40% of Older Americans Rely on Social Security for Retirement Income, But Why That's a Risky Move
Why Relying on Social Security Alone is Risky
Many Americans aged 55 to 65 anticipate Social Security being their main source of retirement income, but that may not be sufficient. The replacement income from Social Security might not cover your expenses comfortably.
The Financial Challenges of Social Security
Social Security benefits may be cut in the future due to financial constraints, impacting the amount of income retirees receive. Depending solely on these benefits could result in a shortfall.
Creating a Diversified Retirement Plan
To avoid financial difficulties in retirement, it's essential to diversify income sources. Working longer, saving more in your 401(k) or IRA, and exploring part-time work or renting out property are ways to supplement your retirement income.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.