44% of US seniors now live on Social Security alone, up from 39% last year. How to build the income it can’t provide Christy Bieber Sat, November 14, 2026 at 7:15 AM EST 7 min read GC=F +0.03% Photo by Zamrznuti tonovi / Shutterstock Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
When Social Security was created in America, the goal of the benefits program (1) was to help provide economic security for Americans. In many ways, it succeeded: Social Security plays a critical role in supporting Americans, lifting around 22 million people (2) above the poverty level.
But older Americans may be relying on Social Security too heavily.
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A This year's study from The Senior Citizens League (3) (TSCL) shows that many older Americans have actually come to rely too heavily on Social Security and expect too much from the program.
After all, retirement benefits weren't intended to be the only source of support older Americans have at their disposal. Instead, benefits were meant to work alongside a pension and savings to create the so-called three-legged stool (4), which collectively supports older-aged adults in their later years.
Problems can develop, however, if people reach retirement and are missing one or both of the other two "legs" of that stool, especially if they're counting on Social Security to provide more income than it was meant to.
According to the TSCL study, around 75% of adults who are retired rely on Social Security for over half of their income, while 44% are entirely dependent on their benefits to provide all of the money coming into their household.
In addition to those who get every dollar from Social Security, here's the breakdown for the other older Americans collecting benefits:
13% depend on Social Security for between 76% and 99% of their income.
18% depend on Social Security for between 51% and 75% of their income.
25% depend on Social Security for 50% or less of their income.
The data shows just a quarter of retirees get less than 50% of their income from Social Security, despite the fact that benefits are only supposed to replace around 40% of pre-retirement earnings (5) and the general recommendation that those who are retired replace around 70% to 85% of their employment income (6) after leaving the workforce.
This dependence on Social Security can create multiple problems for older Americans.
One issue is that those forced to retire early because of a lack of job opportunities, health issues or family problems often end up claiming benefits early because they need money. But claiming before retirement age can reduce the standard benefit by up to 30% (7).
The other obvious issue is that benefits simply don't provide enough money to maintain a comfortable standard of living.
The average retirement benefit (8) provides just $2,037.84 in monthly income as of October 2026 and those who claim at a younger age or have earnings below average collect even less.
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For older Americans relying entirely on Social Security, retirement might not be as comfortable as it could be. If they don't have other income, such as a pension, seniors in this situation might be forced to use their savings to fund their golden years.
But there are ways to increase your savings rate and invest wisely before retirement, as well as options to reduce your spending if you're already retired.
If you're retired and relying on Social Security, joining an organization like AARP can help you stretch your income further.
That's because AARP offers discounts on almost everything you might need, from practical purchases like dental plans, insurance and prescriptions, to fun activities like entertainment and travel.
AARP members can also access guides to help them make the most of Social Security, choose the right Medicare plan and uncover other government benefits — potentially saving you thousands.
Of course, investing wisely before retirement could be one of your best bets for a financially secure retirement and building that investing habit early can make a huge difference.
For instance, investing only $25 a week for 30 years means putting in a total of $39,000 over that time. At a hypothetical 7% annual return, this sum could grow to $126,966 (9) before fees and taxes.
A great way to do this is through exchange-traded funds (ETFs), which are investment securities that hold multiple assets, including stocks, bonds and commodities and are traded on stock exchanges like individual stocks.
The beauty of investing in ETFs is that they can represent different sectors of the market, rather than just a single stock, giving you a direct path toward diversifying your investment portfolio. Plus, they're relatively affordable, meaning that anyone, regardless of wealth, can take advantage of investing in them.
Even small amounts can grow over time with tools like Acorns, an app that automatically invests your spare change.
Signing up for Acorns takes a few minutes: All you have to do is link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio of ETFs managed by experts at leading firms like BlackRock and Vanguard.
With Acorns, you can invest in a dividend ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.
Investing in a mix of different assets can also help you grow your nest egg so that Social Security doesn't become your only income source. That includes some investments that provide diversification outside of the stock market.
For instance, institutional investors have long looked to private-market real estate as a way to help stabilize their portfolios. The asset class offers a mix of potential tax benefits, regular cash flow, a hedge against inflation and returns that are less correlated with public equities.
However, individual investors haven't historically had great options for accessing high-quality, private-market real estate. But that's changing.
Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.
Lightstone DIRECT's direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.
With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.
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Social Security Administration (1), (4), (5), (7), (8); Center on Budget and Policy Priorities (2); Seniors League (3); Morningstar (6); Acorns (9)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
