Most people heading into retirement have a rough idea of what their Social Security check would look like. What’s much easier to underestimate is how far that check would actually go once the monthly bills start adding up.
For millions of Americans with little saved outside Social Security, the difference between monthly income and monthly costs could be much bigger than expected. Here’s how large that shortfall could become and how to see whether your retirement plan has enough room to cover it.
Find Out: 13 moves seniors could benefit from but often forget about.
How much Social Security may leave uncovered
The average retired worker receives about $2,071 a month from Social Security in 2026, or roughly $24,850 a year.
That income could feel pretty tight once you compare it with what retirement can cost. Households age 65 and older spend about $61,400 a year on average, according to Bureau of Labor Statistics data.
Even a retiree with below-average expenses is likely spending $35,000 to $45,000 a year once rent or mortgage payments, groceries, Medicare premiums, and prescriptions are counted.
And the gap could become much harder to cover when there isn’t much money set aside. The 2026 Retirement Confidence Survey found that 22% of workers have less than $1,000 saved or invested outside their home.
For someone in that position, even a few hundred dollars of expenses beyond what Social Security covers each month could be difficult to make up.
Shopping for cheaper auto insurance? Enter your zip code here to get started.
What the gap looks like at different savings levels
How much you need from other sources depends heavily on what you have saved by retirement. With the average Social Security benefit of about $24,850 a year and $40,000 in annual expenses, you’d still need roughly $15,000 to cover the rest.
With $200,000 saved, you could cover about $8,000 of that amount each year using the widely referenced 4% guideline. Combined with the average Social Security benefit, that would give you roughly $32,850 a year and leave about $7,000 of a $40,000 budget uncovered.
A larger nest egg could give you much more room. With $500,000 saved, a 4% withdrawal provides about $20,000 a year, which could make a big difference when combined with Social Security and give you more flexibility in retirement.
Why the shortfall could grow over time
Healthcare costs have been rising faster than general inflation for years. In late 2025, healthcare inflation was running at about 3.2% while the Social Security COLA for 2026 was 2.8%. Over time, increases like that could leave more of your monthly benefit going toward medical bills.
Social Security itself could also face a reduction if Congress doesn’t address the program’s funding shortfall.
Once the retirement trust fund runs out, currently projected for late 2032, incoming revenue would cover about 78% of scheduled benefits. A $24,850 annual benefit could fall to roughly $19,400, adding more than $5,000 to the yearly income gap.
Rising property taxes and housing costs are also putting pressure on retirees who own their homes, especially in areas where home values have climbed sharply over the past decade.
Save Money: Things to cut when living on retirement (many people ignore #11)
Where you may still have room to catch up
If you could wait until 70 to claim Social Security, your monthly benefit could be about 24% higher than at 67. A $2,071 benefit would grow to roughly $2,568, giving you nearly $500 more each month or about $6,000 a year to put toward the gap.
A little more saving during your final working years could add up as well. If you’re 55 and contribute an extra $5,000 a year to your 401(k) for 12 years, an average 6% return could leave you with roughly $85,000 more by retirement.
Your retirement income could also go further when your biggest expenses are lower. Housing, for instance, takes up about a third of the average older household’s spending, so lowering that cost before retirement could leave more of your Social Security and savings available for everything else.
How to estimate your own gap
Your my Social Security account could give you an estimate of what your monthly benefit could be at different claiming ages.
Multiply the amount you expect to receive by 12, then add the yearly income you expect from your savings. If you’re using the 4% guideline, $200,000 saved would provide about $8,000 a year.
Compare that income with what you expect to spend in retirement. Your current budget could give you a useful starting point once you account for expenses that may change after you stop working.
The difference between those two numbers is your retirement income gap, giving you a number you could use when deciding how much more income or savings you may need.
Bottom line
Your Social Security check may cover a good part of retirement, but it may not stretch as far as your monthly expenses require. For people with little saved, even a relatively small yearly shortfall could become much harder to cover over a long retirement.
Knowing your own number early gives you more time to close the distance. The sooner you see what your income could realistically cover, the sooner you could make the right moves and head into retirement with fewer financial surprises.
More from FinanceBuzz:
