Social Security is supposed to help people retire. So why are so many recipients considering going back to work?

Social Security provides a critical source of retirement income for millions of retirees. For many years, it was seen as part of a “three-legged stool” of retirement planning, with the other two legs being a pension and personal savings. But times have changed since then, and many workers are struggling to save for retirement largely on their own.

Despite receiving Social Security checks, 44 percent of retirees are considering a return to the workforce, according to The Motley Fool’s recent Attitudes Toward Social Security Cost-of-Living Adjustment (COLA) survey. Here’s a closer look at why.

Social Security was never meant to cover all retirement expenses

As discussed above, the government designed Social Security to supplement personal savings and a pension. But today’s workers rarely receive pensions, and many have struggled to make up the difference in personal savings. That makes them increasingly dependent on Social Security.

Social Security covers about 40 percent of pre-retirement income for average-earning workers. If you need 80% of your pre-retirement income to cover your retirement expenses, it lets you get half of the funds on your own. Those who cannot save enough in a retirement account may choose to return to work.

The purchasing power of social security is declining

The purchasing power of Social Security has fallen 20% since 2010, according to The Senior Citizens League (TSCL). That means you would have to spend $1 today to get what you could get for $0.80 14 years ago. This is despite annual cost-of-living adjustments (COLAs), which are supposed to help benefits keep up with inflation.

To complicate matters, the gradual increase in average benefit checks puts more recipients at risk of owing Social Security benefits taxes each year. This could leave them with even less to cover their own expenses, forcing them to rely more on income from a job to make ends meet.

The future of social security is uncertain

The most recent report from the Social Security trustees predicts that the program’s trust funds will run out in 2035. After that, it will be able to pay only about 83 percent of scheduled future benefits.

It is likely that the government will step in and find a way to increase funding for the program before that happens. But we have no way of knowing what the solution will look like. So some retirees may prefer to return to work and a more predictable source of income.

what can you do

Seniors can’t control the decline in the purchasing power of Social Security or trust funds, so going back to work is an option for those struggling to cover their retirement costs with their benefits alone. Those considering such a move should remember that they don’t have to go back to the type of work they’ve done all their lives.

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You can choose something that feels more suited to your interests and talents. Nor do they have to pay as well as the jobs of years past. It just needs to provide you with enough income to cover your basic expenses.

If you don’t want to give up too much of your free time, you might consider working part-time. Or you may find something at a distance depending on your skill set. This could be a good option for those hoping to travel in retirement or those who have family care requirements or health conditions that may limit their ability to work in person.

It may not be your ideal retirement, but it’s a better option than running out of money. You don’t have to work the entire pension either. Consider returning to the workforce for just a few years. If you manage to build up your savings enough, you may be able to move back to a full pension.

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Social Security is supposed to help people retire. So why are so many recipients considering going back to work? was originally published by The Motley Fool