In reality, many older American end up retiring on Social Security alone. And people in that boat unfortunately risk a world of financial hardship -- especially when Social Security benefits don't rise very much from one year to the next.

For the second straight year, former federal workers will see a smaller increase to their defined-benefit annuities in January, with FERS retirees set for a 2% increase and CSRS annuitants a 2.5% bump.

Social Security recipients are expected to receive a smaller cost-of-living increase in January than in recent years as inflation moderates