The Social Security website says I can expect to get $4k per month when I retire – is that really true?

Once you retire, Social Security might end up becoming a pretty significant income source for you. So it’s helpful to know how much money to expect from it. And the good news is that there’s a pretty easy way to figure that out ahead of time.

If you create an account on the Social Security Administration’s website, you can pull up a copy of your most recent earnings statement. That statement should include a summary of your recent wages as well as an estimate of your future monthly benefit.

In this Reddit post, we have someone who’s logged into their Social Security account for the first time to see that they have 20 years of contributions into the program. Their estimated monthly benefit at their full retirement age (FRA) of 67 is $4,000. And they want to know whether that number is accurate.

The answer is, it’s a good starting point. But that number could wiggle based on a number of factors. And it’s important to understand what those are.

How your monthly Social Security benefit is determined

Social Security benefits are calculated based on a couple of factors — your wage history and your filing age. Specifically, the Social Security Administration takes your 35 highest-paid years of income into account when calculating your retirement benefit.

If you have a 20-year work history, it means you might still have half of your career ahead of you. If your wages rise in accordance with what Social Security estimates, then you may find that you are, indeed, eligible for $4,000 a month at your FRA of 67.

But if your wages don’t increase or decrease over the next 20 years — say, because you move into a lower-paying career — then your Social Security benefit at 67 might end up coming in lower.

Of course, it’s also possible that your wages will increase at a faster rate than expected. If you earn a lot more over the second half of your career, then you may find that by age 67, you’re entitled to more than $4,000.

Your filing age will also play a role in dictating what monthly benefit you’re able to collect. If you wait until FRA, your retirement benefits won’t be reduced. But if you file for Social Security early, which you can do starting at age 62, then you’ll receive smaller payments each month.

There’s also the option to delay your Social Security claim past FRA. For each year you hold off, until age 70, your benefits get boosted by 8%.

The closer you are to retirement, the more accurate your estimate is

It’s definitely a good idea to get an estimate of your future Social Security benefit ahead of retirement. But you should also know that the closer you are to the end of your career, the more spot-on the Social Security Administration’s estimate is likely to be.

So once you’re at that point, it’s a good idea to think through different filing scenarios, since the age you claim benefits at will help determine how much monthly income you get. By that point, you can also see what your retirement savings look like, and you may have a good sense of what your ongoing expenses will amount to.

If you’re not sure when to claim Social Security, though, then it’s a good idea to consult a financial advisor. They can walk you through different scenarios and help you understand the implications of each filing age you may be considering.

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