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.