Think You'll Live on Social Security Alone? Here's the Reality Most Pre-Retirees Aren't Prepared For.

By Maurie Backman – Mar 21, 2026 at 3:18AM ESTKey PointsSome people assume they'll be able to cover all of their costs with Social Security.Social Security benefits may be cut in the future, but that's not the only issue with that plan.Understand the role Social Security should play in your retirement income picture.If you're nearing retirement, you may be getting increasingly excited about wrapping up your career and getting to enjoy a more flexible, relaxed schedule. But before you make your retirement official, it's important to ensure that you're prepared financially. Part of that means estimating your monthly spending to see what your bills might come to. It also means making sure you have enough income coming your way to cover your costs. But if you're expecting to get all of your retirement income from Social Security, you may need to rethink your plan -- and perhaps delay retirement until you sort things out. Image source: Getty Images. Don't assume you can live on Social Security alone Planning to live on Social Security alone is a bad idea for two reasons. First, the program is at risk of benefit cuts within the next decade if lawmakers don't take steps to address Social Security's pending financial shortfall. But even if benefits aren't cut, you should know that if you earn an average income, your Social Security checks will probably only replace about 40% of your preretirement paycheck. Now it's common to need less money in retirement than when you're working due to a variety of factors -- not having to commute, having the flexibility to relocate to a less costly area, and not having to fund an IRA or 401(k). But still, retiring on Social Security alone could mean taking a 60% pay cut. And that's a reduction in income you may not be able to afford. Remember, while some of your expenses may go down in retirement, others could increase. You may find that healthcare costs more, since medical issues can arise with age. Plus, it's important to keep busy in retirement. And while there's plenty of free entertainment you can pursue, your leisure budget might also understandably increase. Don't set yourself up for a disastrous situation If you retire on just Social Security, you may find that you're not able to maintain a lifestyle you're happy with. It's better to recognize that and consider delaying retirement a bit to boost your savings. That doesn't necessarily mean you have to keep your current job or routine, though. If you were planning to retire next year and realize you don't have enough money, see if you can work part-time for your current employer or move into a consultant arrangement. That could serve as a nice transition, allowing you to build more savings without the strain of a full-time job. Social Security is a safety net for retirees, but those benefits aren't meant to sustain you without backup. Recognizing that ahead of retirement could prevent you from making a huge mistake.Read NextMar 21, 2026 •By Dana George1 Social Security Mistake That Could Cost You Thousands in RetirementMar 20, 2026 •By Christy BieberAI Will Now Determine if Medicare Covers This CareMar 20, 2026 •By Maurie BackmanWhat Every High-Income Retiree Needs to Know About Medicare Before EnrollingMar 20, 2026 •By Kailey Hagen, CFPYou Don't Have to Take Required Minimum Distributions (RMDs) From These Accounts in 2026Mar 20, 2026 •By Kailey Hagen, CFPIs There a Right Time to Take Your Required Minimum Distributions (RMDs)?Mar 20, 2026 •By Maurie BackmanShould You Pause Roth Contributions in a High-Income Year?About the AuthorMaurie Backman is a contributing Motley Fool retirement and Social Security expert with more than a decade of experience writing about personal finance, investing, and retirement planning. Maurie previously worked in finance analyzing distressed companies. She studied finance at Binghamton University.TMFBookNerd