Social Security Analytics FAQs

What is Social Security Benefit Start Analysis?

Social Security Benefit Start Analysis is the process of finding the Social Security benefit start strategy (start month) that maximizes the value of your household retirement income subject to retirement expenses. learn more

How can I factor a future Social Security benefit cut into my analysis?

You can factor in a future Social Security benefit cut through the benefit settings page. Enter the start year and the percentage cut in benefits and save your changes. Note that the benefit cut will be applied to all types of Social Security benefits - retirement, spouse, and survivor. The cut starts in January of the benefit cut start year you enter.

How can I limit the range of benefit start months considered in my analysis?

You can limit the range of Social Security retirement benefit start months for both primary and spouse household participants through the benefit start analysis settings page. Enter values for either or both the earliest benefit start month and/or the latest benefit start month and save your changes. Note the minimum and maximum start month values apply only to Social Security retirement benefits and NOT spouse benefits.

How are the analysis period start and end months determined?

The analysis period start month is The earliest month in which either the primary or spouse is eligible to begin Social Security retirement benefits, or, if that month falls before the current (analysis) month, then it is set to the month following the analysis start (current) month.

For example, if Bob becomes eligible in November 2032 and Mildred in April 2034, and the current month is July 2025, then the analysis start month is November 2032 (the earliest eligibility). If the current month is February 2035, then the earliest eligibility has already passed, so the analysis start month becomes March 2035 (one month after the current month).

The analysis period end month is the latest of the primary and spouse end of life month/year. For instance, if the primary's end of life is December 2055 and the spouse's is June 2057, the analysis period will end in June 2057.

How is household monthly retirement income estimated?

In our analysis model, monthly household retirement income is the sum of monthly Social Security retirement benefits, retirement savings withdrawals, and work earnings for the primary and spouse. Monthly retirement savings withdrawals are determined by the amount monthly retirement expenses exceed monthly Social Security benefits and work earnings. If retirement income exceeds retirement expenses in a given month, the difference is added back to retirement savings or outstanding debt paid down. If retirement expenses exceed retirement income and the household has a credit line, the model will draw from the household's credit line (if the credit limit has not been reached) to make up the deficit. Note the default credit limit is $0 (no borrowing).

How are primary and spouse future annual earnings estimated?

To estimate future annual earnings, we start with the individual's most recent annual earnings. This amount is increased (decreased) each year out to the individual's stop work month using the future annual earnings growth you set on the primar and spouse.

Why is an annual earnings history required?

We use the annual earnings history you enter to estimate the beneficiary's future Social Security benefits. The Social Security Administration uses a set of rules based on a beneficiary's lifetime annual earnings to determine monthly retirement benefit.

Where can I get a Social Security statement?

You can download a Social Security Statement from the Social Security Administration website. To do this, you will need a Social Security Account.

1. Either create a new or log into your existing Social Security Account.
2. Once you are logged into your Social Security Account, click the "Your Social Security Statement" link on the Social Security Account home page.
3. Finally, on the "Your Social Security Statement" page, click the "Download Statement Data as an XML file" link. This is the file you can upload through the Beneficiary form.

Important : A Social Security Statement DOES NOT contain the beneficiary's Social Security number. You can view the content of this file with any text editor (Windows Notepad for example) as it is human readable. We do not retain this file. We only use the earnings data in the file to estimate your Social Security retirement benefit.

Do I need to enter a retirement savings account for each account in the household?

If you have multiple tax-deferred retirement accounts and both a primary and spouse in the household, then, yes, you should enter information for each account. The reason is how our model handles tax-deferred retirement accounts. The model only allows contributions to this type of account prior to your stop work month/year and withdrawals can start only once you reach the required age that doesn't have a tax penalty. For taxable accounts, the model does not impose these restrictions. If you combine tax-deferred and taxable accounts, the model's results will be incorrect.

If your household includes only a primary or one of the household members has no accounts and the accounts are either all tax-deferred or all taxable accounts then you can combined these accounts into one account.

Why do you need information about my retirement savings?

In order to determine the best month(s) for a beneficiary to start Social Security retirement benefits, we need to incorporate any retirement savings into the analysis. Retirement savings can provide some of the beneficiary's total retirement income and therefore delay the month benefits are started. Alternatively, if the beneficiary is able to save a greater amount, total retirement income could be increased by starting benefits earlier and investing excess retirement income.

Where can I find information about retirement savings?

You can find information about retirement savings (401k, 403b, IRA, or other non-taxable/taxable retirement accounts) - including current values - on account statements. Many asset management companies like Fidelity, Vanguard, BlackRock, Schwab and banks offer access to accounts, including statements, through online accounts.

Do I need to add a retirement expense for all my individuals expenses?

No. You can combine all your expenses into a single retirement expense, with the amount representing the sum total of all your monthly expenses and the expense growth reflecting your estimate of the average growth rate of all your expenses.

How are household monthly retirement expenses estimated?

To estimate household future monthly retirement expenses, we start with the retirement expenses you enter in today's dollars. We then increase monthly expenses based on the estimated growth you enter for your expenses.

Which expenses should I include in monthly retirement expenses?

To estimate future monthly retirement expenses, start with the greatest expenses. For most people, mortgage payment or rent is usually the greatest expense. Transportation costs - for example a car payment - are also typically a significant amount. You should also consider health care, taxes (Federal, state, and local including property taxes), insurance, utilities, food (including dining out), and leisure (travel, vacation accommodations).

In general, retirement expenses are typically between 55% and 80% of current income, with those at the higher end of the income range spending a lower percentage. You can use this percentage rule of thumb as a rough estimate. Keep in mind the farther out the beneficiary is from retirement, the less accurate the estimate will be. When you estimate, be conservative. Don't underestimate retirement expenses!