7 retirement-planning myths to dispel
Social Security will take care of you
During their careers, some people don't save much for retirement because they expect Social Security to carry them through retirement.
"When Social Security was introduced in the 1930s, it was never meant to be the primary source of income for retirees," says Miller. "It should be viewed as a safety net, not the foundation of your retirement plan. Currently, the average monthly Social Security benefit for a retired worker is approximately $1,200. That yearly income would put a single person just over the federal poverty line if they had no other source of income."
Even current Social Security benefits may be on an unsustainable path. To deal with the issue, the government may have to raise the retirement age for eligibility, cut benefits or take another course of action. While most people believe Social Security will be around for many generations, unless action is taken to address future shortfalls, it may become a reduced source of income for retirees in the decades ahead.