5 Costly Mistakes People Make with Their Social Security Checks – Don’t Go Broke

Approximately 72 million Americans receive Social Security benefits, making it one of the nation’s main pillars. About half of people 65 and older get at least 50% of their household income from Social Security benefits, and 25% of older people say that Social Security accounts for 90% or more of their monthly income. This is concerning.

The fact that man cannot support himself on his benefits alone is even more worrisome because the program has a large number of dependents. As people age, they incur several expenses that call for a healthy nest egg, which is simply absent.

According to Steven Bosworth, the managing director of Bosworth Financial Group and a financial counselor, if seniors rely primarily on Social Security, they will no longer be able to afford many items in retirement.

These are a few of the most typical.

Social Security medical care costs

One of the most costly expenses for the elderly is also maybe the most significant. America is the most expensive nation in the world, with each person spending about $12,000 annually on health-related costs.

However, Bosworth notes that “medical expenses can skyrocket and if retirees can’t afford medical care, they won’t get the proper treatment that they deserve.” This is the average, and people with substantial and persistent medical conditions pay much more.

Vacation

Bosworth emphasizes that “these retirees will need their Social Security for their living expenses,” meaning that those receiving Social Security cannot afford to take vacations.

Car Maintenance

“Maintaining a vehicle can be expensive as the cost of repairs usually requires you to pay hundreds of dollars or more at one time,” according to Bosworth, who also classifies this as unaffordable.

Homeowners and Car Insurance Insurance

For those on fixed incomes whose incomes do not keep up with the demands of private insurance firms, it is extremely unaffordable due to its high cost, which keeps rising annually.

In the United States, homeowners insurance can cost up to $2,600 year for a $300,000 home. The cost varies according on location, coverage, and the age and condition of the covered property.