How the Social Security Disability Verification Letter Helps
The Social Security Disability verification letter is basically an official letter from the Social Security Administration (SSA). If you are wondering about your monthly Social Security Disability and Supplementary Income earning, this letter can help you big time as it lists the corresponding figures. More importantly, it keeps you in the loop when it comes to your earnings from the SSA. From proving you have never received any benefit from said programs to assisting loans or mortgages, there is every reason why this verification letter is incredibly important. Here are some reasons to get your Social Security Disability verification and use it to your advantage.
#1. Checking Your Benefits
Your verification letter lets you know the amount you will receive each month in case you retire. Of course, this is highly dependent on your lifetime earnings including projected earnings moving forward. It also shows just how much you would receive if you, for some reasons, you become disabled. In a report from the Social Security Administration itself, there are more than one in four 20-year-olds who are likely to become disabled before hitting the retirement age. This is why it is so important to know how much you can get in disability benefits, as it will help you plan accordingly for a major life change. Above anything else, it proves that you have enough insurance to cover your disability.
The closer you get to the retirement age, the more accurate your estimated benefits become. Keep in mind that the actual amount will be determined the moment you apply for benefits. However, there is a chance that it will be quite different from the estimate you see in your verification letter considering that your earnings could either increase or decrease over time.
#2. Confirming Work History
The Social Security Disability verification letter may include a Social Security statement of earnings. The latter shows a portion of your earnings that is subject to Social Security and Medicare taxes, which is computed for each year you have worked. This is where you need to review the information included very carefully. If you notice that the amounts are incorrect, expect not to receive the correct benefit amount as soon as you hit retirement. This is where most individuals make a huge mistake, as they seem not to care about the information they see. Or, worse, they do not bother correcting it with the Social Security Administration. If you require correction of your earnings misinformation, call the Social Security Administration at 800-772-1213 right away. Just remember to get your W-2s and tax returns, as you can use them to support your claim.
#3. Social Security Disability Verification for Your Family’s Benefits
- If you are married and have kids, understand that the benefits you get will significantly affect them. For example, your spouse will only receive payments that are based on your work record and it is up to 50 percent of benefits you get on a monthly basis. As for your dependent children, they may be qualified to receive the same benefits provided they are:
- A full-time student in grade 12 or lower and must be 18 or 19 years old
- Under 18 years old and unmarried
- 18 or older and is disabled from any condition that started before the age of 22
Furthermore, the letter will give you information on how much your other family members will receive based on your work history. You may use this information in planning your financial future as a family.
#4. Planning Your Retirement
This is perhaps the number one reason why being updated with your Social Security Disability verification letter is so important. If you know how much you are going to receive in the future, you can easily plan for retirement (unless, of course, if you get disabled, as it becomes a different story with the SSA). These benefits are specifically designed to replace around 40 percent of your annual pre-retirement earnings. Hence, most individuals are fond of using financial products like the so-called employer-sponsored 401k plan. The latter is used to maximize your total savings, allowing you to live more comfortably when retiring.
In addition, the aforementioned letter shows what you should expect to receive if you decide to start collection benefits at the minimum retire age (62) and full retirement age. The same thing can be said even if you have to wait until 70 just to claim these benefits. You can easily find your full retirement age on your verification letter. In most cases, it ranges from 65 for individuals who are born in 1937 or earlier to 67 years old for those who are born in 1960 or later. Having the ability to know and understand these benefit amounts can do wonders to you when it comes to receiving the benefits you desire.