said, delaying Social Security isn’t a smart move for everyone. So what you should do closer to retirement is sit down with a financial advisor and ask for some guidance on when to claim benefits. An advisor will be able to offer their input based on factors that include your savings, expenses, and life expectancy.

In the meantime, keep checking your Social Security account every year to see if your benefit estimate changes. And also, keep track of the earnings data Social Security has on file for you. Underreported income could result in lower benefits during retirement, so it’s important to make sure the wage data that’s on file for you is correct.

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