Will You Beat the Average $1,657 Social Security Benefit? | Personal Finance

In other words, beating the average Social Security benefit is a lifelong endeavor that will only pay off if you’re able to earn big bucks for a long time. and Avoid inadvertently running down your checks by claiming early.

You still can’t live on just above-average benefits

Even if you beat the average Social Security benefit, it’s important to remember that you won’t be able to live on Social Security income alone.

To beat the average, you need to have a higher income for many years, so you’ll be used to a higher standard of living, and you probably won’t want to take a huge pay cut after leaving the workforce. And unfortunately, that’s exactly what would happen if you had no extra savings, because Social Security benefits are meant to replace about 40% of pre-retirement earnings.

To ensure you have enough money, it is best to invest regularly and build a diversified portfolio. Investing in index funds is one of the easiest ways to do this. An index fund that tracks a financial index, such as the S&P500, will provide easy diversification with low fees since your investment does not need to be actively managed, as it only mimics the composition of the index.

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