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More Than Six in Ten Americans Are Placing Their Financial Futures in the Hands of Social Security.

As a retiree, if you desire a comfortable lifestyle, you’ll need a steady stream of income. A harmful fallacy about Social Security is causing some Americans to overestimate how much money they’ll have when they retire, which might leave them short.

The truth about Social Security benefits is something you owe it to yourself to learn and not to be deceived by the widespread misunderstanding that affects the majority of workers.

Retirement Readiness Research Series results provided by the Insured Retirement Institute show that 62% of current workers feel they can survive on Social Security benefits alone in retirement, according to the trade association. It is difficult, if not impossible, to reduce to the point where this can be accomplished.

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Social Security was never intended to be a sole source of income for retirees, and it won’t cover even the most basic needs for the vast majority of those who have already retired.

The program’s goal is to cover half of what the average older citizen needs in a monthly income. When people leave the employment, they should aim to replace about 80% of their pre-retirement income, and Social Security is designed to replace around 40% of that amount. Consequently, retirees would be forced to live on less than half of their pre-retirement income without additional savings.

That may not be possible even if you downsize significantly by relocating to a less expensive home and eliminating most of your entertainment expenditures. As a retiree, your healthcare bills are likely to skyrocket, making your situation much worse.

When you analyse that figure, it’s simple to understand why the numbers don’t add up — especially when you also have to account for taxes on your Social Security income and inflation, which is chipping away at their purchasing power.

SOCIAL SECURITY IS NOT ENOUGH TO SUPPORT YOUR LIVING

You can’t merely downsize and rely on Social Security if you have a little investment account. Don’t put yourself in that position; the quality of your life will suffer greatly as a result.

Investing in your future should be viewed as a need, not a luxury. Having to pay off your debts now is an obligation you owe your future self, as you will no longer be receiving income.