More than 90% of seniors say they’d care if Social Security checks stopped – and many can’t go a month without them

Even if you’re not retired (or anywhere close), you’re probably aware that many older Americans today rely on Social Security to keep up with their living expenses. And without those monthly benefits, many would struggle financially.

Some government officers have suggested that Americans may not be as reliant on Social Security as some might expect. But a recent Reddit poster decided to put that myth to the test.

The poster conducted a survey in late March to get Americans’ take on Social Security. And the results were pretty eye-opening.

Retirees today are very dependent on Social Security

Millions of retirees collect Social Security. And not surprisingly, the Reddit poster above found that 90% said they’d care if their benefits did not arrive on time.

The poster also found that 40% of respondents did not have enough savings to last for a month without Social Security. That’s a scary thought, because it’s possible for a glitch in the system to delay a Social Security check by one month. Retirees shouldn’t be so reliant on their benefits that a month’s delay would drive them into debt.

Don’t count too much on Social Security

If you’re someone who’s planning to get all of your retirement income from Social Security, you may want to rethink that plan. And it’s not because the program is at risk of going broke, despite the rumors you may have heard.

Rather, it’s because Social Security will only replace about 40% of your pre-retirement paycheck if you earn an average wage. This means that if you retire on Social Security alone, you’ll be looking at about a 60% pay cut.

Now many people do find that their expenses drop in retirement. A good number of seniors manage to pay off their homes ahead of retirement and don’t have a mortgage to deal with. Others shed commuting costs by not having to report to an office.

But even so, getting by on just 40% of the paycheck you’re used to is rough. So it’s best to save for retirement so you have income on top of Social Security.

Let’s also not forget that while Social Security is not in danger of going away completely, benefit cuts are a possibility. Lawmakers should try their best to prevent them. But there are no guarantees.

How much savings should you have on top of Social Security? Well, that depends on you. And a financial advisor can help you figure that out based on your anticipated living costs as well as your goals for retirement.

But either way, one thing’s for sure. Americans are overwhelmingly reliant on Social Security in retirement. And while there’s nothing wrong with factoring those benefits into your future income, it’s important to have additional income sources at your disposal so you don’t end up too cash-strapped later in life.

That said, you don’t necessarily need a $1 million nest egg. Saving a few hundred thousand dollars for retirement may be enough, depending on your lifestyle. But it’s important to save something rather than assume you’ll be fine on Social Security alone.

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