62% of Women Say Social Security Will be Main Source of Retirement Income

May 16, 2018

From USA Today:

Social Security provides critical benefits to millions of retired seniors. But relying too much on those benefits could spell trouble once your career comes to a close.

Unfortunately, it seems like a large chunk of women are doing just that. An estimated 62% of female workers expect Social Security to be their primary source of income in retirement, according to new data from Nationwide. Worse yet, 18% of women are looking to Social Security to provide more than 90% of their senior income. That’s just downright unrealistic.

Social Security alone can’t pay the bills

Contrary to popular belief, Social Security was never designed to sustain retirees in full. Rather, it was designed to supplement seniors’ income. These days, those benefits will replace roughly 40% of the typical worker’s pre-retirement income. Most seniors, however, need more like 80% of their previous earnings to live comfortably — and by “comfortably,” we’re talking about having enough money to cover all basic living expenses. Those wishing to travel extensively or engage in a host of leisure activities will need considerably more.

And that’s precisely why it’s so dangerous to rely so heavily on Social Security. These days, the average recipient gets just $1,404 per month, or $16,848 per year. If you’re among those women who expect Social Security to cover upward of 90% of your expenses, you may want to reconsider — and start ramping up your savings game.

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