Fortunately, Social Security continues to provide families with a basic level of income security. It prevents millions of Americans from slipping into poverty when their working years are over because, like a pension, Social Security provides Americans with an income stream that they cannot outlive. However, Social Security was never meant to be people’s sole source of retirement income. The program replaces only about 40% of the average person’s income after retiring, but people typically need 65-85% percent of pre-retirement earnings to maintain their standard of living. 16 Thus, a robust private retirement system is absolutely essential to.