The process of calculating monthly Social Security payments depends on multiple variables that the beneficiary can review. The federal agency manages millions of accounts, and individual records don’t always accurately reflect historical income, changes in marital status, or adjustments made after proof of income.
Checking these three elements allows for the detection of potential discrepancies between the retirement benefit that is currently paid and what would be due according to regulations.
Check our income history reported to Social Security
The first aspect to examine is the record of earnings accumulated during the working life. The formula used by the Social Security Administration (SSA) to determine the benefit amount takes into account the 35 years with the highest earnings. To verify this information, the beneficiary must access their “my Social Security” account on the ssa.gov website.
Then, compare the data shown there with their own tax returns. If any high-income year is missing from the system or if the reported amounts are lower than the actual amounts, the monthly payment could be less than what they should be paying.
The economic magnitude of these omissions can be significant. According to Social Security Intelligence, one year of unreported income reduces monthly benefits by approximately $33. Projecting that decrease over a lifetime of retirement, the total loss amounts to tens of thousands of dollars.
Common errors in work records
The most frequent errors in the history include misreported income and incorrect personal information (name, date of birth, or Social Security number). The SSA itself acknowledged making approximately $13.6 billion in incorrect payments during 2022: of that amount, $11.1 billion were overpayments and $2.5 billion were underpayments.
Under normal circumstances, the beneficiary has a maximum of 3 years, 3 months, and 15 days from the end of the tax year in which the wages were paid to request a correction to their record. However, there are exceptions. The Social Security Administration allows for the correction of errors when they are supported by tax returns filed with the IRS.
procedure to initiate a correction
To request an adjustment, the beneficiary can use their “my Social Security” account and submit the request online. They also have the option of calling 1-800-772-1213 or visiting a local SSA office.
Updated marital status:
The second checkpoint concerns changes in family status. If a beneficiary’s spouse or former partner recently died and that information hasn’t been updated in the SSA’s systems, the benefit amount may change. Funeral homes typically notify the agency of deaths, but some may go unreported.
In those cases, the beneficiary should call 800-772-1213 or visit a local SSA office and provide the spouse’s name, Social Security number, date of birth, and date of death.
Marriage, divorce, the death of a spouse, and a new disability start date can all change the amount owed. When these updates aren’t processed, the underpayment repeats month after month until someone notices.
Recalculation after income test:
This third point is the most technically complex and the least known among beneficiaries. By 2026, if the individual is below full retirement age (FRA), the annual income limit allowed without penalty is $24,480. The SSA withholds $1 for every $2 earned above that limit.
Misunderstanding about the withheld money:
A common misconception is that withheld amounts are lost forever. That’s not true. Once a beneficiary reaches their FRA, the SSA recalculates and increases the future monthly benefit to compensate for all the months payments were suspended or reduced. Essentially, the income test trades a temporary reduction now for a permanent increase in the monthly payment later.
Recalculation verification:
The beneficiary can verify if the recalculation was performed correctly by checking the information in their “my Social Security” account. If they find an insufficient payment, they should call 1-800-772-1213 or visit the nearest SSA office and submit a written request for a benefit recalculation. Social Security Administration