There are three unpleasant truths about Social Security that you need to face right away.

To make the most informed decisions about your retirement, it is essential to learn as much as possible about Social Security as soon as possible.

Unquestionably, Social Security is an advantageous program that has helped keep millions of retirees from falling into poverty. The reality of retirement may fall short of your expectations, and a person’s financial stability is at risk if they count on less from Social Security.

You want to reach retirement age by finding out that your Social Security benefits won’t cover your basic living expenses. Confront these unsettling truths as soon as possible while you still have the chance to do something about them.

The benefits need to be increased.

You should know right now that Social Security benefits will only provide you with a bit of money to maintain your current standard of living once you reach retirement age.

Experts advise saving enough for retirement to replace roughly 80% of your pre-retirement income. If you have health problems or plan to travel, you may require more. You could make do with less, but it would require some compromises.

Unfortunately, relying solely on Social Security income will only get you at that 80%. These benefits aim to replace 40% of your or before income, about half of what you’ll truly need. This is because combining Social Security with other sources of income, such as a pension or savings, is how the program was initially envisioned working out for most people. If your employer doesn’t provide a pension plan (which is common), you should make arrangements for these additional safety nets.

The value of benefits is falling.

Social Security is a desirable retirement income option partly because it is designed to mitigate the effects of inflation. To keep up with rising prices, the benefits program automatically increases payments through cost-of-living adjustments (COLAs).

The COLA method has problems, including doubts regarding whether the correct cost-of-living index is utilized to calculate the required annual increase in benefits. Therefore, the purchasing power of Social Security payments has decreased by around 40% since 2000.

Your ability to live off your Social Security check will undoubtedly decrease as you age due to the gradual depreciation of your benefits. The difficulty with this is that after years of withdrawals, your retirement savings amount might be smaller than you’d like.

It would help if you prepared for the fact that your Social Security income will decrease your standard of living and prevent you from depleting your savings too early.

Early Social Security retirement benefits filing may be necessary.

Finally, many people count on receiving Social Security benefits in their golden years. In the best-case scenario, waiting to file for benefits can increase the monthly amount you receive. 

However, if you are forced to retire early and need more resources to cover living expenses, your hopes of delaying your claim may be dashed.

It is safer to plan for your Social Security payments to begin at age 62 than to assume you will start receiving them at age 67 or 70 (and receive the more significant benefit that comes with a later claim). You can gain more from the extensive checks you receive if you delay filing for benefits. However, filing a claim early will only ruin your finances if you’re compelled to do so.

Recognizing these three sobering facts now will allow you to build plans for the future that do not rely on faulty assumptions about Social stability and, ultimately, provide you with the financial peace you deserve.