The article emphasizes the inadequacy of Social Security for many retirees as a primary income source, advocating the need for additional savings through 401(k) plans and brokerage accounts. A 2024 survey by the EBRI indicates that 62% of retirees rely on Social Security, but with economic challenges ahead, this dependence may increase. It advises against relying solely on higher-risk investments for greater returns, suggesting a balanced approach to retirement savings. The piece also alerts younger workers to the risks of underestimating future Social Security benefits.
For many Americans who wish to preserve their lifestyle in retirement, Social Security probably won't be nearly enough to cut it.
Around 62% of retirees view Social Security as a significant source of income, highlighting its importance despite its limitations.
Even if market returns are modest, reaching for more risk for higher returns isn't the answer for many prospective retirees.
Younger workers seem to be heavily underestimating Social Security, emphasizing the need for better retirement planning.
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