Retirement Social Security

24.6 Million Seniors Rely on Social Security Alone - Here’s How to Make Sure You Don’t Have To

Build retirement income beyond Social Security before you need it.

By Chris Lewis, CEPF , Edited by Laura Hohenstein

Updated Oct. 10, 2026

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An estimated 44% of the retirement-age population has no income besides Social Security. That's 24.6 million seniors living on an average monthly payment of $2,071 as of January 2026. Even with careful budgeting, this leaves them in a precarious position.

The good news is that if you're not retired yet, you still have time to contribute to a broader retirement plan, one that's not all in on Social Security. Here are some strategies to consider to prevent these monthly benefits from becoming your entire living wage.

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How much Social Security really provides

At around $2,071, or $24,852 a year, Social Security may not cover everything a senior needs to retire comfortably — and that's by design. For a medium-wage worker claiming at full retirement age, Social Security is designed to replace roughly 40% of pre-retirement earnings. Lower earners may receive a larger replacement percentage, while higher earners usually earn a smaller one. That means seniors who earned more in higher cost-of-living areas or with expensive medical or caregiving needs may fall very short of what's required.

The Social Security Administration emphasizes that it was never intended to be the only source of income, and upcoming uncertainty around reserve depletion only adds to the risk. The retirement and survivors trust fund is projected to pay full scheduled benefits through the fourth quarter of 2032; afterward, continuing income would cover an estimated 78% of scheduled benefits if Congress does not act.

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Use early compounding to fill in the gaps

Perhaps the strongest tool you have in your arsenal is compounding, or when investment returns earn their own returns over time, so existing money grows even before you contribute more to the pot. In this way, early contributions have more years to grow than later contributions.

Investing doesn't guarantee a certain return, even though experts cite an annual 7% or more as possible for markets over time. But to build a $1 million portfolio by age 65, someone at age 25 could invest around $381 for 40 years. Compare that to the $1,920 a month needed for someone only investing for 20 years. The later starter needs 5 times the monthly investment to reach the same $1 million goal.

If you're not already putting money away, start with 1% now, and increase that amount as your budget allows (or after a raise or other windfall).

Get every dollar of employer match

With a 401(k) match, an employer contributes additional retirement money when an employee contributes first from their own paycheck. The match is typically up to a stated percentage of pay, and this is essentially free money going into the account.

An employer matching 100% of the first 3% of salary, for example, would give a $60,000 salaried employee an additional $1,800 for the $1,800 they contribute on their own. Not taking advantage is leaving money on the table. It's also not making use of a valuable employee benefit that's often factored into the cost of that employee.

Read your plan's Summary Plan Description to see matching details for your employer and look at annual IRS limits on what you can contribute.

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Estimate your benefit before you plan

The average benefit amount is just that: an average. It may be significantly more or less than what you receive each month. Benefits depend on lifetime earnings, the number of years worked, and the age at which you claim. Checking your earnings record and retirement estimate through your Social Security account is the best way to project what you may receive and to identify errors or missing earnings.

Benefits can start at age 62, but claiming early permanently reduces your monthly benefit amount. Delaying up to age 70 increases it. Whether you can wait or not depends on your personal circumstances, but you should still calculate how much of a gap Social Security will fill based on actual, estimated payments.

Build more than one income source

Finally, a secure retirement may rely on a diversified mix of Social Security income, workplace savings, an IRA, a pension (if available), taxable investments, business income, or part-time work. Not every household will have access to all types of income, but focusing on building reliable, low-maintenance sources can increase stability as you age.

So, despite the term "multiple income streams" being used online to talk about property rentals or side hustles, income sources can be simple and traditional, too. Contributing to a 401(k) and keeping skills sharp for possible consulting work are two such examples. Any income stream that fits your risk tolerance, time, taxes, and liquidity needs should be considered.

Bottom line

Millions of seniors are living solely on Social Security, but you don't have to be one of them. By calculating your future payment, getting ahead on contributions, and mapping out multiple income streams, you can avoid the shock and surprise of not having enough.

Granted, the younger you are, the more time you have to change course. Start tomorrow with one simple step, whether it's adding $100 more to your monthly 401(k) contribution or eliminating high-interest debt. You don't have to replace Social Security altogether, just not rely on it for all of the heavy lifting.

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