Is there a Social Security projection calculator?

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Is there a Social Security projection calculator?

Postby AndroAsc » Sat Jul 27, 2013 8:54 am

I'm young (mid-20s), and some of the advice out there is to "write off" SS. However, I thought that it would still be interesting to calculate how much SS payout I can get at retirement.

The problem is that I cannot find any Social Security projection calculator, i.e. like FireCalc but for SS. The SS calculator seems to need "real data", they need access to your real earnings and they use real historical inflation. Is there anything where you can input your expected future salaries, future inflation and get a ballpark figure of how much SS payout will be under the current laws? I know that this figure would not be accurate, but one could make assumptions and ask questions like "if SS payouts are cut by 50% relative to current levels, how much would I get at retirement"?
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Re: Is there a Social Security projection calculator?

Postby dickenjb » Sat Jul 27, 2013 9:00 am

It is much easier to do such projections in real terms.

It is kind of hard to wrap your head around at first but planning everything in real dollars is much easier once you get your head wrapped around it.

Just plug in a career's worth of salary increases of, say, 1% real per year and use AnyPIA from the SS website.

BTW you say real income and real inflation but mean actual income and historical inflation. Real to an economist means deflated, not including inflation.

Hope this helps.
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nominal and real

Postby bobcat2 » Sat Jul 27, 2013 10:52 am

In economics, a nominal value is an economic value expressed in dollar terms.

A real value is a value expressed in dollars adjusted for purchasing power. In other words a value adjusted for inflation and deflation so that the real purchasing power is held constant.


Example

A person earns $100,000 in one year and $103,000 in the next year. Inflation was 3% in the second year.
The nominal earnings were $100,000 and $103,000. The real earnings, or purchasing power held constant earnings, are $100,000 in both years.

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