WHAT WILL SOCIAL SECURITY AND YOUR PENSION PROVIDE?

If you have been working all your life contributing the maximum to the Social Security system, you could receive over $13,000 at your normal retirement age ($20,000 for a couple). Of course, these figures will be adjusted for inflation. If you choose to start receiving your benefits before your normal retirement age, you would receive a reduced benefit. To find out how much you are entitled to, you should send for a "Request for Earnings and Benefit Estimate Statement" from the Social Security Administration (SSA). You can obtain a free form from your local SSA office. Its telephone number is listed in your White Pages.

If you worked for an employer that has an employee retirement plan, you may be entitled to retirement benefits. There are different kids of plans in use today. A typical "defined benefit" plan may provide as much as 50 percent or more of your final average salary at normal retirement age (as defined in the plan document). A "defined contribution" plan will provide you with a lump sum at retirement that you can convert into retirement income.

You should contact the personnel or human resource department of your employer to get an estimate of your retirement benefits, if any.

Your Social Security and retirement benefits will provide only a portion of the cash inflows you will need for your retirement vision. The difference will have to come from your own savings. You can use the table on the next screen to help determine how much you need to save.