SOCIAL SECURITY: WHAT YOU DON'T KNOW CAN HURT YOU

By Frank Hunt, Social Security Administration

	When it comes to Social Security, what you don't know can hurt you, or at
least put you at a disadvantage. Here are three mistakes for you to avoid.

	Mistake #1: trying to live on Social Security benefits. Social Security was
never meant to be your only source of retirement income. It should be part
of a financial "three-legged stool", with pensions, and individual savings
and investments.

	If you're average, Social Security will replace only about 42 percent of
what you earn before you retire. For a comfortable retirement, you'll need
70 to 80 percent of your pre-retirement incomes. To attain that goal, try to
set aside at least one dollar in your personal retirement savings for every
dollar of Social Security taxes you pay. Start early--it's never too early
to save for retirement.

	Mistake #2: ignoring your Social Security statement. If you're 25 or older
and you work, the Social Security Administration will send you a Statement
via the mail each year about three months before your birthday. Don't throw
it out without looking at it.

	The Statement shows what to expect from Social Security at various
retirement ages. It shows how much you'll get if you become so disabled that
you can't work for at least a year. And it shows what benefits your family
can draw if you die.

	Most importantly, every time you get a Statement, examine your Social
Security earnings records for gaps in your work history. If there are gaps
where they should not be (some of your earnings are missing) notify SSA.

	Keep copy of your Statement with your other financial records. When you
discard an old Statement, be sure to destroy it first. 

	Mistake #3: rejecting direct deposit. The safest, most convenient way to get
your Social Security benefits is by direct deposit. With direct
deposit--also known as electronic funds transfer--your money goes directly
from SSA into your account at your bank, savings and loan, or credit union.
Once it's set up, direct deposit is virtually 100 percent reliable. Your
benefits will always be in your account, even if you can't get to the bank,
the first business minute of your check payment date.

	Are you making any of these mistakes?  If so, it might be time to update
your ideas about Social Security.  And remember, visit our website at
www.ssa.gov to get all the latest information on just about any aspect of
Social Security.

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Frank Hunt is a public affairs specialist for the Social Security
Administration.

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