Financial planning is not just for people nearing retirement. In fact, it’s a good idea to begin planning for a comfortable and secure retirement when you’re young. 

That’s why Social Security has a new financial planning tool especially for the 25-to-35 year-old crowd. It’s a special mailer with information about Social Security, savings, and other items that should be of interest to young workers. If you’re between 25 and 35 and you work and pay Social Security taxes, you’ll get this automatically with your next Social Security statement. 

Social Security is the foundation for a secure retirement, but it was never intended to be your only source of income when you retire. While Social Security replaces about 40 percent of the average worker’s pre-retirement earnings, most financial advisors say you will need 70 percent or more of pre-retirement earnings to live comfortably. 

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Even with a pension, you will still need to save. If you will not have a private pension, you will need to save even more — and start saving sooner.

Today’s young workers can expect to spend 20, 30 or even more years in retirement, so saving is critical.

Want to start planning your future?  There are some easy ways to do so. 

Take a look at your statement from Social Security, which you’ll receive in the mail about two to three months before your birthday, as well as the helpful two-page insert tailored specifically to workers ages 25 to 35. 

Pay close attention to the information provided, including tips on saving, getting your employer to help with matching contributions to retirement plans, and how much of a difference beginning to save early can make. There’s even a graph showing the significant difference saving over time can make, even if it’s just $25 or $50 a week. 

The insert also includes helpful links to outside websites that can help you. For example, you can go to www.mymoney.gov for information on getting credit, paying for education, buying a home, creating a budget, starting a business as well as financial calculators and planning tools. Or, visit www.federalreserve.gov for a worksheet that will help you establish a budget to meet your financial goals. These and other financial links on the insert will help you become the master of your own financial future.

Social Security coverage is not just for retirement. It’s also for disability and survivors benefits in the event you are unable to work, or you die leaving behind a family that depends on your income. Read more about retirement, disability and survivors benefits at www.socialsecurity.gov.

Social Security Q&A

Q. I lost my Social Security card and am afraid someone else could be using my number. Should I report it to Social Security?

A. If you think someone is using your number to work, call Social Security at 1-800-772-1213. But reporting a lost or stolen card to Social Security will not prevent its misuse, so if you think someone is using your number, other actions you will want to take are:

• Contact the Federal Trade Commission online at www.ftc.gov/bcp/edu/microsites/idtheft or call 1-877-ID-THEFT  (1-877-438-4338)

• File an online complaint with the Internet Crime Complaint Center at www.ic3.gov

• Contact the IRS Identity Theft Hotline by calling 1-800-908-4490 Monday–Friday, 8 a.m. to 8 p.m.

• Monitor your credit report.

Q. In retirement, do I have to pay income tax on my Social Security benefits?

A. You will have to pay federal taxes on your benefits if you file an individual federal tax return and your total income is more than $25,000. If you file a joint return, you will have to pay taxes if you and your spouse have a total income that is more than $32,000. Contact the IRS at 1-800-829-3676 and ask for Publication 915, Social Security and Equivalent Railroad Retirement Benefits or get it online at www.irs.gov/publications/p915/index.html.

Q. How much will I receive if I qualify for Supplemental Security Income (SSI) benefits?

A. The basic maximum SSI payment is the same nationwide. For 2009, the maximum SSI payment for an eligible individual is $674 per month and $1,011 per month for an eligible couple. Some states, including Arizona, add money to the basic payment to help you meet your living expenses under certain conditions. In addition, other income you have can reduce the basic SSI payment amount. For more information, go to www.socialsecurity.gov

Contact Jim Pavletich, public information officer for the Social Security Administration in Phoenix, at James.pavletich@ssa.gov or 1-866-331-4359 ext. 12876.