April is National Social Security Month. It’s really fitting that they chose April, because April is also Financial Literacy Month. And understanding your Social Security situation is an important part of Financial Literacy.
If you’re under 40, you may be surprised to consider that you need to pay attention to Social Security. (Even some people under 60 may be surprised at that idea!). Now I’m not suggesting you need to fully understand Social Security – that’s a tall order. But you do need to be aware of your own social security record and what it means.
The key your record is found at my Social Security. Here you can activate your own on-line account so that you can log in any time; this lets you verify the accuracy of your earnings record, learn what you can expect in retirement or disability benefits, order a replacement social security card, and more.
Why it matters. On average, Social Security replaces approximately 40 percent of pre-retirement earnings. To enjoy a comfortable retirement, most people will also need income from other sources — like pensions, savings, and investments. Understanding your social security projections can help you make informed plans for your own retirement.
Throughout the month of April, the Social Security Administration will boost its outreach through traditional media and social media, including a Facebook Live Chat:
Social Security will participate in a Facebook Live Chat, hosted by USA.gov, on April 20, 2017, at 7:00 p.m. ET. The public may ask questions via livestream about the “5 Steps Toward Financial Security.”
NOTE: some young adults may be skeptical, questioning whether Social Security will still be around by the time they retire. While Social Security will likely change over the next 2-4 decades, you will not find any experts who believe it will disappear. Understanding your situation under current law will help you understand policy changes as they are proposed and enacted. No matter your age, it’s smart to activate your Social Security account and see what it tells you.