Each year around September I get a statement showing the amount of SS I'm entitled to receive at age 62, 66, and 70. Are those amounts present values or future values? My statements says, "If you stop working now, at age 62 your payment would be about $1632". Does that mean the check I will receive at age 62 will have $1632 written on it? Or will it be more than that?
The reason I'm confused is because of an online financial calculator I was playing with recently. The calculator had me type my financial information. It then displayed my expected income each year for the rest of my life. At age 62 it says my SS will start at $2055/mo, not $1632/mo. (I'm 55 now).
I calculate that $2055 seven years from now is about equal in value to $1632 today (3% inflation). This makes me think that the values on the SS statement are present values of future amounts. But the statement doesn't say that anywhere. The way the statement is worded it sounds like $1632 will be the amount written on my check at age 62. Apparently that's not right. Am I correct in thinking that the amount of my check at age 62 will be more like $2055 instead of the $1632? If that's the case then the SS statement is a bit misleading.
FYI, here's the calculator I was using.
Retirement Calculator: How much will I need to save for retirement? Yahoo! Personal Finance