SSA doesn’t hide the truth: “Social Security was never meant to be the only source of income for retirees”
Social Security has been making monthly payments to retired workers for nearly nine decades. It has been an effective program at reducing poverty among the elderly and has expanded to provide financial assistance to workers who become disabled and families of those that have died. Nearly all American workers are now covered by Social Security, contributing to the program through a dedicated payroll tax. Those contributions are used to pay the benefits of current recipients, and any money leftover is put into a trust fund to support the longevity of the program, and not into a dedicated account for the contributor explains the Social Security Administration in its informational pamphlet on Social Security.Social Security will only be a part of your retirement incomeSince its inception though, “Social Security was never meant to be the only source of income for retirees,” states the SSA. Regardless of when workers begin claiming Social Security, their monthly payments will never match 100% of their pre-retirement income.The SSA points out that a person who begins to claim their benefit at full retirement age, which is 67 for anyone born in 1960 or later, that the percentage of their pre-retirement income they will receive ranges from 79% for very low earners to roughly 28% for maximum earners.The percentage that they receive will be lower if a beneficiary starts claiming Social Security payments before full retirement and higher if they wait to claim later with the maximum percentage available at 70 years of age.The agency notes that most financial advisors suggest that a person will need to have a nest egg that can cover roughly 70% to 80% of their monthly pre-retirement income to live comfortably in retirement. This would include Social Security, investments, and other savings.Related storiesGet closer to the game! Whether you like your soccer of the European variety or that on this side of the pond, our AS USA app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more. Plus, stay updated on NFL, NBA and all other big sports stories as well as the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.And there’s more: check out our TikTok and Instagram reels for bite-sized visual takes on all the biggest soccer news and insights.