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While retirement is a time to enjoy the fruits of your labor, troubling new data from The Senior Citizens League (1) (TSCL) reveals that many older Americans aren’t exactly living a life of leisure. In fact, many individuals and households aged 65 and over are struggling to get by financially.
So, how much income do U.S. retirees have to live on? According to the TSCL survey, here’s the breakdown for how much they live on per month in 2026:
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10% live on less than $1,000.
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44% live on $1,001 to $2,000.
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23% live on $2,001 to $3,000.
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12% live on $3,001 to $4,000.
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4% live on $4,001 to $5,000.
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7% live on $5,001 or more.
As TSCL warns, these income levels put millions of older Americans either below the $15,650 poverty level (2) for a single-person household or just above it.
To put it in perspective, the amount that the lowest earners collect often makes it difficult or impossible to afford rent, especially in expensive areas where the cost of living may be very high.
The limited income that older Americans already receive also shows how important Social Security benefits are to the well-being of retirees.
Around 24.6 million (3) retirement-age Americans depend on Social Security for all the income they have coming into their household, according to TSCL, while 41.8 million get at least half of their income from Social Security, if not more.
This could become a significantly bigger problem in the future, considering that the most recent report (4) from the Social Security Board of Trustees estimated that the Old-Age and Survivors Insurance Trust Fund, which finances benefits, could run dry as soon as 2032. This could leave beneficiaries across the board with only 78% of promised benefits unless lawmakers take action.
Even with the status quo, retirees struggle to get by. However, with more than half of older Americans over the age of 65 living on less than $2,000 per month, a 22% cut to monthly Social Security benefits might be devastating.
This is why it’s so important for current workers to remember that Social Security isn’t your sole source of support.
While the “rule of thumb” is that you typically need to replace about 80% or more (5) of your pre-retirement income to have a comfortable retirement, Social Security benefits replace only about 40% (6) on average.
This means that workers counting on those benefits to be their sole source of support, or even a primary one, could end up disappointed. But there are many ways you can try to supplement Social Security with additional income during your retirement.
Here are a few options.
Make investing easy
Investing can be one of the best ways to supplement your Social Security income, so it might pay to invest as much as possible throughout your working life. The long-term returns could be considerable if you stick with it.
For instance, investing just $25 a week for 30 years means putting in a total of $39,000 over that time. At a hypothetical 10% annual return, this sum could grow to $224,159 (7) before fees and taxes.
If you find it difficult to invest consistently, you can start by building savings habits into everyday spending.
With platforms like Acorns, you can automatically invest spare change from your everyday purchases, so you don’t have to do it yourself.
Here’s how it works: Simply sign up and link your debit or credit cards and Acorns will round up each purchase to the nearest dollar, investing the difference into a diversified portfolio managed by experts at leading investment firms like Vanguard and BlackRock.
That morning coffee for $3.25? It’s now a 75-cent investment in your future. Then, once you’re comfortable with Acorns rounding up your purchases, you can supercharge your savings with recurring monthly deposits into your favorite funds.
What’s more, if you sign up today with a $5 recurring deposit, Acorns will add a $20 bonus to help you begin your investment journey.
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Take advantage of discounts
If you’re struggling to live on Social Security as a retiree, every dollar counts. Rising healthcare costs, uncertain markets and fixed incomes can make it harder to stretch your savings — especially if you’re trying to plan for decades ahead.
That’s why it could pay to join AARP, one of the country’s most trusted organizations dedicated to older Americans.
AARP membership brings many perks, including discounts on almost everything you buy, from prescriptions and dental plans to travel, entertainment and insurance.
But AARP does more to help your finances than just provide discounts. It offers informative guides that enable you to make smarter health and financial decisions, choose the right Medicare plan, make the most of Social Security and learn about other government benefits you may be eligible for.
Sign up with AARP today and get 25% off your first year.
Get the investing help you need
Getting professional help to manage your investments can also pay off, potentially through higher returns and a more cohesive plan for your golden years. Help is out there, whether it’s in person or online.
For instance, if you prefer a hands-off, tech-forward approach to building wealth, Vanguard’s Digital Advisor puts the investing expertise of one of the world’s largest asset managers right at your fingertips.
It takes the guesswork out of investing by building a personalized portfolio for you using Vanguard’s well-known low-cost ETFs and mutual funds — then keeps things running smoothly with automatic rebalancing.
The platform also offers guidance on saving for retirement and lets you set additional goals as your life evolves. Plus, it can help you think through debt repayment strategies, potentially freeing up more cash to invest toward your long-term plans.
With a minimum investment of just $100, it’s an easy way to get started with professionally guided investing.
For every $10,000 in an all-index portfolio, you’ll pay approximately $15 to $16 per year.*
You can even test-drive the Vanguard experience with no advisory fees for the first 90 days.
*All investing is subject to risk, including the possible loss of the money you invest.
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Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
Seniors League (1), (3); Administration for Children and Families (2); Social Security Administration (4), (6); AARP (5); Acorns (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
