But, whether you’re rich or poor, the fact is that surviving — much less thriving — on just 40% of pre-retirement earnings simply isn’t possible. In fact, while most experts suggest you’ll need to replace at least 80% of what you were earning before leaving your job, a substantial number of retirees end up spending the same or more after they are no longer in the workforce. While these expenses may change — you may spend more on healthcare services, for example — you can’t count on being able to get by on less.
How to supplement your Social Security
Since you can’t live on Social Security alone, the big question is, what are you supposed to do?
To get an idea, look at the history behind Social Security. When it was created, it was meant to be part of a “three-legged stool” that supports retirees. The other two legs are a pension and savings. So, you’ll need one or both of these to add to your retirement income in order to have enough.
Now, if you want a pension offered by an employer that provides guaranteed retirement income, you’ll have to look hard for a job that offers one because many don’t. Government or public service work is likely your best option to get a pension. But, if you don’t want to limit your employment prospects, you’re going to have to strengthen the other two legs of your stool so they are sufficient to support you.
