Nearly 25% of seniors rely solely on Social Security, averaging just $25,000 a year, which falls far below the 70 to 80% income replacement that retirees typically need.
Starting retirement savings at 25 requires only $350 monthly to reach $1.1 million by 65, but waiting until 40 triples that monthly requirement to $1,200.
Capture every dollar of your employer's 401(k) match and avoid overestimating Social Security, which replaces only 40% of pre-retirement income.
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Workers are often advised not to retire on Social Security alone. The reason? If you earn an average paycheck, Social Security will only replace about 40% of it.