Sep 302009
 

Retirement is probably the last thing on your mind if you’re a young worker. But
there are some basics you should know about Social Security and savings to plan
for your retirement.
Social Security is the foundation for a secure retirement, but was never intended
to be your only source of income when you retire. While Social Security replaces
about 40 percent of the average worker’s pre-retirement earnings, most financial
advisors say that you will need 70 percent or more of pre-retirement earnings to
live comfortably. Even with a pension, you will still need to save. If you will not
have a private pension, you will need to save more—and start saving sooner.
Today’s young workers can expect to spend 20, 30 or even more years in
retirement, so saving is critical.
The sooner you start to save, the more time your savings will have to grow.
Whether you’re able to save $5 or $500, it’s in your interest to start saving now.
Want to start planning your future now? There are some easy ways to do so.
Take a look at Your Social Security Statement, which you’ll receive in the mail
about two to three months before your birthday. Along with your annual
Statement, workers between the ages of 25 and 35 will receive a helpful insert
that provides information about Social Security, savings, and more items of
interest to young workers. Want something more interactive? Visit Social
Security’s online Retirement Estimator at www.socialsecurity.gov/estimator which
allows you to try out different retirement scenarios based on your personal
earnings record.
You can also go to www.mymoney.gov for information on getting credit, paying
for education, buying a home, creating a budget, starting a business as well as
financial calculators and planning tools.

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