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Here's why Social Security can't be your retirement plan
USA Today • • business
Key Points:
- Nearly half of older American workers expect to rely mainly on Social Security for retirement income, a concerning trend given Social Security typically replaces only about 40% of pre-retirement earnings.
- Retirement experts recommend diversifying income sources beyond Social Security, including savings, investments, and pensions, as relying solely on Social Security is unlikely to provide sufficient income.
- Surveys show that younger workers are less likely to expect Social Security as their primary income source, but reliance increases significantly with age, reaching over 40% among workers 55 and older.
- While some retirees, especially lower-income individuals or those with paid-off homes, can manage primarily on Social Security, experts warn that many relying solely on it may face financial hardship.
- Despite fears fueled by high retirement savings targets, many retirees report financial stability, often due to Social Security, although substantial numbers of older adults still struggle with basic expenses.
