Can You Retire on Social Security Alone? Here's the Truth.

There's a reason working Americans are encouraged strongly to save for retirement: If you retire on Social Security alone, you may end up struggling to cover your costs.

But just how bad is it to retire on just Social Security? Here's what your income might look like.

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What the typical Social Security benefit amounts to today

Social Security's average retirement benefit as of July is around $2,086 per month. On an annual basis, that's about $25,000 a year.

If you're in line for a similar benefit, it may be feasible to retire on Social Security alone if you have very low expenses. But if that's not the case or your benefit is smaller, retiring on only those benefits could be financially disastrous.

One thing to remember about Social Security is that it's not supposed to replace your paycheck in full. If you earn an average wage, you can expect Social Security to take the place of roughly 40% of it.

That assumes benefits aren't cut, which isn't a given. Social Security is facing some serious financial difficulties. If Congress doesn't implement reforms, benefits could be reduced by up to 22% over the next decade, according to the program's most recent update from the Trustees.

If we apply a 22% cut, it takes the average monthly Social Security benefit down to roughly $1,627. On an annual basis, that's about $19,500.

For a single person, the poverty line in 2026 is $15,960. An annual income of $19,500 isn't much higher.

It's best to have other income to count on

While it's technically possible to retire on only Social Security, especially if you're in line for a larger benefit or can delay your benefit until age 70 for larger checks, it's not the best idea to plan on that. A better bet? Try to save something for retirement so you have supplemental income.

Contributing even $50 a month to an IRA or 401(k) could add up over time. And if you're nearing retirement and missed the opportunity to build savings, try supplementing your Social Security by working.

The key is to make sure you have enough income to cover your needs without constantly pinching pennies or, worse yet, going to extremes like skimping on meals and medication to make the math work.

Finally, recognize that Social Security does not have great inflation protection. The program's cost-of-living adjustments tend to erode seniors' buying power over time. So that's another reason to plan on some type of supplemental income, even if it's only a small amount.

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