The average Social Security benefit is about $1,564 per month, or about $18,768 per year. That’s closer to what most people can expect, but it may still be too high for younger workers.
The Social Security Fund reserves are nearly exhausted and the latest estimates predict that they will run out of money by 2034. If that happens, the program could face benefit cuts if the government doesn’t come up with an alternative funding strategy. There’s no way of knowing what will happen, but it’s not unreasonable to think the benefits could shrink by as much as 24%.
Based on all of this, it’s not realistic to assume that Social Security will cover all or even most of your expenses when you retire. If you want a comfortable future, you should take steps now to increase your personal savings.
How do you get the money you need for your retirement?
You can count on Social Security benefits as long as you’ve worked long enough to earn 40 credits (where one credit equals $1,510 in income in 2022 and you can earn up to four credits a year) or you’re married to someone who is eligible. comes. But you need to make retirement savings a priority if you want to live comfortably when you’re older.
Get into the habit of making regular monthly contributions to a 401(k), IRA, or other retirement account. If you haven’t already, find out how much you need to save for retirement and use this as your guide. But be prepared to adjust this if your plans for your future change.