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How Does your Social Security payment compare? - Investopedia
Ever wonder how your monthly Social Security benefit compares to others? For some of us that may make us feel fortunate, and for other not so much so. Fact is, the monthly benefits each of us receive from SS may vary considerably, depending on how much money you made during your working years. Your monthly SS amount is directly related to your average monthly income during the 35 years in which you earned the most, and just as our lifetime average income varies, so will our SS benefits. On average, however, all SS recipients at age 65 get about $1,590, with men faring a little better than women the same age. And that is hardly enough to live on these days.
It’s important to understand that Social Security was never meant to be your sole source of retirement income. Rather it has always been only about 40% of what is needed to live, so the rest needs to come from somewhere. And “somewhere” is usually your retirement savings. But here again, many American fall short of a nest egg sufficient to supplement their income needs in retirement. So what is one to do?
At 65, the average Social Security benefit and a modest 401(k) savings leave many retirees in a precarious financial position. While some can make ends meet in lower-cost areas, others may face tough decisions like cutting expenses, downsizing, or finding additional income sources. And that means planning ahead for your retirement, as explained in this Investopedia article by Jonathan Ponciano.