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Social Security benefits will probably be a major source of your retirement
income. While there may be changes to the Social Security system over the
coming years, all indications are that this program, started in the 1930s,
will continue to provide retirement benefits to Americans well into the 21st
century.
Social Security Reports
The Social Security Administration (SSA) has started a program of sending
reports to participants in the program. These reports, called Personal
Earnings & Benefits Estimate Statements, provide details on your taxed
earnings, how much you have contributed over the years and your estimated
retirement benefits. The SSA plans to mail these reports to all workers on an
annual basis. Reports can also be requested by using a request form available
at your local Social Security office.
When you receive your report you should review it carefully. Make sure all
the information is correct, including the spelling of your name, social
security number, birth date and your salary record. Errors, such as a missed
year of wages, could cause your retirement benefits to be lower than they
should be. If there are errors, be sure to contact the Social Security office
to have them corrected. They may require you to provide records supporting
your corrections.
The report will also give you an idea of your anticipated level of
benefits. For many, this will be an eye-opening experience. The 2005 average
monthly benefit for a retired worker is $955. For a retired couple, the
average is $1,5274per month. Using this information can be helpful when
reviewing your current retirement planning strategy.
Future of Social Security
The Social Security system will be undergoing changes in the years ahead.
There are many proposals currently being discussed that would make the system
more financially secure and others that would enable workers to have some
control in how contributions are "invested." The bottom line is
that Social Security benefits will probably be a significant part of most
individuals' retirement income.
You can use your Personal Earnings and Benefits Estimate Statement to help
determine how financially secure your retirement will be.
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