According to the Social Security Administration (SSA) statistics regarding retirement preparedness in the US. are startling:
For 61 percent of elderly beneficiaries, Social Security provides the majority (more than 50 percent) of their cash income.
For 33 percent of them, it provides 90 percent or more of their income.
The maximum benefit at full retirement age in 2016 was $2,639 but the average Social Security retirement benefit in June 2016 was about $1,350 a month, or a bit over $16,000 a year.
This means that only about 40 percent of retirees have enough saved so that their retirement income is in excess of $16,000 annually. Not mentioned in the interview is that these monthly benefit amounts will be reduced monthly for the cost of basic Medicare which will be $134 per month in 2017.
What will your social Security check look like? There’s a way to find out. Read the full story on this topic on our sister site, Living on the Cheap.