That 2% cut in Social Security taxes (from 6.2% to 4.2%) was supposed to stimulate the economy.

But according to Martin Crutsinger’s and David Pitt’s recent article on Blomberg BusinessWeek, the tax cut has little impact on the economy in January. Consumers increased spending by only 0.2% in January, the smallest increase since last June.

It’s a big number, an estimated $110 billion that workers will receive from the Social Security tax cut. That means about $1,000 to $2,000 in additional income for most families and approximately $4,000 or more for families with two high-income earners.

So what’s it going be, pay down credit card bills, deal with higher gas prices, more personal spending, or use the tax savings to put more away for retirement? Some of that $110 billion with perhaps an employer match plus the tax deferral can help close the retirement income gap.

And yes, it is effective only in 2011, but you gotta take advantage of the opportunities when they’re available.