Is Social Security Enough for Early Retirees? Here’s What You Need to Know

Retirement sounds great, right? But when it’s time to actually leave the workforce, it’s easy to wonder if Social Security will be enough to cover your expenses. If you’re in your 50s or 60s and thinking about retiring early, the question becomes even more important: Is Social Security enough to support you for the long haul?

Spoiler alert: For most people, the answer is no. But don’t panic just yet — there are ways to make sure you’re financially secure in retirement. Let’s break down what you need to know.

How Much Does Social Security Really Cover?

First off, Social Security isn’t designed to be your sole source of income in retirement. In fact, it’s estimated that Social Security will replace about 40% of your pre-retirement income. That may sound like a lot, but if you were used to earning a comfortable paycheck, 40% probably won’t cut it. The average monthly benefit for a retiree in 2025 is about $1,800 — which is definitely helpful, but likely not enough to live on comfortably without additional savings or income.

For many younger retirees, Social Security is a good starting point, but it’s not going to keep the lights on all by itself.

What to Consider About Your Social Security Benefits

1. Taking Benefits Early Can Lower Your Payments

   • Sure, you can start collecting Social Security at age 62, but here’s the catch: Your monthly benefit will be lower than if you wait until your full retirement age (which is 66 or 67, depending on when you were born). If you’re hoping to retire early, you’ll need to weigh the pros and cons of starting Social Security early — because that can mean a smaller paycheck each month.

2. How Long Do You Plan to Live?

   • If you’re retiring early, there’s a good chance you’ll be relying on Social Security (and other savings) for a long time. Let’s say you retire at 62, and live until you’re 90. That’s a long stretch where you’ll be living off the funds you’ve got. While no one can predict the future, it’s smart to plan for the possibility that you could be in retirement for 30 years or more.

3. What Happens if Social Security Runs Into Trouble?

   • It’s no secret that Social Security has been facing funding challenges. According to recent reports, the trust fund is expected to run out by 2034. That doesn’t mean the program will disappear, but it does mean that benefits could be reduced if Congress doesn’t act. As a younger retiree, this is something you need to keep in mind when planning your future.

How to Make Sure You’re Financially Secure in Retirement

So, if Social Security alone isn’t enough, what can you do to make sure your retirement is comfortable? Here are a few steps to help fill the gap:

1. Save, Save, Save!

• Contributing to a 401(k) or an IRA is one of the best ways to build up your retirement savings. If you have a 401(k) at work and your employer offers a match, be sure to take full advantage of it — that’s free money! Additionally, consider putting money into a Roth IRA if you’re eligible. These types of accounts give you tax breaks that help your savings grow over time.

2. Think About Other Income Sources

• If you’re planning to retire early, you might consider other sources of income to help out. This could mean part-time work, freelancing, or even starting a side business. Having an extra stream of income can help bridge the gap while you wait for your investments to grow.

3. Downsize or Move Somewhere Cheaper

• Another option is to downsize your living situation. Maybe it’s time to move into a smaller home or consider relocating to an area with a lower cost of living. This can significantly reduce your monthly expenses and help make your Social Security payments go further.

4. Investing Is Key

• If you’re not already investing in stocks, bonds, or other assets, now is the time to start. Investments have the potential to grow your wealth and provide you with income during retirement. The earlier you start investing, the more time your money has to grow.

5. Delay Taking Social Security if You Can

• If possible, consider delaying taking Social Security until you reach your full retirement age or even later. The longer you wait to take your benefits, the more you’ll receive each month. If you can afford to hold off, you’ll set yourself up for a better financial future.

Is Social Security Enough for You?

For most younger retirees, Social Security alone isn’t going to cut it. But that doesn’t mean you’re stuck. With the right planning — including saving, investing, and maybe adjusting your living situation — you can ensure that you have the financial resources you need to enjoy a comfortable retirement.

The key is starting early. The earlier you start saving and planning, the better off you’ll be when it’s time to step away from the workforce.