Social Security is undoubtedly one of the most important programs in US history as it helps to provide vital support to seniors. Unfortunately, many people have misconceptions about what Social Security can do for them when they retire. Discovering the truth can come as a huge shock, and it can leave you financially unprepared for retirement if you’ve made your plans based on wrong assumptions.
To make sure this doesn’t happen to you, learn the truth about these three shocking facts about Social Security now, while hopefully you still have time to take action to strengthen your retirement security.
1. Benefits are only meant to replace 40% of income
One of the biggest shocks many retirees face is the discovery that their Social Security benefits aren’t designed to provide enough income for retirement — and aren’t even close to that.
If you stop receiving paychecks, you will generally need enough income to replace about 80% of the money you received from your employer. But Social Security checks aren’t designed to offer that much. Instead, you get about 40% of the pre-retirement income from them, so you’ll have to get the rest of your money from other sources.