There is little doubt that in recent years, it appears that Social Security benefits are now being relied on more than ever to fund a comfortable and perhaps decades-long retirement for millions of American seniors. 

In fact, the Social Security Administration (SSA) stated that roughly 20 percent of married couples and 40 percent of singles receive at least 90 percent of their total overall income from the Social Security program.

For many financial experts, however, that’s a highly risky bet to take—considering that the average Social Security benefit amounts to only about $1,650 a month, which isn’t even $20,000 a year.

“There are different steps you can take to boost your Social Security benefit. Delaying your filing until age seventy, for example, will allow you to claim a higher benefit, as will boosting your earnings throughout your career,” wrote personal financial expert Maurie Backman at The Motley Fool.

“But as helpful as a higher Social Security benefit may be, in reality, you shouldn’t rely on that particular income source to sustain you in retirement. For one thing, Social Security is facing some financial challenges that could result in universal benefit cuts. … A better bet? Work on building yourself a solid nest egg. Chances are, it will do a lot more good than a higher Social Security check,” she continued.

Invest, and Invest Some More

So, what is one of the best ways to build up that all-important nest egg? According to Leah Bourne, the managing editor at The Money Manual, it’s all about creating great investing habits.

“The most important step a person can take to build generational wealth is to invest, invest, and invest—as early and as much as possible,” she told the personal finance resource site GOBankingRates.

“Creating a diversified portfolio in the stock market, and leaving the money there to grow over time is the average person’s best shot at generating enough wealth that they’ll be able to leave money to family members,” she added.

Baby Steps Can Lead to a Big Windfall

Backman noted that small steps taken right now can make a huge difference down the road.

“If you sock away $500 a month over the next thirty-five years, and you invest your retirement savings heavily in stocks, you might eke out an average annual 8 percent return, which is a bit below the stock market’s average. That would, in turn, leave you with a little more than $1 million,” she contended.

“Now, if you withdraw from your savings at a rate of 3.5 percent a year, that’s $35,000 in annual income. (For context, financial experts have long advocated a 4 percent withdrawal rate, but 3.5 percent is a bit more conservative and, for many people, more appropriate these days.) That, combined with Social Security, could make for a healthy financial picture,” she continued.

Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.

Image: Reuters.