The Social Security / Income Gap
Experts estimate that you'll need 80% of your pre-retirement income to live comfortably
in retirement. And Social Security will fund only a small portion of what you'll
need. According to the Social Security Administration, Social Security income typically
comprises only 21% of an individual's retirement income. What other sources of income
will you have to fill the gap? The other 79% will have to come from savings, investments,
employment earnings pensions and other sources.
A good place to start retirement planning is by looking at your Social Security
benefits statement. The Social Security Administration mails it to you annually
three months before your birthday. It outlines your benefits and estimates your
retirement income, making it an important planning tool.