Petco Barking About Benefits Magazine Q3 2012

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 www.ssa.gov 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 www.ssa.gov 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.

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