Step 3 Meeting Your Income Needs

In retirement, most people receive income from three sources—employer pension plans, Social Security, and personal savings. In the following calculation, you estimate what you can expect from employer pensions and Social Security. This is compared to your estimated retirement income needs to determine what you must provide from personal savings. 

The Social Security Administration sends an annual statement of earnings history and benefits estimate to every wage earner. You may also phone (800) SSA-1213 or visit the Social Security web site (www.ssa.gov) to request a customized benefits estimate. Also, your employer s pension plan administrator will provide an estimate of your pension benefits. 

Step 3a Estimated Income from Social Security and Pensions 

Your estimated annual pension at planned retirement 

---