What Are the Problems With Relying Solely on Social Security Checks?

What Are the Problems With Relying Solely on Social Security Checks? Cashing a monthly Social Security check is common for senior citizens in the United States. Although cashing this check alone is not recommended, the reality is quite different. Millions of Americans rely on this type of payment as their sole source of income. And that’s a bad idea.

What Are the Problems With Relying Solely on Social Security Checks?

At first, glance, collecting an average benefit of $1,800 per month may seem like enough, but it’s not. Looking at the long term, the money may be too little, especially if you don’t have a good household economy.

Striving for a Comfortable Retirement

Think of your retirement as something that should be comfortable. Therefore, collecting Social Security for only $1,800 a month is not enough. While it is true that everything depends on the context, a monthly salary of $1,800 is not enough.

The Impact of Inflation

In this sense, we must also think about the current inflation. Even if there is COLA and inflation has slowed down, prices are still rising. The COLA increase in Social Security checks is usually not enough.

The Need for Additional Income Sources

Therefore, we are faced with a very disadvantageous situation. We cannot rely solely on receiving Social Security every month as our only source of income. We must always find another source.

Exploring Financial Strategies

Saving can be the way to achieve the best possible retirement. Other slightly more tricky topics such as investing or setting up a company that provides passive income are also good options, although they may carry some risk.

Covering Your Bases

In short, we want to say that you should always have your back covered. Receiving a Social Security check every month is fine, but it may not be enough. Still, remember that you can maximize your benefit while you’re working, so if you don’t reach the maximum $4,555 per month, at least make sure the final amount is close.