Benefits estimator unveiled

WASHINGTON (AP) — People planning for retirement got a new tool this week: a fast and easy online estimator for their Social Security benefits.

The Social Security Administration unveiled a new retirement estimator — http://ssa.gov/estimator/ — on its Web site Monday. On it, it takes just a few points and clicks and some personal information to produce benefit estimates within a few minutes.

The new calculator will be followed this fall by an updated online application for benefits that Social Security Administrator Michael Astrue promises will reduce application time from the current 45-minute process to 15 minutes — and eliminate the need for follow-up visits to agency field offices.

Currently, workers get an annual benefit estimate mailed to them. It’s based on prior earnings but assumes people’s salary stays the same until retirement age. The online calculator supplements the annual mailing but won’t replace it.

The online calculator permits future retirees to create a more accurate estimate of benefits since people can factor in a higher estimate of their upcoming earnings. People can also factor in various alternatives for retirement ages.

The calculator replaces a laborious online calculator that required people to type in their earnings history, which can involve guesswork for people who don’t keep voluminous records. The new version uses the Social Security database to provide accurate earnings information, though the calculator requests the most recent year of earnings since there’s a lag in getting salary information into the Social Security database.