You have no more excuses!

Most of us put off planning seriously for retirement until it's just around the corner. That may change for many workers, thanks to the folks at the Social Security Administration.

The Social Security Administration is starting to issue annual statements to all eligible workers explaining how much they and their family might expect to receive in Social Security benefits. Such statements were available before, but only on request. Now everyone eligible for Social Security will receive them every year. The statements will provide a shock in many cases, and perhaps an incentive for people to start planning more seriously not only for their retirement, but for other financial concerns such as disability and life insurance.

Your four-page statement should arrive roughly three months before your birthday. First, read the statement thoroughly for errors, especially the chart of your annual earnings on which you've paid Social Security. Those earnings are what determine your various benefits, so make sure they're correct. Chances of error are considered small, but if you find errors, call Social Security at (800) 772-1213 to learn how to correct them.

Next, look at the estimates of how much you will receive each month in retirement benefits depending on whether you retire early at age 62, your normal retirement age (65-67) and at age 70. Keep in mind that these estimated benefits reflect your most current estimated taxable earnings and presume you'll keep earning that amount until retirement. The statement does not factor in inflation or future pay increases. That's okay if you're nearing retirement, but if you're years away from retirement, the monthly benefit estimates are less useful.

You can request a more customized statement from Social Security by phone or through their Web site (www.ssa.gov). Give them your best estimate of what you'll be making in the future and they'll give you a new statement (it will be in place of your next annual statement).

Here's where the statement may open some eyes. Look at those estimated monthly benefit amounts and figure out roughly how much of your retirement income they would provide. How much

retirement income you'll need depends on many factors. Making an estimate, either on your own or with a professional financial planner, is ideal. But if you haven't done that by the time you receive the statement, use the rough guide of 80 percent of your pre-retirement income.

Is there a large gap between what Social Security would pay and what you need for a comfortable retirement? Do you have other resources, such as personal savings and pension income, that will cover that gap? For people who haven't planned for their retirement, the gap may come as a shock. Many people assume Social Security will provide for most of their retirement needs. But Social Security was never intended to fully fund a worker's retirement. It was designed to supplement retirement funds and to ensure a minimum financial safety net. Unfortunately, two-thirds of current retirees depend on Social Security [USA Today, file]for at least half of their income. If it looks like you're going to depend on Social Security for a large chunk of your retirement income, it is time to get serious about saving on your own.

The benefits of the Social Security statement don't stop at retirement, however. The statement includes two other important estimates, again based on your projected lifetime earnings. One statement shows how much you would receive in disability payments if you became severely disabled today. As with the retirement estimates, determine what portion of your current monthly earnings that payment would replace. Also, keep in mind that you must be physically unable to work to qualify for Social Security disability payments. The statement may encourage you to seek more comprehensive disability coverage, either through work or on your own.

The statement also estimates payments your survivors would receive should you die today. This, too, may be an incentive to review your life insurance to be sure it is adequate for your survivor's needs.

So don't pitch your Social Security statement into the wastebasket with the junk mail. It's one of the most important pieces of mail you may receive in the next year.

This article was produced by the Consumer Affairs Dept. of The Financial Planning Association and provided to you courtesy of Nigel B. Taylor, CFP, Santa Monica, California. If you have any questions or concerns regarding this, or any other financial topic and are a resident of Southern California, please call me at 1-800-444-2237 (California residents only please), or click on the "MORE INFO" button to arrange for a free initial consultation in the comfort of your home or office.