Reality Check: What Social Security Will and Won’t Pay For

Although most people can apply for Social Security as early as 62, the full Social Security retirement age is 65 to 67, depending on when you were born — and benefits are reduced for those who take it early. Most seniors depend on the Social Security system for much of their income, and with the average monthly check totaling less than $1,300, that’s an annual income of under $15,600. For many seniors, that means making tough choices based on what their Social Security benefits will and will not cover.

Click through to discover the true costs of retiring on Social Security.

Average monthly cost for Americans: $758

Average Social Security check: $1,290.46

The largest monthly expense for most people is housing, and according to USA Today, housing costs that exceed 30 percent of your income are a sign of financial distress. The average mortgage payment gobbles up nearly 60 percent of the average Social Security check. If you’re anywhere near that ratio, consider taking on a roommate, refinancing your mortgage, moving to a more affordable part of town or downsizing.

If you can’t do any of that, find out how to maximize your Social Security income.

Median monthly cost for Americans: $949

Average Social Security check: $1,290.46

The 30-percent rule applies to renters too, but on average they have even higher monthly housing costs than homeowners. If your rent is too high, consider the same strategies that apply to homeowners — but also consider renegotiating your rent. Reliable, stable tenants who pay on time have leverage over landlords, who are often eager to avoid the risk and expense of rolling the dice on new tenants, according to the site Realtor.

Average monthly cost for Americans: $509

Average Social Security check: $1,290.46

The average new car payment rose to $509 in 2017 — and the cost of the average new car was $35,368. That’s a huge chunk of a Social Security check. Since modern cars last much longer than those built in previous generations, Fortune recommends most people — even those not living on a fixed income — consider buying used and shunning feature-rich luxury vehicles for entry-level models.

Average monthly cost for Americans: $75

Average Social Security check: $1,290.46

The average car insurance bill is about $900 a year. Yes, Social Security can cover it, but when it comes to bills, less is always better. Drivers need to factor in insurance costs before they buy or lease a car, consider higher deductibles and reduce coverage on older cars, the Insurance Information Institute recommends. Also, ask about low-mileage discounts if you don’t drive a lot, remember that good credit usually helps, and always shop around.

Average monthly cost for Americans: $29.25

Average Social Security check: $1,290.46

If you drive 1,000 miles a month in a car that gets 23 mpg, you’ll spend $117 per month with gas costing $2.70 a gallon. Assuming a retiree drives one-quarter that amount, that’s $29.25 per month. Prioritize higher gas mileage when buying your next car, use apps like GasBuddy to find the best gas prices and use apps like Waze Carpool to share expenses with other drivers.

Average monthly cost for Americans: $99.19

Average Social Security check: $1,290.46

If you live in a big city, chances are you don’t even have a car and instead rely on public transportation. Those who take buses, trains and subways in the country’s 19 biggest cities spend an average of $99 per month, which leaves far more of your Social Security check intact compared with owning, fueling and maintaining a car.

Also, consider if living in a big city is the best option when living on Social Security.

Average monthly cost for Americans: $15 to $45

Average Social Security check: $1,290.46

If you’re still clinging to a landline, the average bill for unlimited local is $15 to $30 a month. When you include long-distance coverage, it jumps to $30 to $45. Landline rates continue to rise, and in 2015, CNBC revealed that bundling services often doesn’t lead to savings. Consider dropping the service, pocketing the cash and joining the huge swaths of the population who have abandoned landlines altogether.

Average monthly cost for Americans: Unknown

Average Social Security check: $1,290.46

Four companies account for 80 percent of all cell service and, according to Consumer Reports, their pricing schemes are an intentionally confusing, constantly shifting “shell game” that most users don’t fully understand. It’s up to you to monitor data usage and consistently check for promotions; don’t expect your carrier to inform you of potential savings. Also, if you threaten to switch, your carrier might offer a “retention deal.”

Average monthly cost for Americans: $50

Average Social Security check: $1,290.46

Americans spend 29 percent of their annual energy bill on heating, according to the U.S. Department of Energy. Visit Energy.gov’s Energy Saver for tips and strategies on increasing efficiency and lowering bills, and if you need help paying for heat, visit the National Council on Aging or Benefits.gov.

Average monthly cost for Americans: $22.32

Average Social Security check: $1,290.46

The U.S. Department of Energy estimates that 13 percent of the average annual energy bill goes to home cooling and air conditioning. For seniors, staying cool in the summer is as important as staying warm in the winter. Strategically placed ceiling fans and open windows will likely suffice on all but the hottest days, and regularly maintaining air conditioners will reap long-term dividends with more efficient operation and fewer repairs.

Average monthly cost for Americans: $103

Average Social Security check: $1,290.46

With the average cable bill now topping $100 a month, remember that your cable provider is as eager as your cellphone provider to keep you on the subscriber rolls. Call, haggle, ask for promotions that are supposed to be for new customers only and threaten to cancel service. If their offers aren’t good enough, consider following through on the threat and joining the millions of “cord cutters” who have abandoned cable for streaming media services.

Average monthly cost for Americans: $10.99

Average Social Security check: $1,290.46

Streaming services like Netflix offer an ocean of options for movies, shows and other programming — all with a fraction of the bite that traditional cable takes out of your Social Security check. Want to save even more? Forgo high definition with a switch to a basic plan, and you’ll whittle your Netflix bill to $7.99 a month.

Average monthly cost for Americans: $60

Average Social Security check: $1,290.46

You can probably lower your internet bill by buying your own modem and router instead of renting them from your service provider, according to USA Today. Also, don’t automatically opt for the fastest speed. Many people don’t even have the equipment required to notice the difference between speeds a tier or two down.

Average monthly cost for Americans: $250 to $279

Average Social Security check: $1,290.46

The U.S. Department of Agriculture estimates the average monthly grocery tab for people ages 51 to 70 on a modest budget is about $250 for women and $279 for men. The three surest ways to slash your bill by as much as half are to simply shop less frequently, shop only the deals and preplan your meals to reduce waste, according to USA Today.

Average monthly cost for Americans: $250

Average Social Security check: $1,290.46

Americans spend as much on eating out as they do buying groceries each month. Not only might dining out frequently be as bad for your waistline as it is for your wallet, you’ll almost always save money by making meals at home. When you do dine out, first visit a site like RetailMeNot for coupons and discounts.

Average monthly cost for Americans: $189

Average Social Security check: $1,290.46

The average American carries $4,717 in credit card debt with interest at 15 percent, according to Time’s Money. If you made the minimum payment of $189 a month, you’d need a decade to pay in full and you’d spend more than $18,000 in interest. Instead, only charge what you can afford to pay off in full every month — or at the very least, pay more than the minimum payment whenever possible.

Average monthly cost for Americans: $60

Average Social Security check: $1,290.46

Gym memberships are pricey, and according to USA Today, the vast majority of them go largely unused. Visit a website like Men’s Fitness or Women’s Health for free tutorials or check out effective app workouts that nearly anyone can do.

Average monthly cost for Americans: $142

Average Social Security check: $1,290.46

The average cost of lawn care is far more than someone who depends on Social Security can afford, according to HomeAdvisor. Save money — and water — by reducing your lawn size. Try laying down cheap mulch or replacing some or all of your lawn with hardy local plants.

Average monthly cost for Americans: $134

Average Social Security check: $1,290.46

Basic Medicare includes parts A and B. Most Americans don’t pay for Part A, and the standard rate for Part B is $134 a month. To get the most credits, avoid penalties and pay the lowest amount possible, sign up for Medicare as soon as you’re eligible.

Average monthly cost for Americans: $32

Average Social Security check: $1,290.46

Pricey housekeeping products can chip away at a Social Security check every month. According to HGTV, cheap items that you probably already have make affordable substitutes. White vinegar, baking soda, rubbing alcohol and ammonia can make light work of a huge list of common household cleaning chores.