Here’s the reality many of us face: you’re definitely not struggling alone. The Nationwide Retirement Institute® 2025 Social Security Survey reveals millions of Americans are wrestling with this exact same financial challenge. Most retirees lean heavily on their Social Security payments to fund their golden years. However, according to the Social Security Administration’s benefit structure, this essential program was designed to replace only about 40% of pre-retirement income for average earners.

The numbers paint a picture that hits close to home for many families. More than half of U.S. adults receiving or expecting Social Security benefits say they couldn’t financially survive missing even half of one monthly payment. When you consider that the average monthly benefits was approximately $1,907 as of late 2024 according to SSA data, we’re talking about just under $1,000 standing between financial stability and real hardship for millions of people.

That’s genuinely frightening to contemplate.

This financial vulnerability explains why more than four in five Americans worry about Social Security’s long-term future. Your anxiety about the program’s sustainability makes perfect sense. The 2024 Trustees Report indicates that without congressional action, the trust fund could face depletion by 2034, potentially resulting in reduced benefits. When such a small reduction in benefits could create genuine hardship, worrying about what lies ahead becomes natural.

The challenge you’re experiencing isn’t just abstract numbers anymore. Inflation has already started eroding retirees’ purchasing power, dramatically pushing up living costs across every category. While Social Security benefits haven’t kept pace with annual cost-of-living adjustments (COLAs), these increases often lag behind actual expense growth in essential areas like healthcare and housing.

This growing gap between income and expenses forces you and countless others to make difficult choices you never expected to face during retirement.

Picture trying to fill a bucket that has a hole in the bottom. No matter how much water you pour in, it keeps leaking out faster than you can replace it. That’s essentially what’s happening to many retirees today. Your fixed Social Security income receives modest annual adjustments while your expenses continue their relentless climb upward.

And that creates incredible frustration.

Practical Solutions for Bridging the Income Gap

Trimming Your Expenses Strategically

When Social Security benefits fall short, the most straightforward response involves reducing what you spend. This approach has become the primary strategy for many recipients, though it looks different depending on your specific circumstances.

About half of all people surveyed in the Nationwide study reported cutting back on discretionary spending. This category includes dining out, entertainment, and travel. These adjustments feel disappointing, but they don’t typically threaten your basic well-being.

Consider these practical cost-cutting measures:

• Switch to generic brands instead of name brands for household items
• Cook more meals at home rather than eating out frequently
• Take advantage of senior discounts available in your community
• Use public transportation or ride-sharing services instead of maintaining a vehicle
• Find free entertainment options like library programs, community centers, and local events

These changes require some adjustment, but they’re manageable for most people and can free up several hundred dollars monthly.

However, the situation becomes more serious when we examine essential expenses. Roughly a third of respondents admitted to reducing spending on necessities like groceries and prescription medications. This type of cost-cutting can be genuinely dangerous, and if you’re in this position, please know it’s not your fault.

While you might save money buying store-brand items instead of premium ones, skipping prescribed medications or eating inadequate nutrition can lead to serious health consequences. Those problems ultimately cost far more down the road. Your health must come first, always. If you’re struggling with prescription costs, explore Medicare’s Extra Help program or manufacturer assistance programs before reducing medications.

Downsizing Your Living Situation

Here’s where some creative thinking might actually open up new possibilities. About 18% of survey respondents chose to downsize their homes as a way to bridge their financial gap. This strategy makes particular sense when you consider how housing needs typically shift during retirement.

During your working years, you might have needed that four-bedroom house for your growing family or home office space. But retirement often brings different priorities. A cozy condo or smaller home might actually suit your lifestyle better while delivering significant financial benefits.

The immediate advantage of downsizing involves lower ongoing expenses:

• Reduced property taxes based on lower assessed value
• Lower utility bills due to smaller square footage
• Decreased maintenance and repair costs
• Reduced homeowners insurance premiums
• Less money spent on furnishing and decorating

There’s also something many people don’t discuss enough: the psychological relief. Managing a large property can be stressful and time-consuming, especially when you’re already worried about money. A smaller, more manageable space can actually improve your overall quality of life.

If you own your current home and have built up equity, downsizing offers another powerful advantage. Selling a larger, more expensive home and purchasing something smaller typically leaves you with extra cash. This windfall can be invested to generate additional income, used to purchase an immediate annuity that creates a new income stream, or simply kept in savings to cover future expenses.

Returning to the Workforce

Sometimes the best approach involves increasing your income rather than just cutting expenses. About 15% of survey respondents chose to return to work part-time. This approach directly addresses the income shortfall instead of just managing around it.

Before returning to work, understand how employment affects your Social Security benefits. According to current SSA regulations, if you’re under full retirement age and receiving benefits, you can earn up to $22,320 in 2024 without affecting your benefits. Beyond that threshold, Social Security reduces your benefits by $1 for every $2 you earn above the limit.

Once you reach full retirement age (which varies from 66 to 67 depending on your birth year), you can earn unlimited income without any reduction in Social Security benefits. This makes part-time work particularly attractive for those who have reached their full retirement age.

Of course, working during retirement isn’t everyone’s ideal scenario. You might face health limitations that make employment difficult or impossible. Plus, there’s something to be said for actually enjoying your retirement years without work stress. Your feelings about this are completely valid.

But here’s another perspective: if you’re still in your working years, consider extending your career a bit longer before retiring. Those additional months or years of employment can significantly boost your retirement savings. They create a financial cushion that protects you from future Social Security shortfalls. Additionally, delaying Social Security benefits past your full retirement age increases your monthly payments by approximately 8% per year until age 70.

The Most Powerful Strategy: Early Preparation

If you’re already retired and struggling with the gap between Social Security benefits and your expenses, your options aren’t hopeless. The strategies we’ve discussed can genuinely help your situation improve.

But if you still have time before retirement? You possess something incredibly valuable: the opportunity to build substantial wealth through consistent saving and smart investing.

Nearly 30% of the survey’s respondents were able to tap into their personal savings to make up for the shortfall between Social Security and their spending needs. This group had that valuable safety valve because they planned ahead and built financial reserves during their working years.

Building Your Retirement Foundation

The mathematics of compound growth work powerfully in your favor when you start early. Every dollar you save and invest in your twenties, thirties, and forties has decades to grow. Consider this example: if you invest $200 monthly starting at age 25 with a 7% annual return, you’ll have approximately $525,000 by age 65. Wait until age 35 to start, and that same monthly contribution grows to only about $245,000.

Here’s a practical approach to retirement savings:

• Maximize employer 401(k) matching contributions first
• Consider opening an Individual Retirement Account (IRA) for additional tax advantages
• Build an emergency fund covering 6-12 months of expenses
• Invest consistently regardless of market conditions
• Review and adjust your strategy annually

Think of retirement planning like planting a tree. The best time to plant was twenty years ago, but the second-best time is today. The sooner you begin building your retirement nest egg, the less you’ll need to worry about Social Security’s limitations when you finally stop working.

Understanding Social Security’s Role

It’s crucial to understand that Social Security was never intended to be anyone’s sole source of retirement income. According to SSA guidelines, the program aims to replace about 40% of pre-retirement earnings for average workers. This means you’ll need additional income sources to maintain your standard of living.

The Social Security Administration recommends thinking of retirement income as a three-legged stool: Social Security benefits, employer-sponsored retirement plans, and personal savings. When one leg is shorter than expected, the other two must compensate to maintain stability.

Your future self will thank you for taking action now, while you still have the power of time and compound growth working in your favor. You deserve financial security during your golden years, and with proper planning, you can achieve it. For personalized guidance on Social Security benefits and retirement planning, consult SSA.gov or speak with a qualified financial advisor who understands your specific situation.