Retirement Planning: Social Security - Check Your Numbers!

Should you include Social Security in your retirement planning? As with most things financial, it depends. Since 1999, the Social Security Administration has been sending benefits statements to workers over 25. Statements estimate monthly retirement, among other benefits.

Whether or not you include this figure in your future planning, you should take the time to review the statement. It’s a good idea to check for errors while you still have W-2s to back up your figures.

For those of you who are close to retirement age, the good news is that the estimate may be fairly accurate because it’s based on your average lifetime earnings. Have you looked at the monthly benefits? It’s not that much. Recent advice on retirement planning suggests you plan on having enough to spending monthly the same amount you do now. You may think you’ll have less expenses later, but consider health care. And what about some of that fun those American Express commercials are always promising?

"All of this is designed to make you think about retirement and understand that social security shouldn't be your sole source," says Social Security Administration spokesman Mark Lassiter. "The earlier you start planning and start saving for your future, the more prepared you'll be."