Can You Retire On Social Security Alone?

The average Social Security benefit in 2025 is about $1,900 per month. For many retirees, that covers little more than housing and food. It was never designed to be your only source of retirement income.

Social Security replaces roughly 40% of pre-retirement income for the average worker. Financial planners generally recommend aiming for 70% to 80% replacement. That leaves a 30% to 40% gap that needs to come from somewhere else.

If you have a pension, that helps. If you have a 401(k) or IRA, those withdrawals can fill part of the gap. But the risk is that your portfolio runs out before you do.

Annuities are one tool that can fill the gap permanently. By converting a portion of your savings into a guaranteed income stream, you create a second paycheck that lasts as long as you do. And with today's payout rates still near multi-year highs, that paycheck goes further than it will next year.

The timing of your Social Security claim also matters. Delaying from 62 to 70 increases your benefit by about 8% per year. An annuity can help bridge the gap during those years, letting you delay Social Security for a higher lifetime payout.