Only Relying on Social Security in Retirement? Why It's Time to Reconsider, and Try This Instead.
Image source: Getty Images.
Anticipating that Social Security can be your only source of support is going to get you into trouble because you're asking your benefits to do something they aren't supposed to do. These retirement benefits were intended to make up one of three legs on a three-legged stool. A pension and savings were the other two legs. Trying to build the foundation of your retirement on one leg alone is not going to work out very well.
Your benefits are designed to replace around 40% of pre-retirement income, and because the benefits formula is progressive, they replace even less than that for higher earners. The average monthly benefit at the start of 2024 was just $1,907, which means the typical retiree would have an income of around $22,884 from Social Security. Most people really can't live comfortably on that income level.
Source Fool.com
