Bottom Line. Living on Social Security alone can be challenging and fraught with financial risk. While Social Security benefits provide essential support, they are insufficient to cover all living expenses, especially in the face of rising healthcare costs and inflation.
As of July, the average monthly check for a retired worker was $1,919, or about $23,028 per year. In other words, some Americans may be able to meet their basic retirement needs with Social Security benefits alone but for many households, it won't be enough.
A Social Security spousal rule that was around for decades ended this year for the last eligible retirees — those who turned 70 on Jan. 1, 2024. The rule allowed recipients to switch between their benefits and their spouses' to receive the maximum amount.
Spouses and ex-spouses
Payments start at 71.5% of your spouse's benefit and increase the longer you wait to apply. For example, you might get: Over 75% at age 61.
The first exception, which can be deemed as the Social Security spousal benefits loophole, works where an individual who remarries at 60 or later may still be entitled to Social Security survivors' benefits if the second marriage ends before the death of the first spouse.
Has your income declined or have you experienced a loss of financial resources? You may be able to get additional income through the Supplemental Security Income program, which helps seniors and the disabled who have limited income and financial resources.
If your spouse dies, do you get both Social Security benefits? You cannot claim your deceased spouse's benefits in addition to your own retirement benefits. Social Security only will pay one—survivor or retirement. If you qualify for both survivor and retirement benefits, you will receive whichever amount is higher.
The average household retirement income in the United States is $27,617, according to an analysis by Wisevoter of data from the U.S. Census Bureau's American Community Survey. However, depending on where you live, your local average may be much higher or lower.
Key Takeaways. Reducing your living expenses can help you live on Social Security alone. Waiting to take Social Security until age 70 will increase your benefit by 8% a year beyond your full retirement age. Medicare and Medicaid can help you pay healthcare costs in retirement.
You can start receiving your Social Security retirement benefits as early as age 62. However, you are entitled to full benefits only when you reach your full retirement age. If you delay taking your benefits from your full retirement age up to age 70, your benefit amount will increase.
Social Security is not meant to be your only source of income in retirement. On average, Social Security will replace about 40% of your annual pre-retirement earnings, although this can vary based on each person's circumstances. Learn more at www.ssa.gov/planners/retire.
Generally, a good retirement income is about 75% to 85% of the pre-tax income earned in your last working year. This rule-of-thumb reflects the following assumptions: you have been saving about 15% of earnings annually, you will maintain a balanced budget and you will pay less in taxes during retirement.
Our previous study highlighted some of the best states to live on Social Security, with the top five being Mississippi, Wyoming, West Virginia, Iowa, and Georgia. Retirees can start by choosing places within these states to stretch their retirement incomes a bit further.
Each survivor benefit can be up to 100% of your benefit. The amount may be reduced if the women start benefits before their own full retirement age, but they don't have to share — the amount isn't reduced because you've had more than one spouse.
Have you heard about the Social Security $16,728 yearly bonus? There's really no “bonus” that retirees can collect. The Social Security Administration (SSA) uses a specific formula based on your lifetime earnings to determine your benefit amount.
Ninety-five percent of never-beneficiaries are individuals whose earnings histories are insufficient to qualify for benefits. Late-arriving immigrants and infrequent workers comprise the vast majority of these insufficient earners.
Living on Social Security alone isn't easy, but it's the reality for many seniors in America. According to the Center on Budget and Policy Priorities, roughly 40% of Americans ages 65 and older rely on Social Security for at least half of their incomes.
If you live in someone else's household and don't pay your food and shelter costs or pay only part of your food and shelter costs, your SSI benefit may be reduced by up to one–third of the SSI Federal benefit rate.
To qualify to get $144 added back to your Social Security check, you can enroll in a Medicare Advantage plan that offers a Part B premium reduction or giveback benefit.
A wife with no work record or low benefit entitlement on her own work record is eligible for between one-third and one-half of her spouse's Social Security benefit.
Over the last decade the cost-of-living adjustment (COLA) increase has averaged about 2.6%. The COLA was 3.2% in 2024. Nearly 68 million Social Security beneficiaries will see a 2.5% COLA beginning in January 2025.
For a spouse who is not entitled to benefits on his or her own earnings record, this reduction factor is applied to the base spousal benefit, which is 50 percent of the worker's primary insurance amount.