Retirees Say Their Social Security Checks Fall Short — It’s Putting Their Finances at Risk
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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For many Americans, Social Security isn’t just a supplement — it’s the foundation of their retirement income. A new Clever Real Estate survey of current retirees found that Social Security accounts for 57% of the average retiree’s income, and for nearly 1 in 4 (22%), it’s their only source of income.
But the checks retirees rely on are often smaller than anticipated. According to the survey, 53% of retirees receive less in government benefits than they expected. That shortfall is creating financial strain for millions of older Americans who counted on Social Security to carry them through retirement.
Here’s why the gap between expectations and reality is so common — and how it puts long-term retirement stability at risk.
The Expectation Gap Is Putting Retirees at Risk
Retirees overwhelmingly depend on Social Security, yet many say the benefits they receive fall short of what they anticipated. That mismatch can be a threat to retirement security.
“This disconnect is one of the most common but foreseeable ways that retirees put themselves in financial jeopardy during their golden years,” said Nick Pisano, data writer for Clever Real Estate. “Even though most spend decades contributing portions of their paychecks to the program, it seems that relatively few take the time to understand precisely what they’ll be getting back when they stop working.”
With inflation and rising healthcare costs taking a larger share of fixed incomes, even small benefit gaps can have outsized financial consequences. Retirees who expected higher monthly payments may struggle to cover essentials, build emergency savings or maintain their planned standard of living.
The survey found that 70% of retirees have adjusted their lifestyles to accommodate their retirement incomes, and more than one-third (36%) said their standard of living has decreased in retirement.
Many Retirees Claim Early — and Reduce Benefits for Life
A major reason retirees fall short of their expected benefit amounts is the age at which they begin collecting. Although Americans can start claiming Social Security at 62, doing so permanently reduces their monthly checks. Full retirement age — currently 67 for most workers — offers the full benefit, and waiting until 70 increases payments even more.
Yet the vast majority of retirees don’t wait.
“Eighty-two percent of respondents said they quit working before the full retirement age of 67, which permanently reduced their monthly benefits, even if they were able to claim them for longer,” Pisano said.
Many retirees may not fully understand how much they give up by claiming early. The result is lower monthly income for the rest of their lives.
A Lack of Understanding Leaves Retirees Vulnerable
Social Security is a complex program, and many retirees may not fully understand how their benefits are calculated or how claiming decisions affect their long-term financial outlook.
“Without a deep and comprehensive understanding of how Social Security payments will support their retirement, relying on government benefits as heavily as many retirees do can be a recipe for serious hardship and financial stress,” Pisano said.
A lack of understanding about how earnings histories affect benefits, how spousal benefits work or how delaying impacts monthly payouts can add up to significant differences in retirement income.
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