The rate of return assumptions used in the program and the rate of return generated by the calculator should not be considered as suggesting or guaranteeing any rate of return or level of performance on any product, service or strategy offered by Homestead Advisers or Homestead Financial Services Corp., including any Homestead Fund.
Important
The results displayed in the Social Security Block are dependent on the information you have entered and are not a guarantee of future Social Security Benefits you may receive.
The Social Security Block is designed to illustrate the potential Social Security benefit you may receive and to help you to consider a strategy so that you might receive the greatest potential benefit. The results generated by the Social Security Block are hypothetical in nature, do not reflect actual costs, and are not guarantees of future costs. You should consult with your financial professional if you have questions about your ability to pay for future living expenses or what Social Security strategy is appropriate for you. This program does not provide legal, tax, accounting, or financial advice. Before making decisions with legal, tax, accounting, or financial ramifications, you should consult appropriate professionals for advice that is specific to your situation.
The benefits shown in the Social Security Block are estimates that assume you live to the age(s) you selected and are based on your current income, and may not accurately reflect your wage history.
Benefit amounts displayed in the Social Security Block are in current dollars and before taxes. The results displayed may vary with each use and over time.
Methodology
The Social Security Block uses the information you entered about your current income, selected retirement age, and life expectancy, and calculates the potential annual and lifetime Social Security benefit you may receive by assuming you income will regularly and steadily increase over your lifetime. The Social Security Block provides a life expectancy estimate based on the 2012 Individual Annuity Mortality Basic Tables, available online from the Society of Actuaries. Using the information you have provided, the Social Security Block calculates your estimated Benefit at Retirement/Annual Benefit and Total Lifetime Benefit using the formula published annually by the Social Security Administration (SSA). More information about this formula is available at https://www.ssa.gov/. To calculate the estimated Total Lifetime Benefit, the Social Security Block assumes that the SSA will provide a “Cost of Living Adjustment” each year you bare receiving Social Security Benefits. The Social Security Block assumes a benefit inflation rate of 2.5% (note that this rate may vary depending on defaults set by your financial firm), and adds that amount to your estimated Annual Benefit amount each year up to the planning end date. There are no guarantees cost of living adjustments will be made in the future.
If you change your income, retirement age, or life expectancy, your estimated benefit amount will change accordingly. The Social Security Block assumes you will file for Social Security at the age of which you receive the highest lifetime benefit, but will show you how taking benefits before or after that age will decrease or increase the amount you may receive, respectively, which is reflected by the “Amount You Give Up” amount on the “Modify Your Age to Begin Benefits” screen.
IMPORTANT: The projections or other information generated by iBlocks regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.
Glossary
Annual Benefit: Your Annual Benefit is the estimated benefit, in current dollars, you would receive at the age you select to begin claiming your Social Security benefits. The Social Security Block estimates your Annual Benefit based on your current income, and assumes your income has regularly and steadily increased over your lifetime and may not accurately reflect your wage history.
Benefit at Retirement: Your Benefit at Retirement is the estimated benefit, in current dollars, you would receive at the age you select to retire in the Social Security Block. The Social Security Block estimates your Benefit at Retirement based on your current income, and assumes your income has regularly and steadily increased over your lifetime and may not accurately reflect your wage history.
Total Lifetime Benefit: The Total Lifetime Benefit is a current dollar estimate of the amount of Social Security benefits received over your lifetime, assuming you live to the planning age(s) selected and subject to the Cost of Living Adjustment discussed above. The Social Security Block estimates your Total Lifetime Benefit based on your current income, and assumes your income has regularly and steadily increased over your lifetime and may not accurately reflect your wage history.