"When you retire, chances are good that Social Security is going to be a major income source for you. In fact, according to the Senior Citizens League, 27% of survey respondents get all of their income from Social Security, while another 20% get between 76% and 99% of their income from the benefits program. It's not surprising that Americans rely so much on Social Security."
"While close to 30% of all Americans don't have income to supplement Social Security, the reality is that this can be a tough spot to be in because Social Security is only designed to replace around 40% of pre-retirement income. While most people don't need to replace their entire income after they stop working, the common recommendation is to replace around 70% at a minimum and ideally closer to 80% to 90%."
Many retirees rely heavily on Social Security, with 27% receiving all income and another 20% receiving 76–99% of income from the program. Social Security typically replaces about 40% of pre-retirement income, well below the commonly recommended 70% to 90% replacement target needed to maintain living standards. Few workers receive employer pensions today, and saving into 401(k)s can be difficult for those living paycheck to paycheck. The average Social Security benefit of $2,008 as of mid-2025 leaves many beneficiaries barely above the poverty level without supplemental funds. A risk-free, guaranteed income option can provide stable, reliable income to supplement Social Security and reduce the need to significantly downgrade retirement living standards.
Read at 24/7 Wall St.
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