Numbers Don’t Lie – Why Seniors Can’t Live on Social Security Alone

When Social Security was created, it was only supposed to replace about 40 percent of past earnings. That is no longer the case. According to an article by News Nation, 40 percent of retirees today receive at least half of their income from Social Security, and “about 12 percent of men and 15 percent of women rely on Social Security to meet 90 percent of their needs.” 

That’s the root of the problem. The average monthly Social Security retirement benefit is $1,907 equating to about $22,884 each year. That’s not nearly enough! The article noted that housing was retirees’ biggest expense, eating up almost $1,700 per month or $20,362 a year. Other big expenses included transportation ($8,172 per year), medical expenses ($7,540 per year), and food ($7,306 each year). In total, these expenses cost retirees about $43,380 — that’s $20,496 more than the average annual Social Security benefit total.

It’s clear that seniors need bigger benefits. The Seniors Trust is committed to improving the financial well-being of America’s retirees through the passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA) to better keep up with rising costs associated with inflation, and increased minimum benefits. This legislation will also ensure the long-term solvency of the Social Security program.