Should I count on Social Security?

Concerns over the size of the U.S. debt and budget deficit, along with growing numbers of baby boomers retiring, are causing many people to ask whether Social Security will still be around when they need it. While there may be changes made to ensure its long-term viability – like potential changes to the benefit age or the payroll tax – we believe Social Security will likely remain an important part of a retirement income strategy. With that said, focus on what you can control when it comes to your future income.
Social Security isn't the silver bullet for retirement – the Social Security Administration estimates it will provide only about 40% of pre-retirement income on average for those retiring now.
This means you'll be responsible for much of your retirement income, and your investments will play a major role.
As an example, here's what the average 65-year-old American's retirement income looks like today:
This chart details the income sources for an average 65-year-old American at retirement. The majority is from Social Security at 33%, the second-biggest source is work/earnings at 32%, the third-largest source is from a pension and/or annuities at 21%; the fourth source is 10% from investments and the final source is other at 4%. Source is SSA Income for the Aged Chartbook. Income as of 2014. Edward Jones estimates are based on CANNEX Immediate Annuity Quote System from November 2, 2020. This example assumes a joint life annuity, a 66-year-old person, 3% inflation rate and the 2020 average benefit level from the Social Security Administration.
There are some key aspects of your retirement strategy that are in your control, and it's important to focus your energies on them to maximize their potential.
Talk to your Edward Jones financial advisor about steps you can take now to control what your income looks like in the future.