U.S. Social Security Benefit Estimates Can Mislead Retirees

Social Security's online estimator often projects future earnings for six years, assuming the individual will continue working. This can inflate the projected monthly benefit—e.g., a $2,600 estimate at age 67 assumes continued wages—so retirees who stop work early may see their actual benefits reduced by hundreds of dollars per month.

A separate case involved a widow who delayed filing for survivor benefits after being misinformed that early filing would permanently lower the amount. By waiting, she forfeited roughly $50,000 in income over four years. Survivor benefits are separate from retirement benefits, and the “deemed filing” rule does not apply to survivors, allowing them to order claims for maximum value. Experts advise requesting an estimate that assumes zero future earnings and carefully timing both retirement and survivor benefit applications.