4 Reasons I Regret Relying Solely on Social Security When I Retired
Written by
Jordan Rosenfeld
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
When it comes to claiming Social Security benefits, the general retirement planning advice is to wait as long as possible to maximize the amount you can get, but not everyone heeds that advice. It can be hard to figure out a precise retirement date, as life events, financial considerations and health issues often decide for you.
Whether you haven’t been able to pad your retirement account as much as you like or don’t think your monthly benefits will be enough in the long term, you may want to rethink your retirement timeline. Jean and Edward Lewis of Texas retired on only Social Security income and have some regrets about it. Read on to find out why.
An Unexpected Job Loss
When Edward lost his job at a car dealership in 2018 at the age of 69, though he had not been planning to retire yet, it seemed to be the most logical choice. He had already begun collecting Social Security at age 66 and was working part-time.
When Edward lost his job, Jean explained, he collected unemployment for six months and worked a couple of short-term temporary jobs but was unable to find a full-time job again due to his age. This made navigating their monthly payments all the more difficult when relying only on Social Security.
Find Out: What Is the Highest Social Security Check per Month?
Health Concerns
Jean, on the other hand, a pre-K teacher at a private preschool, retired in 2022 at age 63 — though her full retirement age isn’t until age 66 and 8 months — because of health issues.
“Initially, I planned to stick it out and work until then. At some point, my health was declining and I was so tired, I realized I couldn’t last that long,” she explained.
She was able to downgrade from full-time to part-time work in her final year of work. “But my boss and two of my coworkers decided to retire and two others were leaving. I saw it as a sign that it was time for me to go, too,” she said.
Living Paycheck to Paycheck
Jean and Edward now find themselves without any retirement savings and relying solely on Social Security and a tiny monthly retirement sum from her last job, which is less than $100 per month. This can easily lead to you charging a lot and then finding yourself in a spiral of high interest credit card debt.
Jean regrets that they never thought very far in advance when they were working. “We basically always lived paycheck to paycheck. We foolishly never sat down and thought out what our retirement would or should look like. I think we both expected to continue working as long as we could.”
The only saving grace for them was a surprise correction from Social Security. “Last year, my husband got a decent-sized additional payment from Social Security, due to an error of some sort, that included back pay. It was literally a lifesaver and has provided us a kind of cushion that has been helpful.”
Without any other significant cushion, they find themselves in a precarious place. “We’re doing OK, as long as there are no unexpected expenses. For example, my air conditioner is out in my car. It needs a new compressor, which we can’t afford right now.”
Not Researching Social Security Rules
Jean’s regrets include wishing they’d known how to prepare better many years ago, although both her husband’s layoff and her health issues were unforeseen and out of their control.
“We probably should have waited for the additional three years for my husband to collect Social Security once he was actually unemployed, from age 66 to 69. That was due to my ignorance. At the time, I didn’t know that was an option,” she said.
She also regrets not having downsized to a smaller or less expensive home in a less pricey area sooner. “And maybe to have developed some other source of income, like a side business of some kind.”
Final Take To GO: Consider All Your Retirement Options
Sometimes retirement benefits can only go so far. Now, however, Jean and her husband have been brainstorming ideas to create a side hustle to bring in extra income. “I think we can do it. Also, at some point, we’ll be selling our house and relocating and downsizing.”
Though she and her husband cannot do things over, she recommended that others who are retiring “evaluate your particular circumstances, think through all the options, and do your research regarding Social Security. Don’t just jump into retirement blindly.”
If you don’t want to figure it out on your own, speak with a financial advisor to help you navigate your retirement strategy.
Caitlyn Moorhead contributed to the reporting for this article.
More From GOBankingRates
