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from NCOA
For America’s retirees, Social Security is a vital safety net. But it was never intended to be our only source of income after leaving the workforce.
In reality, Social Security is only designed to replace about 40% of pre-retirement income. This leaves a big gap for everyday costs like housing, groceries, and health care—expenses that don’t suddenly evaporate once our paychecks stop. Since today’s older adults are living longer than any generation before them, closing that gap takes thoughtful planning and, in many cases, additional income streams.
For most of us retiring in the next few years, the honest answer to whether or not Social Security is enough is “probably not.” According to Kiplinger, the average monthly Social Security check for retired workers was $2,002.39 in May 2025.
While that may sound like a decent amount, it does not consider the rising costs of rent, utilities, groceries, and health care. And when everyday expenses outpace annual cost-of-living adjustments (COLAs), a once-comfortable budget can quickly start to feel tight.
Take this real-world example of MC, a 77-year-old New Jersey resident. MC lives on less than $20,000 per year in Social Security income. Even with careful budgeting, she struggles to pay for rent, utilities, and food. Plus, her degenerative vision loss means she must pay for rides to attend medical appointments, do errands, and take part in social activities.
MC’s story is not unique. NCOA’s research with the LeadingAge LTSS Center @UMass Boston shows that about half of households with adults age 60 and older don’t have enough income to cover their basic needs—even after counting Social Security benefits.
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