Why the $4,194 Max Social Security Benefit Is a Fantasy

Overestimating your Social Security income can be catastrophic for your retirement plan. It's important to understand how your benefits are determined so that you can set reasonable expectations for guaranteed cash flow in retirement. It would be great to have $4,194 of monthly income, but most investors are better off getting this number out of their heads.

Obviously, the maximum benefit is going to be higher than the average, but the difference here is staggering. The average monthly Social Security check is under $1,700 right now. That's only 40% of the maximum.

For most people, the reality of retirement benefits will fall nowhere near the highest potential number. It's important to manage expectations with that in mind. People who go toward retirement expecting anything close to the maximum are probably setting themselves up for disaster.

Source Fool.com