3 Ways to Supplement the Average Monthly $2,008 Social Security Benefit

The average Social Security benefit is just $2,008 as of August 2025. This is not an impressive amount of money for retirees. A monthly benefit of $2,008 would provide an annual income of $24,096, while the federal poverty level for a single person is $15,650 in 2025. The Bureau of Labor Statistics also reports a median weekly income of $1,043 per worker in the U.S., so collecting just $2,008 per month would be a major pay cut for many people after retirement. 

While it may seem like a glitch that these benefits are so low, it’s not. The reality is that you should not expect to get all of your income, or even most of it, from Social Security in your senior years. Benefits are supposed to be part of a three-legged stool, including a pension and savings. The problem is, the other two legs are wobbly. Many people don’t have a lot of savings, and private sector workers don’t usually have pensions.

So, what can you do to make sure you have enough money in your later years? Here are three ways to supplement your Social Security benefits. 

1. Draw from retirement accounts

One option that you have available to you to help fund your retirement is to take money out of retirement accounts such as a 401(k) or IRA.  The upside of this option is that you get tax breaks to help you make investments in these accounts.  If you have a workplace 401(k), you may also get employer matching contributions. 

401(k) and IRA accounts can also provide some flexibility, as you may be able to choose between traditional accounts that come with upfront tax breaks and Roth accounts that defer tax savings to retirement. And, while a 401(k) usually only lets you choose from around a dozen or so funds, an IRA allows you to invest in almost anything you want.

Unfortunately, there are downsides to this option. You need to contribute to these accounts to build a big enough nest egg to generate enough income. Usually, you’ll need around 25 times the amount of income you want the account to produce, so if you want $40K in income, you’d need a $1 million balance. Plus, you need to know how to invest, and there’s a risk of the money running out too soon if you don’t follow a safe withdrawal rate. 

You’ll need to think about the pros and cons when deciding if this approach is the best way to supplement benefits.

2. Work while collecting benefits

Working while collecting Social Security is another option to supplement benefits, and it’s the choice of many seniors, either by necessity or by desire. Some people want to keep working at least a little instead of pursuing a traditional retirement path, often because they like their job and find meaning in it. For others, working to supplement Social Security is a necessity because they don’t have enough money in their retirement plans and don’t have other options.

The pros of this approach are that you can stay active and engaged within your community, and there is theoretically no limit to how much you can earn. The downsides are that continuing to work isn’t always possible due to health reasons or a lack of jobs. Plus, if you haven’t reached your Social Security full retirement age, there are limits to how much you can earn without temporarily forfeiting part of your benefits.  You’ll need to take that into account when deciding if working is feasible or is the right approach.

3. Purchase an annuity

Finally, you can buy an annuity and use that to supplement your Social Security. Annuities have some big benefits, including the fact that you can find options that provide guaranteed income for a set time period, including for the rest of your life. This can make them a predictable solution, which is ideal for risk-averse seniors. 

Annuities also don’t have typical contribution limits like 401(k) or IRA accounts; they are highly customizable with riders, and they can provide a steady and predictable monthly stream of income. There is also a lot of flexibility in terms of different annuities and the type you buy.  The ability to generate fixed income gives annuities a huge advantage over working and over investment distributions, as neither paychecks nor investment funds are necessarily going to be stable or guaranteed to last. 

There are downsides, too, of course, including the potential for high fees as well as the fact that annuities are complex financial products, so you’ll need to research to find the right one. Still, if you want the certainty of knowing you have another reliable income source without surprises, an annuity could be the way to go.

Ultimately, you may decide that some combination of these options is best to supplement your Social Security, and that can be a great solution as you get the best of all worlds and build a truly secure future for your later years.