There’s good news and bad news for future Social Security beneficiaries. The good news is, when your time comes, you’ll be receiving something. The bad news is, it probably won’t be much.
As of this year the average monthly Social Security payment is a mere $1,976, or $23,712 on an annualized basis. That’s much less than the $60,000 the Bureau of Labor Statistics says the average 65-and-up U.S. household spends every year these days, even if the majority of those households are home to two (or more) beneficiaries or income earners.
Then again, Social Security was never meant to make up the entirety of your income in retirement. It was only meant to be a part of it, ensuring everyone has at least a little something to live on. The program itself reports that Social Security income currently only accounts for between one-third and two-thirds of most recipients’ retirement income. The rest has been and remains the net result of individuals’ own savings. Obviously the more you can save and grow your nest egg while you’re working, the better.