Last year, most Americans believed you needed $1.26 million to retire comfortably, according to Northwestern Mutual. But can you retire with less? And what if you have only your Social Security benefits? For many retirees, Social Security accounts for the bulk, or even the entirety, of their retirement income. According to experts, here’s what a realistic budget would look like for retirees who depend solely on Social Security. Can You Retire on Social Security Alone in 2026? “Retiring exclusively on S ...

Core Insights - The article explores the financial realities of retirees living primarily on Social Security, highlighting varying experiences and the challenges faced by different individuals [1][49]. Group 1: Financial Management in Retirement - Many retirees significantly reduce their spending after retirement, with a federal report indicating that about 85% of Americans aged 65 to 74 feel they are managing financially well [2][3]. - Common belief suggests that a retirement savings of at least $1 million is necessary for a comfortable retirement, but many retirees manage with much less, often relying heavily on Social Security [4][5]. - Social Security benefits typically cover about 40% of pre-retirement earnings, and there are concerns about potential shortfalls in the program by 2035 [5]. Group 2: Individual Experiences - Gail Randle and her partner live on approximately $2,400 a month from Social Security, demonstrating that frugality and budgeting can lead to a satisfactory retirement life [5][8][10]. - In contrast, Alden and Dena Swartz, who receive nearly $4,000 a month, struggle financially due to high living costs and unexpected life changes, illustrating the precariousness of relying solely on Social Security [6][15]. - The Leedy couple, with a combined Social Security income of $4,500, successfully navigated retirement despite not having retirement savings, showcasing that careful financial planning can lead to a comfortable life [19][22]. Group 3: Challenges Faced by Retirees - Sheri Makasini's experience highlights the difficulties many face when Social Security alone is insufficient to cover living expenses, leading her to rely on her daughter's support [24][29]. - Patricia Douglas manages to survive on a limited Social Security income of about $1,100, utilizing food stamps and volunteer work to make ends meet, reflecting the struggles of those with lower benefits [30][32]. - Ken and Kathy Larson's story illustrates the importance of downsizing and adjusting lifestyle expectations in retirement, as they successfully transitioned to living on $5,400 a month from Social Security and other sources [35][40]. Group 4: Positive Outcomes - Jean Hullihan, who retired with a Social Security benefit of $4,200, found that her expenses decreased significantly in retirement, allowing her to live comfortably without financial strain [42][46]. - The article emphasizes that with careful budgeting and lifestyle adjustments, many retirees can thrive on Social Security, countering the narrative that it is impossible to live solely on these benefits [44][48].