37% of Near-Retirees Are Making This Catastrophic Mistake

Social Security serves as a critical income source for millions of seniors today, but those benefits have limited buying power. These days, the average recipient collects roughly $1,500 a month, or $18,000 a year, and while that income is helpful, it's certainly not enough to support a comfortable lifestyle.

It's therefore disturbing to read that 37% of baby boomers anticipate that Social Security will be their primary source of income in retirement, according to a recent Transamerica survey. And given the fact that the program is facing its share of financial woes, those who expect to depend heavily on it may be in for a late-in-life shock.

Social Security will generally replace about 40% of the average worker's pre-retirement income. Most seniors, however, need a lot more money than that to maintain a decent standard of living. In fact, as a rule of thumb, workers today are told to aim for 70% to 80% of their former wages in replacement income during retirement, so those who expect Social Security to be their primary income source risk falling dangerously short.

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Source Fool.com