Are You Prepared for Retirement on the Average Social Security Benefit of $1,907 a Month?

Planning for Retirement on Social Security Income

You might struggle if you attempt to retire without any savings or outside income. Social Security is a program that millions of seniors rely on immensely. But if you're in the process of planning for retirement, it's important to have realistic expectations for the program -- and to realize that retiring on Social Security alone just isn't a good idea.

Your monthly benefits may not be enough

At the start of 2024, the average monthly Social Security benefit was $1,907 after recipients saw their payments rise thanks to a 3.2% cost-of-living adjustment. Now if you're someone who lives very modestly as a pre-retiree, then it may be possible to live on somewhere in the vicinity of $1,907 a month in retirement. But it's a situation that may also end up making you quite miserable.

Save for retirement so you're not left struggling

You may have every intention of living frugally once you stop working for good. But even so, you may find that living on $1,907 a month just isn't doable, especially when you factor in unavoidable expenses like having to pay for healthcare.

1. As a general rule, you should anticipate needing about 70% to 80% of your previous income once you retire.
2. For most seniors today who were average wage-earners during their careers, Social Security will only replace about 40% of their former income.

Retiring on Social Security alone is a move that generally won't work out well, regardless of what the average monthly benefit happens to be at the time. So you're really best off putting yourself in a situation where you have additional retirement income at your disposal.