"One reason why so many older Americans end up worrying about where their money will come from in retirement is that they only have one source of guaranteed income that they are confident will last for life: Social Security. And Social Security doesn't really provide all that much money for most. In fact, the average Social Security benefit in 2025 was around $2,o09.50 as of September 2025."
"One option is to find a job with an employer that offers a defined benefit plan. This type of traditional pension is different from a 401(k), as a defined benefit plan guarantees you a set amount of income based on your salary and tenure on the job, while a 401(k) offers the opportunity to invest for your own future but doesn't come with any guarantee that you'll end up with a steady amount of income or end up with income for life."
Many retirees face income insecurity because Social Security often provides insufficient benefits. The average Social Security benefit in 2025 was around $2,o09.50, which commonly results in income barely above the poverty level. Relying solely on Social Security leaves seniors vulnerable to high healthcare and living costs. Additional guaranteed income sources can provide stability for life. One option is a defined benefit pension from an employer, which pays a set income based on salary and tenure. Defined benefit plans differ from 401(k)s because 401(k)s do not guarantee a lifetime income. Opportunities for employer pensions are limited.
Read at 24/7 Wall St.
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