Social Security’s “Expectation Gap” and What You Can Do About It

A lack of understanding about the calculation of eventual Social Security benefits can create serious problems for seniors entering their retirement years. Studies have shown that there is a fairly substantial gap between what Social Security benefits are designed to provide and the amount of income retirees will need from other sources (pensions, savings, working), so it becomes critical first to be aware of the gap, and second to take steps to prepare for it.

With estimates that say retirees need somewhere around 80% of their pre-retirement income to have a comfortable lifestyle, and with Social Security designed to replace half of that income, being unaware of the gap can create a shock at a time when there is little opportunity to react to it. The Motley Fool’s Maurie Backman, in a post on, provides thoughts on the spending areas one needs to consider in planning for retirement, and offers the oft-repeated observation that “Social Security will not cover your bills as a senior, and the sooner you accept that reality, the more opportunity you’ll have to compensate.”

Read Ms. Backman’s post here, and know that the Association of Mature American Citizens (AMAC) likewise advocates for the importance of taking personal responsibility for accumulating a retirement nest egg on your own. AMAC’s proposed legislative framework, as presented in “The Social Security Guarantee Act of 2017” now being promoted in Washington, addresses this issue specifically with the inclusion of provisions for an “Early Retirement Account” (ERA) designed to provide a means for all earners to have more income available at retirement. Learn more about AMAC’s plan to address the overall Social Security solvency problem here…

Finally, if you’re in need of guidance on understanding the complexities of Social Security, the AMAC Foundation can help you. The Foundation offers a free-to-the-public service to handle your personal questions about Social Security and how it fits you individual situation. Learn more about this highly-acclaimed Social Security Advisory Service and how to access it here…


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