Workers need large portfolios to cover the rest
The Social Security replacement rate is roughly 40% of a typical worker’s pre-retirement earnings.
For a median worker, this translates to an annual Social Security benefit of $25,688, based on median full-time earnings of $64,220.
The remaining 60% must come from other sources, such as invested savings, which can be a challenge given the current low personal savings rate of 3.9% in Q1 2026.
Higher earners face a larger shortfall since Social Security replaces a smaller share of their income, requiring proportionally bigger invested portfolios.