Here's How to Realistically Factor Social Security Into Your Retirement Plan
Millions of seniors today collect Social Security, and for many, those benefits serve as their sole or primary income source. Unfortunately, it's those same people who tend to wind up cash-strapped in retirement. And if you're looking to avoid that fate, then it's important to be realistic about what Social Security will pay you.
The monthly Social Security benefit you're entitled to during retirement will hinge on different factors. Those include:
But for the most part, you should expect your Social Security benefits to replace about 40% of your pre-retirement income at most. And if benefit cuts come down the pike (a distinct possibility due to an impending financial shortfall), you can expect them to replace more like 30% of your former earnings.
Source Fool.com
