Social Security benefit amount $650 lower than SSA's online estimate - why the huge discrepancy?

There are several reasons your actual benefit might be lower than the estimate. The most common are: 1. The calculator assumed maximum earnings for years where your earnings weren't yet recorded 2. The estimate didn't account for Windfall Elimination Provision (WEP) if you had a government pension 3. The estimate used incorrect FRA for your birth year 4. You had recent earnings that weren't included in your calculation I recommend requesting a detailed benefit calculation from SSA. Call and specifically ask for a PEBES (Post Eligibility Benefit Explanation Statement). This will show exactly how they calculated your PIA (Primary Insurance Amount). $650 is a significant difference and deserves explanation.

the same exact thing happened to me!!! my estimate online said $3,280 but my actual benefit came in at $2,795!!! when i called they said something about the estimate not accounting for "month of election" or something like that. i gave up trying to understand it tbh. they make it SO CONFUSING on purpose i swear.

The SSA online calculator is notoriously optimistic in its estimates. One thing to check - did you have any years of zero or very low earnings in your lifetime? The calculation uses your highest 35 years of indexed earnings, but the online calculator sometimes makes assumptions about those earnings that don't match reality. Also, if you're only 68 and not yet 70, you're not getting your maximum possible benefit. The statement might have been showing your age 70 amount, which could explain some (though probably not all) of the difference. You absolutely have the right to request a detailed explanation of your benefit calculation. Ask specifically for a breakdown of the AIME (Average Indexed Monthly Earnings) calculation and how they determined your PIA.

Ugh, I tried calling SSA four times last week about a similar issue with my retirement benefits calculation. Each time I waited over an hour before getting disconnected or giving up. Absolute nightmare. I finally used Claimyr (claimyr.com) and got through to an agent in about 10 minutes. They have this service that connects you directly to SSA without the wait. They have a video demo at https://youtu.be/Z-BRbJw3puU that shows how it works. Saved me hours of frustration and the agent I spoke with was actually helpful with my benefit calculation questions. Definitely worth it when you need actual answers about something as important as a $650 monthly difference!

Did you work for state or local government at any point? Or railroad? The WEP (Windfall Elimination Provision) can reduce your SS benefits if you receive a pension from work where you didn't pay SS taxes. The online calculator doesn't know about non-covered employment so it won't show this reduction. My husband's benefit was reduced by about $400/month because of WEP from his years teaching in California. The online estimate never showed this reduction.

Hey there! I just wanted to say that the EXACT same thing happened to me last year! The benefits I got were like $500 less than what the calculator said I would get. I was LIVID!! When I called they gave me some BS about "the calculator is just an estimate" and I was like "then why even have it if it's so far off?!" Never did get a straight answer. Still annoyed about it.

You should ask for a detailed benefit computation. By law, they have to provide you with a breakdown showing exactly how your benefit was calculated. The rep you spoke with should have offered this instead of dismissing your concerns. Also, check your earnings record on the MySocialSecurity portal to make sure all your earnings are correctly recorded. Even one missing year can significantly impact your benefit amount. Lastly, verify whether you're subject to any reductions like the Retirement Earnings Test if you're still working, or any government pension offsets. Neither of these would be reflected in the online estimate.

After reading through all these comments, it sounds like SSA's online tools are basically useless for serious financial planning. How are we supposed to make retirement decisions with such wildly inaccurate information? I've been planning based on those estimates too and now I'm worried my actual benefit will be way off as well. Please update us after you get that detailed explanation - I'm really curious what they say.

oh and btw dont feel bad about not reaching 70!! i tried to wait too but had to file at 67 and a half. life happens!!! the 8% per year thing sounds great but when you actually NEED the money its a different story. hope you get answers on the calculation thing!