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Can You Live On Social Security Alone? - GoBannkingRates
Unfortunately for some people, Social Security is their only source of retirement income, but it was never intended to be the sole source of retirement funding. President Roosevelt, when signing the Social Security Act into law in 1935, said that Social Security cannot provide for all of life’s needs, but rather will “give some measure of protection to the average citizen” in retirement. Thus the program was never expected to replace more than 40% of a beneficiary’s pre-retirement income. Nevertheless, it remains a “major” source of income for almost every American senior.
As might be expected, the degree to which people rely on Social Security depends largely on whether you have other sources of retirement income (and how much) – perhaps from a monthly pension or “nest egg” savings to supplement your retirement income needs. A recent study revealed that Social Security represents about 41.5% of income overall for those who collect benefits but, interestingly, that percentage varies considerably depending on where you live. This GoBankingRates article by Vance Cariaga discusses how reliance on Social Security varies by geographic area of the United States.