30% of Seniors Doubt Social Security Will Cover Retirement: The Financial Struggles Revealed

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According to Businessinsider, Emma Echols, now 68, has been working since she was 12, taking on roles as a babysitter, chef, and convenience store manager. However, instead of preparing for retirement, she faces the reality of working indefinitely. Living in Alabama, she never earned much and has always lived frugally. Yet, her rent and transportation costs alone are $1,000 a month. With a Social Security check of $1,056 per month—25% less than if she had waited until the full retirement age of 67—Echols continues working part-time as a bus driver for $26 an hour to make ends meet.

“I don’t see myself being able to retire, but I’m grateful and healthy,” she says. Sadly, Echols is not alone in her predicament. A recent NerdWallet study of 2,100 adults found that only 30% believe Social Security alone will allow them to live comfortably in retirement.

Over the past few months, Business Insider has spoken with over 40 baby boomers and some Gen Xers who share similar concerns. Many are struggling in retirement or fear they’ll never be able to retire due to debt, low-paying jobs, and unexpected life events that have hindered their ability to save. While many express gratitude for Social Security, it’s clear that the benefits are insufficient to cover the rising costs of living.

Social Security, initially designed as a safety net for American retirees, now finds itself under political scrutiny. Without intervention from Congress, full benefits are expected to run out in 11 years. This uncertainty only adds to the anxiety of those relying on Social Security as their primary source of income.

The average Social Security check in 2024 is $1,907 per month—an income of just under $23,000 a year. For many, this isn’t enough to cover basic living expenses. Though Social Security was never meant to guarantee luxury, baby boomers who expected it to provide a secure retirement are finding themselves still working into their 70s and 80s. Some are even considering drastic measures like moving to lower-cost countries or in with their children.

The situation is further complicated by the US’ shift from pensions to 401(k) plans in the 1980s, leaving many without the guaranteed retirement payouts they once expected. Now, nearly 80% of retirees rely on Social Security, with the Social Security Administration estimating that 97% of older adults will eventually receive benefits.

Even with these benefits, many retirees find themselves struggling. The official poverty line, based on an outdated formula from the 1960s, leaves many without the help they need. Retired teachers, rideshare drivers, and food service workers often live in poverty or near-poverty conditions, unable to afford basic necessities like housing, food, and medical care.

For some, like Becky Davenport, 61, who works at a nonprofit outside Anchorage, even expected Social Security payments of $2,000 a month may not be enough to cover her living expenses in a high-cost area. She worries about needing to move in with her sons or find a roommate to make ends meet.

As the 2024 presidential election approaches, Social Security is once again a hot topic. While proposals to raise benefits by $2,400 a year have been suggested by Democrats like Bernie Sanders and Elizabeth Warren, funding remains a critical issue. The need for a more robust Social Security system is clear, but the path forward remains uncertain.

As retirement becomes increasingly out of reach for many, Social Security’s role as a lifeline for older Americans is more vital than ever. Yet, as Echols and others like her know all too well, it’s not enough to ensure a comfortable, worry-free retirement. For many, the dream of a secure retirement has become a distant memory, replaced by the harsh reality of working until they drop.

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