Crescent-News.com - SS has your (retirement) numbers

By HEATHER BAUGHMAN

baughman@crescent-news.com

Retirement might seem like an unattainable goal as many people's retirement accounts continue to dwindle with today's unstable stock market. But there is a new tool available to help people prepare for the future.

The Social Security Administration has made retirement planning a bit easier with the help of a retirement estimator, which was launched this summer.

The retirement estimator, an online tool to help people determine when they can retire, hit the Social Security Administration's website in July.

This tool is "immediate and personalized, convenient and interactive, and secure," according to Erin Thompson, public affairs specialist in the SSA's Toledo office.

The retirement estimator, which uses Social Security earnings that are constantly being updated, will produce estimates that are based on an individual's actual Social Security earnings record, and will vary slightly from the actual benefit an individual may receive in the future.

"The calculator helps people determine the size of their nest egg -- Social Security, savings, defined benefits, assets, etc. -- and how much money they need to continue to live comfortably," said Kathy Keller, associate state director, communications of AARP Ohio.

Using the calculator is simple, Thompson said. "You must enter certain identifying information about yourself ... your first and last name, date of birth, Social Security number, place of birth and mother's maiden name.

If the information entered matches Social Security's records, then you can begin to explore the basic retirement estimates, and input additional data like future earnings and a 'stop work' age to get additional estimates."

Thompson noted that the site is very secure. "To protect your privacy, only your benefit estimates are provided online. The retirement estimator does not reveal any of your personal information, such as your address, earnings or other information that could lead to identity theft."

Just about anyone who is curious about their retirement can use the SSA's estimator.

"Anyone can use the retirement estimator (who) is at least age 25, not already receiving Social Security benefits on their own earnings record, not entitled to Medicare, the person has enough credits of coverage to qualify for Social Security, and they are not eligible for a pension based on work not covered by Social Security (government pension)," she said.

The retirement estimator tool can help people gauge when they can retire and how much money they will receive from Social Security, but it should not be the only source of retirement advice.

"Social Security is one part of a person's retirement. A person should still have savings, pensions, or additional income in the retirement," Thompson said. However, the retirement estimator "can assist (people) with their own financial planning, and can also assist professionals (who) help clients."

For more information about the retirement estimator, visit www.socialsecurity.gov/estimator.

"Not only can you estimate your retirement benefits online, when you're ready to file for retirement, spouses, or disability benefits, you can also file online at www.socialsecurity.gov/r&m2.htm," Thompson said.

Additional financial retirement planning information can also be found at AARP's website, at www.aarp.org/money/financial_planning.

"Families who begin to discuss the cost of retirement tend to start saving more, spending less, paying off debts and even enrolling in a retirement savings plan at work," Keller said. In fact, "as far as savings goes, the earlier the better," she said. "In the best of all worlds, parents would teach their children to save and show them the real benefits of saving.

"Retirement planning should begin with your job first - immediately sign up for your company's 401K plan," Keller said.

"The biggest benefit of planning is the peace of mind that comes with knowing that you are taking steps to remain in control of your own life, no matter your age," Keller said.

"For older adults, this can mean making decisions about long-term care options," Keller continued. "For younger workers, it can mean knowing that you are setting aside the down payment you need to buy a home."