When Social Security was signed into law in 1935, it was a revolutionary idea: a government-backed retirement safety net to protect older Americans from poverty in old age. It was born out of the Great Depression, a time when the elderly had no real protections and widespread poverty was a brutal reality.
The program was never designed to provide a luxurious retirement. But over time, the way people talked about Social Security shifted. Many began to think of it as the retirement plan—a dependable, monthly check that would cover their needs for the rest of their lives.
That’s not the reality today. And it’s crucial we face that.
A Promise Made…
The Social Security Act created a system where workers and employers contributed payroll taxes to fund retirement income. It was a promise that, after a lifetime of work, Americans wouldn’t be left completely on their own.
For generations, this promise helped older Americans stay afloat. But from the beginning, it was designed as a supplement, not a standalone solution. And with today’s rising costs of housing, healthcare, and daily living, the original promise has stretched far beyond its intent.
…And the Reality Now
Let’s look at the facts:
- The average monthly Social Security benefit for retired workers is approximately $1,999.97 as of April 2025.1
- That’s just $23,999.64 per year — below the federal poverty line in many areas for individuals.2
- Approximately 67% of seniors rely on Social Security for more than half of their income, and about 26% rely on it for 90% or more.34
- For someone with no other savings or income, living on Social Security alone often means living in poverty.5
Meanwhile, life expectancy has increased, pensions have disappeared, and the cost of living continues to rise. Social Security was never designed to shoulder that burden alone.
Why You Can’t Rely on Social Security Alone
You need more than Social Security to retire with stability and dignity. Here’s why:
- It Doesn’t Keep Up with Inflation: Cost-of-living adjustments (COLA) happen yearly, but they rarely keep up with true inflation, especially in housing and healthcare.
- It Wasn’t Built for Full Retirement: The original design was to supplement other retirement savings and income, not replace them.
- It’s Politically Vulnerable: While Social Security isn’t going away anytime soon, long-term funding concerns are real. Benefits may be adjusted in the future.6
So What Should You Do?
It’s simple in principle but takes work: you need a plan for your own future.
- Start saving early and often in retirement accounts like a 401(k) or Roth IRA.
- Build an emergency fund to reduce the chance you’ll need to tap into retirement money early.
- Focus on eliminating debt, especially high-interest debt like credit cards.
- Consider multiple income streams in retirement: investments, part-time work, real estate, or small business income.
Don’t let the idea of “just making it work” become your retirement plan.
What If You’re Already at Retirement Age With Little Saved?
This is the hardest part—but also the most important.
Millions of Americans are already living the retirement reality most people hope to avoid. According to the Congressional Research Service, approximately 5.8 million people aged 65 and older lived in poverty in 2021.7
If you’re there now, or know someone who is, there are still options to help. They might not be ideal, but they can make a real difference.
Work Longer to Supplement Income
If you’re physically able, working part-time can stretch your monthly income. This isn’t to delay Social Security benefits — we recommend claiming as soon as eligible — but to supplement your benefits and avoid falling deeper into financial strain.
Downsize or Sell the Home
Housing is often the largest expense—and for homeowners, the biggest untapped asset. Moving to a smaller or more affordable space can free up equity and lower monthly costs.
Rent Out a Room or Share Your Space
If selling isn’t viable, consider taking in a roommate or renting part of your home. This can offset costs and bring in steady income.
Move In With Family
Multigenerational living isn’t always easy, but it can reduce expenses for everyone involved and create shared responsibilities.
Tap Into Assistance Programs
Explore local, state, and federal programs like:
- Supplemental Security Income (SSI)
- SNAP (food assistance)
- Medicare Savings Programs
- Utility or property tax relief
Seek Out Help
Organizations like the National Council on Aging and local agencies can help create a realistic plan, review options, and connect you to vital resources.
Retirement Gap Calculator
Want to see how much of a gap you might face between your expected retirement expenses and Social Security income? Use this Retirement Gap Calculator to estimate your personal situation. Paste your details, and it will help you understand where you stand — and what you might need to save or earn to retire comfortably.
Retirement Gap Calculator
Estimate your monthly retirement income gap
No Shame—But Urgency Is Real
If you’re struggling, you are not a failure. Many people today did everything “right” but were impacted by medical costs, job loss, caregiving, inflation, or unexpected life events.
But the situation does require action.
And for younger readers? Let this be your wake-up call. The most compassionate thing you can do for your future self is plan now. Start saving. Learn about retirement options. Build the habit of living on less than you make.
Because while Social Security is a promise, it was never meant to be the whole plan.
Need help getting started with retirement planning, debt payoff, or budgeting? Reach out for a free consultation. Your future self will thank you.
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