The Mistake: Assuming Social Security Benefits Can Fully Cover Your Living Expenses
Living off Social Security alone is something a lot of American seniors are, sadly, unable to achieve. A small percentage might due to budgeting and cutting down a majority of their living expenses. But not everyone is able to do that. That’s because when it comes down to it, benefits aren’t all that impressive.
In 2019, retirees received $1,471 per month on average. Of course, your numbers could be lower or higher. For most of us, this simply isn’t enough to get by without bumping into scary financial issues later on in life.
Solution: Create a Well-Thought-Out Financial Plan Before Retiring
Your Social Security should not be your only source of income once you reach your retirement age. Instead, focus on other accounts such as 401(k)s and IRAs. Financial advisors also say we should focus on passive forms of income that can generate steady streams of cash.
The bottom line is that when it comes to your Social Security, you shouldn’t wait until the last second to come up with a plan on what you’re going to do.
Even if you feel like it’s ‘too late’, you should still do your best to save up as much money as you can. If that means budgeting to the last penny, we know it’ll be worth it even if it may seem impossible at first.
