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Also heres five expenses to cut sooner in retirement.
Ive had the privilege of helping manage my aunts retirement plan, said Zhang.
Her experience offers valuable insights into how Social Security covers expenses and where it falls short.
Retiring Early With Lower Benefits vs.
Her Social Security benefit is $1,800 per month.
However, it doesnt stretch to cover all her needs and wants.
The ever-rising cost of health care is the primary reason why.
Her Medicare premiums, about $170 per month, eat into her Social Security check, said Zhang.
Social Security doesnt come close to covering her travel aspirations, said Zhang.
So, Social Security Plus How Much per Month?
Zhangs aunt supplements her Social Security checks by withdrawing roughly double her monthly benefit from her nest egg.
So how did Aunt Sarah decide on $2,500 per month?
Four percent of $800,000 is $32,000, which comes out to about $2,667 per month.
That puts Aunt Sarah comfortably under the mark by about $167 per month.
Everyones number is different, but for Aunt Sarah, $2,500 was just right.
This allows her to enjoy some luxuries and handle unexpected expenses without stress, said Zhang.
Sarahs experience has taught me the importance of robust retirement savings beyond Social Security, she said.
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