Living on Social Security: A Real Challenge for Retirees

For many Americans, relying solely on Social Security benefits during retirement can be a source of continual worry. Yet, some retirees manage to make it work through a blend of strict discipline and carefully thought-out lifestyle choices.

In 2025, the experiences of two retirees will likely become quite representative. One such person is Gene Hallihan, a former federal intelligence analyst from Louisville, Kentucky. The other is Sheri Macasini, a 68-year-old from Euless, Texas.

Gene, having worked in a high-paying field until retirement, receives about $4,200 each month. After selling her condo in Northern Virginia, she moved to Louisville to be closer to her family. “It’s been a year and a week and I haven’t struggled at all,” she states. “When I hear people say, ‘I can’t live on Social Security alone,’ I think, ‘Why not?’”

Conversely, Sheri worked in the airline industry, but a series of regulatory changes in the 1980s disrupted her career trajectory. Several life events also hindered her financial growth, including a divorce in 2000 and helping to raise her grandchild in 2012.

By the time she applied for Social Security, she had to sell her mobile home in Florida, earning only $12,000 from the sale. “It’s not the best way to get by,” she admits. “But that’s the reality.”

Below, we explore how common it is for retired Americans to depend on Social Security and whether this living situation is feasible. We’ll also provide some guidance on how to determine your benefits and plan your retirement budget.

The Social Security program originated during the Great Depression to offer a safety net for older Americans, who then had to rely heavily on savings or family support if they lost their primary income.

From the start, Social Security was intended to act as a supplement to other income sources. The structure of benefits favors those with lower pre-retirement earnings, allowing for a more significant replacement of income for those who earn less.

According to the Social Security Administration, the percentage of income replaced ranges from 79% for low-income individuals to about 43% for moderate earners, and around 28% for high earners.

With traditional pensions becoming rarer and personal savings often inadequate, many find themselves relying on Social Security as their primary safety net. A study by the National Institute for Retirement Security found that 40% of retirees depend fully on these benefits to cover their costs.

When potential retirees calculate their expected benefits, which average about $1,909 monthly, many realize this amount barely covers essential expenses.

To estimate your Social Security benefits, creating a “My Social Security” account on the official SSA website is the simplest route. This feature allows you to access your official earnings history, get personalized retirement estimates, and see different scenarios for claiming benefits at ages 62, full retirement age, and 70.

Using verified earnings data, this tool offers a more accurate assessment than typical calculators. For a quick estimate, the SSA provides a “quick calculator,” but obtaining official statements is vital for serious retirement planning.

It can often feel daunting to catch up in today’s retirement landscape, where figures like $1 million or $2 million are frequently mentioned as necessary for a comfortable retirement. Some experts, like economics professor Teresa Ghilarducci, argue for a “Gray New Deal” to reboot the social contract and secure financial stability for older Americans, especially in light of rising concerns about job security due to AI.

Meanwhile, here are practical tips from those who manage to get by on Social Security alone. If you’re a few years from retirement, the first priority should be stabilizing your income. Working longer can potentially boost your benefits, and waiting to claim past your full retirement age can lead to a bigger monthly check.

However, working longer isn’t always an option for everyone. The next step is tightening your budget by cutting down on fixed costs and debts. By paying off high-interest debts, moving to a smaller, more affordable home, and building an emergency fund, you can free up your Social Security payments for essential needs and protect yourself against unexpected expenses.

If you have a retirement account, think about how to optimize it as you plan for the long term. If you expect to live into your 80s or 90s, converting a traditional IRA to a Roth IRA could be a wise decision.

A common tip among retirees who rely mainly on Social Security is to adjust their lifestyle accordingly. Retirement doesn’t always mean leisure activities like vacations or golfing; sometimes it involves creating a stable environment with family or supporting younger relatives.