Social Security is a crucial financial resource for retirees but it should not be the only source of income. The average benefit, only $1,976 monthly or approximately $23,712 annually, is often inadequate to maintain one's pre-retirement standard of living. The benefit formula is designed to replace about 40% of pre-retirement earnings, especially affecting higher earners negatively. Thus, retirees must consider pensions, savings, and investments alongside Social Security to ensure financial security and avoid potential struggles later in life.
You cannot live on Social Security alone because your benefits will not be big enough.
If you are anticipating that Social Security will be enough to support you, you are setting yourself up for a major disaster.
The average Social Security benefit is only $1,976 as of January 2025; unless you can live on $23,712 per year without any other income, it’s inadequate.
Without additional income sources, you will struggle big time to maintain anything close to your current living standard.
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