5) Assuming You Can Live on Social Security Only
Many people plan to live on Social Security when they hit retirement. While this is enough money for some people to live on, for others it won’t be enough.
According to The Motley Fool, the average Social Security retirement benefit is $16,000 a year, or about $1,360 a month. The maximum benefit that retirees receive at their retirement age is $2,639 a month, or $32,000 annually. If you don’t think that this will be enough money for you to live on comfortably, start planning other ways to generate income during your retirement. You could get more income by working a small part-time job, or by investing in dividend-paying stocks. If you are still thinking of using Social Security as your sole income, try creating a mock-budget before you retire. This will show you if Social Security will be enough for you.