The Social Security Administration now sends estimated benefits statement to all workers over age 25 who do not yet receive Social Security. The statement is designed to help you plan for the future by providing estimates of your retirement, disability, and survivor's benefits that you could receive from Social Security. Each statement should arrive about three months before your birthday. If you have not received one recently, please visit the SSA website and apply for one online.
 
        The Social Security statement is a valuable tool that will help Americans prepare for their long-term financial security. Although the numbers are only estimates, they will provide a starting point for your retirement planning. You'll be able to see how much (or how little) you should expect in benefits when you retire.
 

The statement contains:

• An estimate of the monthly retirement benefits you will receive at age 62, full retirement age, and at age 70
• A projection of the monthly disability benefits for which you could be eligible if you stiffer a severe disability
• An estimate of the monthly benefits your family will receive if you die
• A breakdown of your earnings to date
• A summary of the Social Security and Medicare taxes you've paid to the system so far

        When you receive your statement, the section detailing your estimated retirement benefits shows how much you'll receive each month in benefits.  Add any income you expect to receive from retirement plans, pension plans or other sources, then compare the total to the monthly income you expect to need in retirement.  If you discover a shortfall, you should:
 

• Look at your current financial situation and goals.  After retirement, some work-related expenses will be eliminated, some debts will be paid off, your children may be independent and your income tax bracket may be lower.  But you'll still face bills for clothing, personal items, health care, insurance, home maintenance, entertainment and gifts.  Remember to consider that there may be new interests such as business ventures, hobbies, traveling and other leisure activities once you retire.
• Take advantage of the avenues that provide for pre-tax contributions. These would include employer-sponsored retirement plans, IRAs, and 401(k) or 403(b) plans.  Maximizing these benefits will provide a solid foundation for retirement.

 
• Examine the section detailing how much you and your family could receive if you become disabled and are unable to work.  Remember that many disability claims are denied by the Social Security Administration.  To be considered disabled by the federal government, you must be unable to do ANY gainful work - not just unable to perform your current job.
• Disability income protection insurance can provide your family with a financial safety net to complement Social Security.  This type of coverage pays a percentage of your salary if you're too sick or injured to work, and is usually less restrictive than disability requirements under Social Security.

 
• Examine the section detailing the monthly benefits your survivors will receive when you die. If you don't believe this will meet their needs, your family is dangerously unprotected and life insurance benefits will be essential to their financial security.
• Life insurance proceeds can be used to pay for a child's college education, the car payment, credit card debt, business expenses, or any other bill threatening your family's lifestyle.