The Social Security program, which is a government system that supports Americans in their retirement, was not originally intended to be the sole means of income for retirees. Nevertheless, many elderly individuals in the United States have come to rely entirely on Social Security benefits to make ends meet.
On average, each retired employee’s retirement benefit equals about 40% of what they earned before retiring from work. Retirees are recommended to utilize their own savings or an employer’s pension to supplement their benefit payments.
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Many retirees, however, don’t have these other income sources and are forced to rely solely on their retirement benefit checks. This can be a challenge, but with some small sacrifices and smart financial moves, it is manageable.
A retiree from New Orleans who relies solely on her Social Security benefits shares her advice on how she manages financially.
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She started receiving Social Security disability benefits, which were then approximately $900 per month.
He has since received monthly payments of nearly $1,100 from the government. Once he turns 65, he will be eligible for an additional retirement benefit through the Social Security program, which he will also receive because his wife was eligible to receive a larger portion of his benefit after he passed away in 2009.
Certainly, $1,100 per month isn’t exactly a great deal of money to live on in today’s economy, and as Douglas mentioned to USA Today, “it was tough when I first got started.” But with a few smart financial tricks up her sleeve, Douglas is able to make her money last, even after paying off her $1,000 mortgage with her monthly benefit checks. Her savvy money moves include:
While she’s counting on having a bit more breathing room when she starts receiving her retirement benefits at 65, Douglas has been able to keep a roof over her head and bills paid with the help of her financial strategies despite living on a modest income.
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What should you do if you’re solely dependent on Social Security payments?
If you find yourself in a situation similar to Douglas’ when you retire, you may have to give up a few things also.
to explore your options.
Your benefits will rise for every month you delay receiving them, increasing by a certain percentage up to your 70th birthday.
In an ideal scenario, every American should have sufficient savings to complement their Social Security retirement benefit, but this reality eludes many retirees. On the other hand, creating a tight budget, making a few concessions, and taking advantage of specific government programs can help you make the most of your retirement benefit so you can live comfortably on a limited income during your golden years.
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This article is for information purposes only and shouldn’t be considered advice. It’s provided without any kind of guarantee or warranty.
