Can You Afford to Retire on the Meager Average Social Security Payment in 2025?

Originally published 1/13/2019. Updated 2/7/2025

The Average Social Security Payment in 2025

When I first wrote this article, the average Social Security payment to retirees was $1317. Fast forward and the average Social Security payment in 2025 has risen to $1,976, reflecting a modest increase aimed at keeping pace with inflation. (AARP) But in the practical sense, nothing has changed.

This amount probably won’t be sufficient to cover essential expenses such as housing, healthcare, and daily living costs.

The Insured Retirement Institute published a study in 2018 stating that 42% of Baby Boomers have nothing saved for retirement.

Over the past 6 years it’s no better. Recent studies indicate that 20% of adults aged 50 and over still have no retirement savings at all, and 61% are worried they will not have enough money to support themselves in retirement. (Kiplinger) And only 25% of Boomers think they will be able to afford to retire. This means there are some 57 million people who can’t afford to retire. Knowing this, it’s important for those of us at or close to retirement age to explore additional income streams and financial strategies so that we can ensure a comfortable and secure retirement.

There’s no one coming to save you.

The Reality of Retirement Savings in 2025

For most of us Boomers and Gen-X, the 2025 landscape of retirement savings looks more like Beirut tahn Patagonia.

Yes, you can find data that tells us that individuals aged 55 to 64 have an average retirement savings of $537,560, while those aged 65 to 74 hold about $609,230. (Edward Jones)

But here’s the rub:

Averages can be misleading due to high balances held by a small percentage of savers. A more telling statistic is the median savings, which are substantially lower, indicating that many of us are far behind in our retirement preparedness.

Several factors contribute to this shortfall. For most of our working lives, companies have shifted from traditional defined benefit pension plans to defined contribution plans, such as 401(k)s. This has been a plus for them; maybe not so much for us.

It places the onus of retirement planning squarely on individuals. While 401(k) plans have become more prevalent, only about 50% of private-sector workers are participating. (WSJ) See the problem?

Not all employees even have access to these plans, and for those that do, participation rates vary. Not only that, increased life expectancy means retirees need their savings to last longer, and rising healthcare costs further strain limited resources.

And if the past couple years hasn’t shown you how Inflation erodes purchasing power, not much will. With all this in place, it’s imperative for individuals to save more to maintain their standard of living in retirement. Because living out of a refrigerator box would suck.

We can agree that the average Social Security payment in 2025 isn’t enough to live on. And if you’re counting on the largesse of that guy wearing the “Eat the Rich” t-shirt to vote to increase your Social Security payments, you might be disappointed. We’re already down to just 3 workers supporting each Social Security beneficiary. How much more can folks be expected to support that syastem?

All this goes to say that it’s critical that we are proactive about our financial planning and that we explore the idea of supplemental income strategies to secure a comfortable retirement.

The Terror of Inadequate Savings

If you are in your 40’s or 50’s or more and you don’t have enough stashed away for retirement, you need to take action.

I understand your situation. I’ve been there.

I found myself staring 60 in the face with less than $25,000 in my 401(k) and very little stashed away elsewhere.

Can you say “terrified”?

I was frustrated because I’d worked for more than 40 years and had little to show for it. I’d always intended to increase my savings rate, but kids, life and market crashes all seemed to have kept my intentions at bay. I feared the future, not knowing if I’d be able to retire, much less when. Because the average Social Security payment in 2025 barely (if even) covers the basics.

If this is you, exploring supplemental income strategies is what I determined was needed for me to catch up and find that 2nd comma that was missing from my account balance.

There are lots of ways you could develop a side income. One is to leverage personal skills and interests into profitable ventures. For instance, consulting allows you to utilize your professional expertise to assist businesses or individuals, Done for a few years on the side, you could even build this into a gig that provides cash flow to invest now and help support you later.

Some folks offer tutoring services in subjects like math, languages, or music. That could be both fulfilling and lucrative. The rise of digital platforms has also opened avenues such as freelance writing, graphic design, or virtual assistance, enabling us to work flexibly from home. You can even take hobby pursuits like crafting, baking, or photography and transform them into a small businesses, with products sold online or at local markets. By identifying and capitalizing on these opportunities, you can create sustainable income streams to build your investments now and to supplement those investments down the road.

You Can Still Fix Your Retirement

I understand that building a substantial retirement fund might feel like a huge task, especially if you’re starting later in life. But it’s never too late to take control of your financial future. We’ve talked about the notion that one effective way to catch up is by creating a side business that generates additional income. This extra cash flow can be directed into investments, helping you build wealth more rapidly.

Now, you might be wondering, “What kind of side business should I start?” I mentioned a couple in the last section but what I’ve found that works best for me are affiliate marketing and network marketing. Affiliate marketing involves promoting products or services from other companies and earning a commission on any sales made through your referral links. It’s a low-cost, low-risk venture that allows you to leverage your existing knowledge and networks. Plus, it offers flexibility, enabling you to work at your own pace and schedule.

On the other hand, network marketing, also known as multi-level marketing (MLM), focuses on selling products directly to consumers while recruiting others to do the same. This model can create multiple income streams and foster a sense of community and purpose. Many folks like us find network marketing appealing because it provides an opportunity to stay active, socialize, and earn income simultaneously.

The beauty of these two income sources is that they are “Location Optional”. You can do them from anywhere you have cell service or WiFi. So you can live like a retiree and still generate a formidable income. Build it right and it will continue to increase and throw off income whether you’re personally working, playing golf or hiking the Appalachians. You can supplement your income and actively build a pathway to financial freedom. It’s about finding that missing comma in your portfolio and ensuring a comfortable, secure retirement.

Conclusion: Your Financial Future is in Your Hands

The reality is clear: if you’re in your 40s, 50s, or beyond and you don’t have enough saved for retirement, waiting isn’t an option. But here’s the thing—taking action today can change everything. Social Security alone won’t cut it, and you can’t go back in time to start saving earlier. What you can do is build a side business that helps you catch up, grow your investments, and secure a future where money isn’t a constant worry.

Affiliate marketing and network marketing are two powerful ways to generate additional income without the heavy overhead of a traditional business. They allow you to leverage systems, technology, and, most importantly, other people’s efforts to create a sustainable stream of revenue. The best part? You can do this while still working your regular job, easing into it as you build momentum.

You don’t have to figure it all out alone. I’ve put together a guide called “It’s Not Too Late to Get Rich: The Missing Comma Approach to Late-Stage Wealth-Building.” This resource walks you through the exact steps to take control of your finances, grow your income, and finally get on track for the retirement you deserve.

Download it now and take that first step toward finding your missing comma. Your financial future is waiting.