For many Americans, especially those in the middle class, the question of whether Social Security will be enough to live on during retirement is a pressing one. Unfortunately, for most retirees, Social Security benefits alone won’t cover all their needs.
In 2025, the average monthly retirement benefit from Social Security is just $1,976. This amount may seem helpful, but it often falls short of what is needed to maintain a comfortable lifestyle, especially as costs for healthcare, housing, and everyday expenses continue to rise.
Let’s break down how Social Security benefits are calculated, what retirees can expect, and what steps you can take to plan for a more secure retirement.
The Reality of the Average Social Security Check for Middle-Class Retirees
The average Social Security check in 2025 is $1,976 per month. While this can help with day-to-day expenses, it’s important to understand that this amount only replaces about 39% of pre-retirement income.
Financial experts recommend that retirees replace 70-80% of their pre-retirement income to maintain a comfortable lifestyle, making this a significant shortfall.
For example, the median household income in the U.S. is around $74,580 annually. To replace 70% of that, you would need $52,206 per year.
However, the average Social Security benefit is only $23,712 per year, leaving a gap of $28,494. This gap needs to be covered through savings, pensions, or part-time work. For many, this is a considerable challenge.
Understanding How Social Security Benefits Are Calculated
Your Social Security benefit is based on your lifetime earnings, which is measured using your Average Indexed Monthly Earnings (AIME) over your 35 highest-earning years. The Primary Insurance Amount (PIA) is then calculated using the following formula:
90% of the first $1,174 of AIME
32% of the amount over $1,174 up to $7,078
15% of the amount above $7,078
The amount you qualify for at full retirement age (between ages 66 and 67, depending on your birth year) will depend on this calculation. If you choose to retire earlier or later, your monthly benefit may be adjusted accordingly.
Real-Life Example: Meet Linda, a Middle-Class Retiree
Let’s take Linda, a retired teacher, as an example. She earned a steady income throughout her career, and her AIME is about $5,000. Based on this, she qualifies for a PIA of around $2,000 per month at full retirement age.
If Linda retires early at age 62, her benefit will be reduced to approximately $1,500 per month.
If Linda waits until age 70, her benefit will increase to about $2,480 per month due to delayed retirement credits.
This example shows how timing can significantly affect how much Social Security you receive.
Retirement Savings: Filling the Gap
While Social Security helps, it’s clear that most retirees need additional savings to fill the gap between their Social Security benefits and what they actually need. Unfortunately, many Americans haven’t saved enough for retirement:
Ages 35–44: Median retirement savings = $45,000
Ages 45–54: Median retirement savings = $115,000
Ages 55–64: Median retirement savings = $185,000
Ages 65–74: Median retirement savings = $200,000
Even with savings, many households have not accumulated enough to live comfortably in retirement, especially with rising healthcare costs.
Healthcare Costs: A Growing Expense
Healthcare costs are a major concern in retirement. A couple retiring at age 65 today can expect to spend around $315,000 on healthcare during retirement.
In 2025, the Medicare Part B premium will be $185 per month per person, in addition to any deductibles and copays. These costs can quickly add up, leaving even less room for basic living expenses.
If Social Security is your only source of income, these healthcare costs can consume a significant portion of your benefits, leaving little for other necessities.
The Future of Social Security: Should You Be Concerned?
There have been ongoing discussions about the future of the Social Security Trust Fund. According to the 2024 SSA Trustees Report, the fund will only be able to pay 80% of scheduled benefits by 2035 if no changes are made.
This means that, while Social Security is unlikely to disappear, the benefits you receive in the future may be reduced unless adjustments are made through tax increases or other reforms.
Common Misconceptions About Social Security
There are several misconceptions about Social Security that could lead to confusion in planning for retirement:
- “I’ll get back what I paid in.”
Social Security is not a personal savings account. It’s a pay-as-you-go system where your contributions fund the benefits of current retirees. - “It’s better to take benefits as early as possible.”
While it may seem tempting to claim benefits at age 62, waiting until full retirement age or even age 70 can significantly increase your monthly payment. - “I can’t work and collect benefits.”
You can work and collect Social Security benefits, but if you claim before full retirement age and exceed certain income limits, your benefits may be temporarily reduced.
Practical Steps to Take Today
Here are some practical steps you can take now to improve your retirement situation:
1. Estimate Your Benefits
Use the SSA’s Retirement Estimator to get an idea of how much you’ll receive based on different retirement ages.
2. Start Saving Early
Contribute as much as possible to a 401(k), IRA, or Roth IRA. If your employer offers a matching contribution, take full advantage of it.
3. Reduce Fixed Expenses
Consider downsizing your home, refinancing your mortgage, or relocating to a lower-cost area to make your retirement more affordable.
4. Plan for Longevity
As life expectancy increases, it’s important to plan as though you’ll live into your 90s. Build a retirement plan that accounts for long-term needs.
While Social Security provides valuable support, it’s not enough to maintain a comfortable lifestyle for most middle-class retirees. With the average Social Security check in 2025 being just $1,976 per month, it’s crucial to supplement those benefits with savings, strategic retirement planning, and a clear understanding of how your benefits work.
By starting early, reducing fixed expenses, and planning for longevity, you can ensure a more secure and comfortable retirement.
