Planning to Retire on Social Security Alone in 2027? Here's What Your Monthly Income Might Look Like

Many people don't plan to retire on Social Security alone. Rather, things just work out that way.

But if you're planning to wrap up your career in 2027 and you don't have retirement savings to fall back on, you may have no choice but to rely on Social Security for 100% of your income. And that's a scenario that could prove disastrous.

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What retiring on Social Security alone looks like today

Once 2027's 3.6% cost-of-living adjustment is applied to benefits, the average Social Security check is expected to be $2,170. That's an annual income of about $26,040.

It's also an income that doesn't leave much breathing room for surprise bills or extra costs. In fact, even without things like home repairs or medical expenses popping up, it's extremely difficult to live on $26,000 alone given current costs.

Of course, retiring on Social Security alone in 2027 doesn't automatically mean only collecting $2,170 per month. If you were a higher earner, you may be eligible for a significantly larger benefit.

In fact, Social Security's maximum full retirement age benefit in 2027 is $4,188. On an annual basis, that's a little more than $50,000.

But if you're eligible for a benefit that size, it means you earned higher-than-average wages during your career. As such, you may find it difficult to limit your annual spending to $50,000.

It's one thing to live on $50,000 in Social Security when you're used to earning a $60,000 salary. If you're used to a $150,000 paycheck or more, a $50,000 annual income represents a significant pay cut.

Try to have other income streams to rely on

There's nothing wrong with factoring Social Security into your retirement income plans. But retiring on only those benefits is a decision you might regret.

If you're planning to retire in 2027 but don't have savings to supplement your benefits, you may want to see if it's possible to work a couple more years to build up a small nest egg. If that's not feasible, consider getting a part-time job once you retire from your main one. That job can be gig work you do when it's convenient, but the key is to have a way to bring additional income into the mix.

And if working isn't in the cards, you may be able to turn your home into an income source. Renting out a room or a finished basement could nicely supplement your Social Security and help you avoid constant financial stress.

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