Social Security is Designed to Replace This Much of Your Income (And It's Not Even Close to 100%)

Social Security is, for millions of Americans, a vital source of income during retirement. According to the Center on Budget and Policy Priorities (CBPP), the mere fact that Social Security benefits are paid out to more than 41 million retired seniors each month has pushed the rate of senior poverty below 9%. Without Social Security income, the CBPP estimates that the poverty rate for seniors would be north of 40%! However, most working Americans, and even some retirees, don’t have a good idea of what percentage of income Social Security is designed to replace once you retire, and that’s a big problem.