Why is Social Security important?
Social Security is crucial to many seniors and is one of the few social programs that has widespread support across the political spectrum. According to a 2020 AARP survey, the federal program was supported by 90% of Republicans, Democrats, and independents.
While Social Security is meant to provide an extra amount of money, many seniors end up relying on those retirement benefits as their main source of income. According to the Center on Budget and Policy Priorities, half of the retirees get at least half of their retirement income from Social Security.
Think of retirement income as a “three-legged stool” (the National Institute on Retirement Security came up with this metaphor). The first leg of the stool is your Social Security; the second leg is your pension plan. And the third is your personal savings through an individual retirement account (IRA) or an account like a 401(k).
With only 50% of private sector employees having a 401(k) at some point, Social Security is one of the most essential elements of retirement income’s three-legged stool. Many Americans rely only on Social Security, and if you’re one of them, you really don’t want to have that retirement benefit level cut.
