If you had to guess now how much your current income will be replaced by Social Security in retirement, you would likely guess too high. Most people would. The truth is, Social Security is only meant to cover about 40% of an average worker’s wages during retirement. The fact that most people expect it to cover more than that leads to money troubles for a lot of retirees.

So where is the rest of the money supposed to come from if Social Security only goes so far? Your retirement savings. That is why most personal finance experts push so hard on people to start saving for retirement as soon as possible. The government has a safety net in place, but we need to be realistic about how far the money will actually go.

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