Personal Wealth Management / Retirement

Overestimating Social Security Benefits | Fisher Investments Common Retirement Investing Mistake #6

Retirement is supposed to be an exciting time. Finally, you have the time to travel and pursue the hobbies that you were unable to during your working years. Unfortunately, many spend much of their retirement worried about their finances. At Fisher Investments, we’ve helped thousands of individuals and families plan their financial futures so they can enjoy a comfortable retirement.




Title screen reads: Common Retirement Investing Mistakes, Mistake #6: Overestimating Social Security Benefits


A woman in a blue suit appears next to a white board. The board reads: “Social Security Is Just One Part of A Successful Retirement Strategy.”

A subhead on the board reads: “On average, Social Security benefits only replace 40% of pre-retirement earnings.”

A bar graph demonstrates the top section of earnings as not qualifying for a social security benefit.

Woman in blue suit: Social security is an important component of the American retirement system, and for many, social security benefits are an essential source of cash flow in retirement. But your benefit will likely not replace all of your income in retirement. For average earners, social security retirement benefits only replace about 40 percent of pre-retirement earnings. If you have lower earnings, your benefits will likely replace a larger percentage of your income. If you are in the upper income brackets, your social security benefits will likely replace a smaller percentage of your income.

Woman in blue suit: That may sound counter-intuitive, but the social security program was designed to reduce poverty amongst retirees. As such, annual earnings above a set amount do not count towards your benefit.

Woman in blue suit: The average monthly social security payout in June of 2019 was $1,470. This will likely be a very welcome source of retirement income, but remember that social security is just one part of a successful retirement strategy.

The woman appears back on screen next to a graphic of seven common investing mistakes.

Woman in blue suit:Thanks for watching. You can check out our other six common retirement investing mistakes to learn more about what to avoid as you plan for your financial future.

Woman in blue suit:If you enjoyed this video, you can click the subscribe button and ring the bell to be notified when we publish new content.

Woman in blue suit:Thanks for watching.

A series of disclosures for Fisher Investments appears.

“Investing in Securities involves a risk of loss. Past performance is never a guarantee of future returns. Investing in foreign stock markets involves additional risks, such as the risk of currency fluctuations. The foregoing constitutes the general views of Fisher Investments and should not be regarded as personalized investment advice or a reflection of the performance of Fisher Investments or its clients. Nothing herein is intended to be a recommendation or a forecast of market conditions. Rather it is intended to illustrate a point. Current and future markets may differ significantly from those illustrated here. Not all past forecasts were, nor future forecasts may be, as accurate as those predicted herein.”


Image that reads the definitive guide to retirement income

See Our Investment Guides

The world of investing can seem like a giant maze. Fisher Investments has developed several informational and educational guides tackling a variety of investing topics.

A man smiling and shaking hands with a business partner

Learn More

Learn why 150,000 clients* trust us to manage their money and how we may be able to help you achieve your financial goals.

*As of 3/31/2024

New to Fisher? Call Us.

(888) 823-9566

Contact Us Today