Social Security Only Covers About 40% of Pre-Retirement Income. 4 Ways to Cover the Rest

In a perfect world, Social Security would cover 100% of your retirement costs, and you'd be free to keep all your hard-earned cash to cover your expenses today. In reality, Social Security was only intended to cover about 40% of the average worker's pre-retirement income each year, and for some, it doesn't even go that far.

That means you'll need other sources of retirement income to cover what Social Security doesn't. Everyone will have their own combination of strategies that works best for them, but here are a few of the most popular options worth considering.

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1. A spouse's Social Security benefit

Married couples have the benefit of two Social Security checks, and together, these may cover more than 40% of your household expenses. However, they're still unlikely to be enough all on their own.

You can stretch your checks further by coordinating with your spouse to decide when each person will sign up to maximize your household benefits. If one person has significantly outearned the other, this might involve the lower-earning spouse applying right away while the higher-earning spouse delays checks. Then, when the higher earner signs up, the lower-earning spouse can switch to a spousal benefit if it's larger than their own retirement check.

2. Personal savings

Personal savings are the ideal supplement to Social Security checks because you're free to spend the money on whatever you like. Of course, your lifestyle will depend on how much you're able to save throughout your career.

Do your best to make regular monthly contributions. If you qualify for a 401(k) match, put your savings here first. Remember to increase your retirement contributions whenever you get a raise.

3. A pension

Though it's less common today than in the past, some workers still qualify for a pension in retirement. This could pay you a regular monthly amount, similar to Social Security.

How much you'll get depends on how the pension is structured, what your salary was at the job, and how long you worked for the company. Talk with your employer to get an idea of how much your pension could provide for you in retirement.

4. A job

Working in retirement might sound like a bit of an oxymoron, but it's an increasingly common way for seniors to make ends meet. It gives you a steady paycheck, which can be a big help if you're worried about draining your personal savings too quickly.

You don't have to work in the same industry you've spent your career in, either. Feel free to look for something more flexible that aligns with your interests and goals.

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