Roughly 1 in 4 retirees have no savings, according to a recent Clever survey. There are several reasons for this, including living paycheck to paycheck and having to pay for unplanned expenses. These obstacles can be challenging to overcome, but they’re not the only reasons many retirees come up short.

There’s a popular Social Security misconception that refuses to die, and nearly 3 in 10 retirees bought into it, per the Clever survey. Here’s what you need to know to avoid falling into the same trap.

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Social Security was only ever meant to be a supplement

When Social Security was created, it was only designed to replace about 40% of pre-retirement income for workers with average earnings. Those with below-average earnings may get slightly more than 40% of their pre-retirement income, while those with high earnings will probably get less. But it was never supposed to be your sole source of retirement income.

The average retired worker gets about $1,976 per month, or about $23,712 annually. Married couples might fare a little better because they’ll have two benefit checks. Even then, the average couple only gets about $3,089 per month or $37,068 per year.

Alone, that won’t be enough to provide most retirees with a comfortable lifestyle, especially if they have a lot of out-of-pocket medical expenses or reside in an area with a high cost of living. Yet, it’s a reality that some seniors face. Roughly 10% depend on Social Security to provide at least 90% of their income.

This can put them in danger of losing their home or falling behind on other important bills if they don’t have other income sources to fall back on. But for some, it may be possible to avoid this fate, especially if they haven’t retired yet.

Other sources of retirement income to consider

Personal savings are the ideal complement to Social Security, but they’re not always easy to come by. Still, if you can save even a small amount for retirement each month, it’s worth doing. If you invest your savings, a few thousand dollars today could be worth tens of thousands by retirement.

Delaying retirement or opting for a phased retirement could also be a wise choice if you’re still able to work. It gives you access to a steady paycheck while reducing the cost of your retirement. Plus, if you only work part-time, you can still enjoy some of the freedom retirement offers.

Things are more complicated if you’ve already left the workforce and can’t return. Homeowners may be able to tap into their equity through a reverse mortgage. This gives you access to a lump sum, periodic payments, or a line of credit you can use for whatever you want. You don’t have to pay any interest on the funds while you’re alive, but the balance comes due if you leave the home for 12 or more months. You need to be at least 62 and have substantial equity in your home — generally over 50% — to pull this off.

Other government benefits, like Supplemental Security Income (SSI), could also be an option for you. This is a monthly benefit the Social Security Administration pays to the blind and disabled as well as low-income seniors. The federal maximum for 2025 is $967 per month for an individual or $1,450 per month for a married couple. Some states supplement these benefits as well.

If you haven’t explored some of these avenues, you may want to now. And if some of these aren’t options for you at the moment, keep them in mind for the future in case your situation changes.

The $22,924 Social Security bonus most retirees completely overlook

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