Social Security won\u2019t be enough for many to get through retirement \u2014 yet many Americans are relying heavily (or solely) on it to fund their golden years.<\/p>\n
More than half (52%) of working Americans expect to rely on Social Security benefits to cover necessary expenses when they retire, according to Bankrate\u2019s 2025 Social Security Survey. And more than a quarter (28%) expect to be \u201cvery reliant.\u201d<\/p>\n
However, they\u2019re also concerned that funds will run out before they\u2019re able to claim them. That\u2019s why getting diverse income streams set up now can help prepare you for monthly income when you\u2019re no longer working a 9 to 5 \u2014 and in case one income stream becomes negatively impacted.<\/p>\n
The Social Security and Medicare trust funds are just eight years from insolvency, according to the latest annual Trustees\u2019 Reports from both organizations. That means beneficiaries could face a 23% cut to their benefits by 2033. (1)<\/p>\n
\u201cThe looming insolvency of Social Security\u2019s retirement program will lead to a 23 percent across-the-board benefit cut when today\u2019s 59-year-olds reach the Full Retirement Age (FRA) and when today\u2019s youngest retirees turn 70. On a theoretically combined basis, beneficiaries will face a 19 percent benefit cut just one year later,\u201d according to analyses from the Committee for a Responsible Federal Budget.<\/p>\n
At the same time, the current administration has slashed staff at the Social Security Administration (SSA), leaving remaining workers struggling to service millions of Americans. (2)<\/p>\n
So there\u2019s a legitimate reason for working Americans to be concerned. Regardless, even if a solution is found and benefits aren\u2019t slashed, the average Social Security retirement benefit right now isn\u2019t enough for most Americans to live comfortably in retirement if they don\u2019t have other sources of income.<\/p>\n
As of August 2025, the average Social Security retirement benefit for a retired worker was $2,008 per month. That\u2019s just $24,000 a year. (3)<\/p>\n
That could be much less depending on your work record and when you claim your benefit; if you don\u2019t wait until your full retirement age of 67, your benefit will be permanently reduced.<\/p>\n
The average retired household (from age 65 to 74) spends about $5,400 a month, or $65,000 a year, in retirement on essential and discretionary items, according to the Consumer Expenditure Surveys (CE) program from the Federal Reserve Bank of St. Louis. (4) So the average Social Security retirement benefit wouldn\u2019t be enough, even if two spouses were each receiving a check.<\/p>\n
However, Social Security was never designed to fund the entirety of a person\u2019s retirement; rather, it was meant to be part of a broader plan that included pensions or employer-sponsored retirement plans, as well as personal retirement savings.<\/p>\n
Read More: Vanguard reveals what could be coming for U.S. stocks, and it\u2019s raising alarm bells for retirees. Here\u2019s why and how to protect yourself<\/a><\/p>\n Pensions: If you\u2019re a government worker, or one of the 15% of private-industry workers with access to a traditional pension, that could be an important part of your retirement income. (5)<\/p>\n Retirement accounts: While not everyone has a traditional pension, you may have access to an employer-sponsored retirement account, such as a 401(k) or 403(b) plan \u2014 and if your employer matches your contributions, you can significantly boost those savings.<\/p>\n You can also set aside money for retirement in a traditional IRA (individual retirement account), which can lower your current taxable income (you pay taxes upon withdrawal). However, both 401(k)s and IRAs offer Roth versions, wherein you contribute after-tax dollars and don\u2019t have to pay taxes on qualifying withdrawals. (So tax considerations should be part of your retirement strategy.)<\/p>\n High-interest deposit accounts: You could also stash money away in certificates of deposit (CDs), money market accounts and high-yield savings accounts (though do your research to get the best CD interest rate).<\/p>\n The advantage is that your money is more easily accessible. With a high-yield savings account, you can access your money whenever you want; with a CD, your funds are locked for a set period.<\/p>\n Dividend-paying stocks: If you invest in stocks and bonds, you may also want to consider dividend-paying stocks, since they provide a regular income stream from dividend payments \u2014 on top of appreciation. Dividends tend to pay quarterly, though some pay monthly.<\/p>\n Annuities: Another way to get a guaranteed stream of income in retirement is through an annuity with your insurance company. This is funded in advance, either through a lump sum or series of payments, and the money earns interest.<\/p>\n Then, the initial investment and growth is paid back to you over a specified period or your lifetime (usually monthly). However, annuities do come with fees that could affect long-term returns.<\/p>\n Real estate: If you\u2019re willing to take on the responsibility of becoming a landlord, you could generate a regular stream of income from rent, though this should be weighed against the cost of owning a property and becoming a landlord.<\/p>\n For example, you\u2019ll have to pay taxes on rental income, maintenance, and if you have a mortgage on the house, you may also be required to buy landlord insurance and maintenance.<\/p>\n But this is not the only way to invest in real estate. You could also consider investing in private real estate funds (skipping the hassle of direct ownership), accessing the home equity market or tapping into the residential or commercial real estate markets through investment platforms.<\/p>\n When it comes to pulling together a paycheck from your retirement accounts, there\u2019s a lot to consider. You may want to consult with a qualified financial advisor to help you reach your goals \u2014 without being overly reliant on Social Security.<\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Committee for a Responsible Financial Budget (CRFB) (1<\/a>); NPR (2<\/a>); Social Security Administration (3<\/a>); Federal Reserve Bank of St. Louis(4<\/a>); U.S. Bureau of Labor Statistics (5<\/a>).<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Social Security won\u2019t be enough for many to get through retirement \u2014 yet many Americans are relying heavily…\n","protected":false},"author":2,"featured_media":370964,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,155,75318,181929,147,530,1666,13492,733,1552],"class_list":{"0":"post-370963","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-dave-ramsey","10":"tag-income-stream","11":"tag-income-streams","12":"tag-personal-finance","13":"tag-personalfinance","14":"tag-retirement","15":"tag-retirement-plans","16":"tag-social-security","17":"tag-social-security-administration"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/370963","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=370963"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/370963\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/370964"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=370963"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=370963"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=370963"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}