Published: May 10, 2008 06:37 pm            

SOCIAL SECURITY: A good time to dust off financial blueprint

TERRE HAUTE — Spring is in the air. And in many households, spring cleaning is a regular part of the season of renewal.

As you’re dusting your house and cleaning out the clutter, don’t forget another important matter deserving of your attention. Spring is a good time to dust off your financial plan, too.

The best way to renew your financial plan and to make sure you’re on your way to a comfortable retirement is to go to www.socialsecurity.gov and visit the retirement planners.

Experts agree, people who use financial planning tools, such as retirement calculators, usually end up better off financially than those who do not take advantage of such tools.

Of course, the best place to begin any retirement calculation is by knowing what you may receive from Social Security … and how much more you will need to enjoy a comfortable retirement.

Each year, every worker age 25 and older is mailed a Social Security Statement. Read it carefully because it is a road map to your personal financial future. It shows how much you and your family can expect to receive from Social Security when you retire, or if you become disabled or die. If you can’t find your last Statement you don’t have to wait for your next one.

Just visit www.socialsecurity.gov/mystatement to ask for a new Statement to be mailed to you.

In addition, you should visit Social Security’s financial planning Web site at www.socialsecurity.gov/planners. You can use the calculators there to test different retirement ages or different scenarios for future earnings amounts. And you can link to a non-Social Security worksheet that will help you decide how much you need to save and invest for retirement.

Most financial advisers say you will need about 70 to 80 percent of your pre-retirement earnings to comfortably maintain your pre-retirement standard of living. Under current law, if you have average earnings, your Social Security retirement benefits will replace only about 40 percent, so you will need to supplement your benefits with a pension, savings or investments. That’s why it’s a good idea to evaluate your financial plan for retirement now.

Once you’ve cleaned the house, get to work dusting off your financial plan. Spring is a time of renewal, so why not renew your retirement plans to make sure you’re on the right path? Make use of the financial planning tools available to you at www.socialsecurity.gov.

        

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