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How Much Income Will Social Security Replace?
Kailey Hagen addresses the question that many retirees have about income replacement. Social Security was designed to replace about 40% of pre-retirement income, which means it falls far short of being income one can live on. But for some, income replacement is much lower. Social Security’s buying power has been declining over time, mainly because of how cost of living adjustments are calculated. Hagen notes there isn’t much people can do other than to save more before starting Social Security. Once benefits are started, there are three options: withdraw an application with one year, suspend benefits at full retirement age (but one must go without that income) to earned delayed credits, and/or try to enroll in Supplemental Security Income (SSI), a program for the blind, disabled, and low-income seniors. Full piece here.