Cashing a monthly Social Security check is common for senior citizens in the United States. Although cashing this check alone is not recommended, the reality is quite different. Millions of Americans rely on this type of payment as their sole source of income. And that’s a bad idea.
At first glance, collecting an average benefit of $1,800 per month may seem like enough, but it’s not. Looking at the long term, the money may be too little, especially if you don’t have a good household economy.
Think of your retirement as something that should be comfortable. For that reason, collecting Social Security of only $1,800 a month is not enough. While it is true that everything depends on the context, a monthly salary of $1,800 is not enough.
In this sense we must also think about the current inflation. Even if there is COLA and inflation has stopped a bit, prices are still rising. The COLA increase in Social Security checks is usually not enough.
Therefore, we are faced with a very disadvantageous situation. We cannot just receive Social Security every month as our only source of income. We must always find another source.
Saving can be the way to achieve the best possible retirement. Other slightly more tricky topics such as investing or setting up a company that provides passive income are also good options, although a bit more dangerous.
In short, what we want to say is that you should always have your back covered. Receiving a Social Security check every month is fine, but it may not be enough. Still, remember that you can maximize your benefit while you’re working, so if you don’t reach the maximum $4,555 per month at least make sure the final amount is close.