Social Security is the backbone of many Americans’ retirement plans. As of December 2016, more than 41 million people were receiving Social Security retirement benefits, with an average monthly payout of $1,360.
However, Social Security was never designed to replace a worker’s pre-retirement income in its entirety. Ideally, this benefit should comprise about 40 percent of the income for workers with average earnings, with the rest of the funds coming from other sources, such as 401ks. Because Social Security has a relatively meager payout, it’s important for workers to budget carefully and avoid spending their checks in frivolous ways.
Stay away from these Social Security spending mistakes so you’ll have enough money to live on in retirement.