8
Sources of Retirement Income to Help
Feather Your Nest
Wondering where your retirement money will come from? If you’re counting
on a big nest egg from Social Security, you may be barking up the wrong tree.
The reality is, you have to feather your own nest for a secure, comfortable retirement. Although other income
sources, like Social Security, pension benefits (if any), or part-time work may help fund your retirement piggy
bank, the most significant part of your retirement income will come from your own personal savings and
investments. That’s why it’s so important to develop a strategy for growing your retirement savings now, during
your working years. By starting today and making regular contributions to Petco’s 401(k) Plan, your account
balance can grow and grow, with compound interest tax-deferred. Plus, if you contribute at least 6% to the plan,
you’ll receive an additional 3% of “free money” from Petco matching contributions.
How Much Security in Social Security?
As a working tax payer, you pay 12.4% in taxes to Social
Security. If you look at your pay stub, you will see the
amount listed as FICA, which stands for “Federal Insurance
Contributions Act.” Petco also pays payroll taxes to Social
Security on your behalf. Once you retire and meet
eligibility requirements, or if you become disabled, you,
your spouse and your children may be entitled to monthly
Social Security benefits.
While Social Security may provide a modest foundation of
income, it is not intended to fully fund your retirement
years. You need personal savings with a balanced portfolio
of investments to round out your retirement picture.
To get an idea of what your Social Security benefit might
be based on your earnings record, visit
and
click on “Estimate Your Retirement Benefits.” Find out
what percent of your total retirement income Social Security
may represent, and then modify your retirement savings
strategy to make up the shortfall.
Check on Your Social
Security Benefit
To find out what your estimated Social
Security benefit will be, visit the Social
Security Administration website at
and get your Social
Security Statement online. Or, you can
call the Social Security Administration
at 800-772-1213 and request a Social
Security Statement.
