Boston College’s Center for Retirement Research data show Social Security makes up 83% of income in the lowest-earning U.S. households aged 65 and older, versus 12% in the highest-earning group. The article urges workers to build retirement savings beyond benefits.
Across Americans aged 65 and older, the research center puts Social Security at about 30% of income; it accounts for 64% in the second-lowest-earning group. The article recommends building a cash reserve and additional retirement savings, including diversified investments, to reduce dependence on benefits.
The article cites an estimate that Social Security’s trust fund could be depleted as early as 2032; without congressional action, it says an automatic 22% benefit cut would follow. It also notes that cost-of-living adjustments use CPI-W, which may understate retirees’ inflation, and cites a Senior Citizens League analysis estimating retirees have lost about 20% of their purchasing power since 2010.
