1. Social Security is designed to replace about 40% of pre-retirement income

Many Americans make the mistake of thinking that Social Security is enough for retirement. While the benefits you claim can be extremely helpful, the program is designed to only replace 40% of what you were previously earning.

Thinking about your expenses, try to figure out what you might have to cut and how much you would have to sacrifice in order to live off just 40%. Not so easy, is it? That’s why financial advisors recommend you supplement with other savings so that you won’t have to rely solely on your Social Security.