YOUR SOCIAL SECURITY

YOUR SOCIAL SECURITY

By DAVID BROWN 

Some Americans are surprised to learn that today's workers and families are not nearly as diligent about saving as previous generations have been.

From the 1950s through the early 1980s, personal savings hovered between 6.6 and 11 percent of income. Since the early 1980s, however, personal savings have steadily declined. And now, in the first decade of a new century, personal savings have virtually flatlined at about one percent of income.

According to financial experts, you will need at least 70 percent of your annual working income when you retire to enjoy a comfortable lifestyle. For the average worker, Social Security will provide about 40 percent of that amount. That means you would have a 30 percent gap to fill.

Most workers can reach this goal through contributions to an employer's 401(k) or other pension plan, Individual Retirement Account or other savings and investments.

Of course, the above numbers are just general guidelines. The percentage of preretirement earnings that a worker can count on from Social Security can vary greatly. That amount will depend on how much you have earned and how many years you have worked in a job where you paid Social Security taxes. If you are married, your retirement financial goals would also be affected by the entitlement and expectations of your spouse to Social Security and other retirement benefits.

A convenient and handy way to see if the percentages for your retirement savings plan are in your favor is by using our online Retirement Benefits Planner at www.socialsecurity.gov . You can plug in the numbers and get estimates of what you (and your spouse) might expect in terms of Social Security benefits - and what you need to come up with yourself by other means. And, of course, the earlier you start planning for your retirement financial needs, the easier it will be.

Mr. Brown is District Manager of the Social Security Administration's Downtown New York Office.