54% have returned to work or considered going back due to low Social Security benefits
Of Social Security beneficiaries surveyed by The Motley Fool, 54% have returned to work or are considering doing so because Social Security does not provide enough income to support their lifestyle.
The average monthly Social Security payment in 2025 is $1,864. The average retirement check from Social Security is $2,008, according to the U.S. Social Security Administration. That does not cover even half of what Americans aged 65 and older spent per month in 2023: $5,007, according to the Bureau of Labor Statistics. Considering that only 54% of American households had a retirement account in 2022, according to the Federal Reserve, it’s not surprising that a significant percentage of retirees surveyed feel as though they need another source of income.
Social Security is only supposed to cover 40% of the average worker’s salary. In reality, however, retirees depend more heavily on Social Security than that.
Here’s how much respondents to The Motley Fool’s Annual Social Security Cost-of-Living Adjustment Survey rely on Social Security for their monthly retirement income:
- 29% rely exclusively on Social Security Benefits.
- 29% rely heavily on Social Security benefits.
- 24% rely moderately on Social Security benefits.
- 14% rely slightly on Social Security benefits.
- 5% don’t rely on Social Security benefits at all.
Retirees may want to return to work for a variety of reasons: for a sense of purpose, to provide daily structure, to support a charity or other cause, and more. But the survey results suggest that financial stability and maintaining their current lifestyle are driving factors for retirees thinking about finding new jobs.
That said, there is a drawback for retirees going back to work prior to their full retirement age (FRA). Working in retirement prior to full retirement age can result in some Social Security benefits being clawed back, Brokamp said.
“In 2025, seniors who wouldn't hit their full retirement age at any point during the year would begin losing $1 in benefits for each $2 in earnings above $23,400,” Brokamp said. “Those who are reaching FRA at some time during the year will be allowed to earn $62,160 per year in 2025 before losing $1 in Social Security income for every $3 extra they make.”
Inflation raises the need for strategic retirement planning
Retirees are feeling the bite of inflation: 54% of respondents to The Motley Fool’s Annual Social Security Cost-of-Living Adjustment Survey find the COLA insufficient, and 54% have gone back to work or are thinking about doing so.
Tracking spending and altering budgets to account for product-specific inflation are two strategies retirees can use to make their Social Security payments go further, Brokamp said. “Start by tracking your spending to find opportunities for cost-cutting that won’t significantly lower your day-to-day enjoyment of retirement,” he said.
“Also look for ways to replace items that have gone up in price with others that have seen less inflation. For example, the price of beef has gone up 16.6%, whereas seafood is up 6.7% and chicken 4.2%,” Brokamp said.
While retirees grapple with current conditions, younger Americans may be asking how much they need to save for retirement. That question gets to the heart of retirement planning. The data suggests that absent a plan, retirees may have to compromise on their lifestyle or return to work.
Methodology
The Motley Fool surveyed 2,000 Americans who receive Social Security benefits via Pollfish on Oct. 2, 2025. Results were post-stratified to generate nationally representative data based on age and gender. Pollfish employs organic random device engagement sampling, a method that recruits respondents through a randomized invitation process across various digital platforms. This technique helps to minimize selection bias and ensure a diverse participant pool.
