When you're far away from retirement, the numbers look like a Jackson Pollock painting: They seem really abstract. This year, though, I was paying attention and noticed considerably more detail in my Social Security statement.
For one thing, the "Thinking of Retiring" newsletter/statement that the SSA sent me contains a lot more useful detail. It breaks down my estimated benefit by retirement age, lists my earnings record and even tells me how to reap a higher benefit (retire later).
No matter how old you are, you should know some key facts about Social Security. The most essential one is that it typically only covers 40% of your pre-retirement income. For most folks living in urban areas, that's hardly enough, so you'll need to save much more in 401(k)s and other retirement vehicles.
Even more important is knowing how Social Security works. It's not just an inflation-adjusted retirement benefit -- something that really doesn't exist in the private sector -- it also provides disability, spousal and survivor benefits. It's actually a pretty good deal.
