Retirement can be a challenging phase for many, especially when it comes to managing finances. A recent survey by Clever revealed that about 1 in 4 retirees have no savings, which can be due to several reasons. Some struggle to make ends meet as they live paycheck to paycheck, while others find themselves facing unexpected expenses. But there’s another common reason why retirees find it hard to make ends meet—an incorrect belief about Social Security benefits.
This myth about Social Security has been around for years, and surprisingly, nearly 3 in 10 retirees still believe it. It’s essential to understand the truth behind this misconception to avoid financial struggles in retirement. Let’s take a closer look at this and explore what retirees should know to avoid falling into the trap.
Social Security Was Only Meant to Be a Supplement
When Social Security was first introduced, it was designed to replace only a small portion of a worker’s pre-retirement income. The goal was to replace about 40% of pre-retirement income for workers earning an average income. For those with below-average earnings, the replacement rate could be a little higher, while those with higher earnings might receive less. But one thing is clear—Social Security was never meant to be your only source of income during retirement.
On average, retired workers receive about $1,976 per month, which adds up to around $23,712 annually. Married couples can expect slightly more since they receive two benefit checks. On average, couples get around $3,089 per month, or $37,068 per year. While that might sound like a decent amount, it’s far from enough to cover the cost of living comfortably, especially if you’re dealing with health issues or living in an expensive area.
Unfortunately, many retirees find themselves in a tough spot. About 10% of seniors depend on Social Security to cover at least 90% of their income. This can lead to financial strain, with some retirees unable to keep up with essential bills or even facing the risk of losing their homes.
Other Sources of Retirement Income to Consider
If you’re still in your working years, personal savings are a crucial addition to Social Security benefits. Even saving a small amount each month can add up over time, and by investing your savings, you could see significant growth as you approach retirement. Don’t underestimate the power of small, regular contributions—these can grow into substantial funds by the time you retire.
For some people, delaying retirement or choosing a phased retirement could also be a helpful strategy. This gives you the flexibility of a steady paycheck while easing into retirement. You can even work part-time, enjoying the benefits of retirement while continuing to earn.
However, if you’ve already retired and can’t go back to work, there are still other ways to boost your income. For instance, homeowners may want to consider a reverse mortgage. A reverse mortgage allows you to access the equity in your home, either in a lump sum, periodic payments, or a line of credit.
The great thing about reverse mortgages is that you don’t have to pay interest on the funds while you’re alive. However, the balance is due if you leave the home for 12 months or longer. To qualify, you must be at least 62 years old and have significant equity in your home—typically over 50%.
Additionally, there are other government benefits that might help, like Supplemental Security Income (SSI). SSI is a monthly benefit paid by the Social Security Administration to low-income seniors, as well as the blind and disabled. For 2025, the federal maximum SSI amount is $967 per month for an individual or $1,450 per month for a married couple. Some states may even add additional funds to this.
It’s Time to Explore Your Options
If you haven’t explored all the available options, now is the time to start. Look into different ways of supplementing your Social Security benefits, and don’t be afraid to ask for advice from professionals to make the best choices for your situation. Even if some options aren’t available to you right now, keep them in mind for the future. Your situation might change, and having a plan in place can help ensure a more comfortable retirement.
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