Rich and poor alike can take advantage of Social Security, which provides a rare and valuable benefit, an income stream that continues for life and adjusts for inflation. There’s even a way to game the system—by waiting until age 70 to take benefits, rather than 62, you can boost your monthly check by 76 percent.
Social Security is crucial in the final years, when retirees are likeliest to run out of money. In the years before single people die, the EBRI study finds, they’re getting more than two-thirds of their income from Social Security. “It’s only Social Security that guarantees that you have an income until your last days,” said EBRI’s Sudipto Banerjee, the study’s author.
If relying on the government makes you nervous, save as much as you can while you’re working, research and scrimp for affordable insurance to protect against the costs of illness or long life, and pinch your pennies in retirement. It may not sound like a lot of laughs. But, with all its joys, life is serious business, and you don't want to be on the wrong end of it in old age.