EARNINGS DETERMINE PAYMENTS; SS SHOULD NOT BE ONLY INCOME SOURCE

CAPE GIRARDEAU - Unlike some private pension plans Social Security's computations are not based on the best five years of wages. Instead, average lifetime earnings establish the amount of payment.

For example, if you're turning 62 in 1991 or later your retirement benefit will be based on your best 35 years of earnings from 1951 to the present. Neither the best five years nor the last five years before age 62 have extra significance.

The first computation step is indexing: past earnings are adjusted to reflect changes in average wages that have occurred over the years. Indexing helps Social Security benefits more closely reflect the purchasing power of dollars at the time they were earned. And benefits retain purchasing power throughout retirement due to annual automatic cost of living raises.

Social Security should not be your only source of retirement income - as it is for one out of every seven beneficiaries. The average Social Security retirement check is only $602. The average wage earner will have only 41% pre-retirement earnings replaced by Social Security benefits. So if you want to have the same standard of living after you retire as you do while you are working you'll need additional income like other pensions, investments or savings.

Regardless of your age you should have a good idea of how much your Social Security benefits will be. If you're under 60 there's a form you can fill out and send in to get that information. The form, called a Request for Personal Earnings and Benefit Estimate Statement, is available free from Social Security. If you are 60 or older call Social Security and ask for a benefit estimate.