(NewsNation) — For many Americans who are on Social Security benefits, it might be difficult for those benefits to cover everyday expenses.

So, what can you do if your Social Security benefits aren’t enough to live on?

How to supplement Social Security income

One way to add to your income when on Social Security is by also applying for Supplemental Security Income. This federal program will give you monthly payments if you have limited income and few resources, according to the Social Security Administration.

To be eligible for this program, you must be:

• 65 years old or older
• Partially or totally blind
• Someone with a medical condition that keeps them from working (expected to last at least one year)

Not everyone will receive the same amount in benefits. However, the basic benefit amounts for 2025 across the country are $967 for one person and $1,450 for two people. If you live in a state that adds money to federal SSI payments, then you could end up with more than the basic amount.

How can I maximize my Social Security benefits?

If you want to maximize your Social Security benefits, the best thing to do is to wait until full retirement age to retire. The Motley Fool recommends waiting at least until you are 70 years old, even though you can start claiming benefits at 62.

If you claim your benefits early, you will be required to take a reduction of up to 30% for each check. This means, if you were eligible to receive $3,000 per month if you waited until full retirement age, you could end up receiving only $2,100 if you claim early.

If you go to the Social Security website and create an account, you can find an estimate of what your benefits could be at each age. This can help you when you estimate your retirement expenses.

How to estimate your retirement expenses

The first thing you will want to look at is your monthly expenses. This can include your rent or mortgage payment, car payments, insurance payments, phone payments and more. After you have that number, you should consider any potential expenses you will have.

This can include one-time expenses, as well as travel expenses, groceries, eating out and any potential inflation.

Once that is finished, you will have to remain aware of what your budget is and stick to it. You will also need to be open to adjusting that budget as needed. According to BlackRock, it is best to stick to a new budget for a few months to see what adjustments need to be made, if any.

When figuring out what expenses to include in your budget, BlackRock suggests asking yourself some of the following questions:

• How many years do you have left on your mortgage?
• Will your health insurance premiums change after you retire?
• Do you plan on spending more on traveling or hobbies?
• Will inflation make your cost of living higher?

Taxes on retirement income streams

Yes, even in retirement, you have to pay federal taxes. However, the amount you need to pay will change depending on where you are getting your income from. According to Merrill Lynch, if you have a Roth IRA or a Roth 401(k), it will be tax-free (for qualified distributions).

Taxes on other retirement income streams include:

• Your normal income rate on traditional IRAs and 401(k)s, pensions or annuities, short-term capital gains, bond income and non-qualified dividends
• Your normal income rate on up to 85% of your Social Security benefits, with the rest not being taxed at all
• Long-term capital gain rates on long-term investment gains, which would include qualified dividends (You could also face a 3.8% net investment income tax)

This is why it is important to know what accounts you are putting money into and which ones will be best for you in the long run.