Social Security Benefits Reduced

[Lorrieduke]

I just recieved my 2010 SS statement. My benefits for retirement at ages at 62, 66 and 70 have been reduced and I don't understand why. I was employed for the entire year and paid into SS so shouldn't my benefit be more than the previous year? Can someone please help me to understand?

Thank you very much. Any help would be appreciated.

[Scott67]

Well, just to be clear, your benefits haven't been reduced - because you are not receiving benefits. What you are talking about is the annual estimate of what your benefits will be is less than the estimates were last year. Your actual benefit will be based on your 35 highest indexed earnings years.

There are a number of things that play into the calculation of the estimate so no one can definitively answer why the estimate decreased without knowing detailed specifics about your earnings history for social security purposes (the earnings on which you've paid in). If the difference was large, you may want to contact SSA to discuss it. If the difference was small, it is likely that the most recent number is the closest to accurate, since they have improved the calculations over time.

For another guesstimate on what the number might be, you can use the calculator at the SSA website. I think it gives a better estimate than the annual reports used to.

http://www.ssa.gov/estimator/

[Lorrieduke]

Thank you and yes you are right. I am talking about the annual estimate of what my benefits may be. It just threw me for a loop because every one of my annual estimates to date have reflected an increase from the previous years estimate. This is the first year I've noticed the opposite. I don't have a problem in stating what my SS wages were for the last several years if that might help you help me. I appreciate your quick reply and if you have anything further to add that would be great! Thanks again.