Social Security won’t replace income after retirement
When you plan for retirement, it’s important to remember that Social Security is only meant to cover about 40% of pre-retirement income.
The maximum benefit is $3,345 a month for someone who files for Social Security in 2022 at full retirement age (FRA).
FRA is the age at which you qualify for 100% of the benefit calculated from your earnings history.
This is $40,140 annually. However, the average rent in the United States is about $1,100 to $1,200.
This leaves a retiree with $25,740 annually, which is just above the poverty line.