The Most Important Social Security Chart You'll Ever See
Typical retirement advice is that you should try to replace 70% to 80% of your pre-retirement income with your investments and other income in retirement. An important piece of that equation is Social Security. But retirees hoping Social Security will do most of the heavy lifting may be surprised when those checks are less than they hoped.
It's important for everyone to know how Social Security benefits are calculated so they can make prudent retirement savings decisions. One chart will show you why you can't rely on Social Security alone.
You probably know Social Security is calculated based on your earnings history. You may or may not know that Social Security uses a progessive system to ensure low earners still receive meaningful income from the social insurance program. If you're a median to high earner, the percentage of your income replaced by Social Security in retirement might be lower than you thought.
Source Fool.com
