8 Biggest Reasons Not to Rely on Social Security for Retirement

Planning for your later years requires making a sound financial plan. When you consider your future income sources, Social Security will likely play a big role. But you need income to supplement your benefits, as you can't count on retirement income from this entitlement program to be enough to support you.

Here are eight big reasons why Social Security alone isn't enough to fund your lifestyle after leaving the workforce.

The $17,166 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $17,166 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

If you're relying on Social Security, chances are good you're dooming yourself to a life of scrimping and saving as a retiree. In fact, you may not even be able to make ends meet and cover the necessities.

Social Security will replace only 40% of preretirement earnings, when retirees typically need twice that amount. Unless you want to drastically slash spending upon retirement, Social Security can't fund your later years.

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Medicare doesn't cover nearly as much as retirees think it does. There's no coverage for long-term care, vision, or dental, and prescription drug coverage can be limited. And even when your care is covered, there are coinsurance costs and premiums to worry about.

Retirees often end up facing thousands, or tens of thousands, of out-of-pocket costs. Paying these bills out of Social Security funds alone could leave you with nothing left to live on.

Sadly, Social Security benefits haven't kept pace with rising costs, and inflation has reduced the buying power of benefits by as much as 30% over two decades.

Since Social Security won't stretch as far as you get into the later years of your retirement, you could find yourself really struggling at a time when it's far too late to work to supplement your benefits.

Although you can vote, you can't personally control what changes -- if any -- lawmakers make to Social Security.

It's unlikely that they'll end the program or do anything to significantly reduce the income of current or future retirees. But you won't have any options if they do make changes that reduce the value of your benefits in your later years.

The $17,166 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $17,166 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

Unless lawmakers pass reforms, Social Security will have to reduce benefits dramatically when the program's trust fund runs dry.

If the money on Social Security's trust fund runs out, around 76% of benefits could be covered out of payroll taxes current workers are paying. But there'd be no source of money for the remaining 24% of promised benefits, so retirees wouldn't get them.

Changes to prevent this big benefits cut are likely. But if lawmakers shore up the program's finances by taking steps to raise the full retirement age, seniors won't get their full promised benefits anyway.

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Future retirees often develop strategies for when to claim Social Security, with the goal of maximizing monthly or lifetime income.

But when you retire and claim benefits is often out of your control, especially if health issues arise or you lose your job and don't want to find a new one at an advanced age.

Since your income is largely determined by the age you claim benefits (along with wages over your career), there's a real possibility you could end up with even less than you expected from Social Security.

Social Security retirement benefits can't be claimed until 62. There's a very real chance you may want to retire before then, and if so, you'll need a supplementary source of income until you can start your checks.

If you are married, chances are good both you and your spouse will get Social Security.

When one spouse dies, the surviving one gets to keep the larger of the two benefits. But this still means losing a full Social Security check and taking a huge income cut.

This is most damaging if you and your spouse received benefits of a similar amount. If you each had $1,500 per month coming in and your spouse dies, your household income is cut in half.

The $17,166 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $17,166 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies.

Having savings in retirement investment accounts is the best way to ensure you have the cash you need later in life.

Social Security can help support you in addition to your savings, but your nest egg is a lot more reliable and you have a lot more control over what happens to it.

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