Worried About Social Security? Explore These Supplementing Strategies
Before diving into this months article, Supplementing Social Security: Strategies you may want to consider, lets recap last month. We discussed why Social Security’s future is in doubt and the possible reforms that may occur, such as, raising the full retirement age, increasing payroll taxes, and benefit reductions for high earners. This month, we’ll explore what you can do to help ensure a comfortable retirement regardless of what reforms may come.
Given the uncertainty surrounding Social Security, the key to a stable retirement is not relying solely on government benefits. Instead, you should look at Social Security as just one piece of the retirement puzzle. To help secure your financial future, consider these strategies for supplementing social security income:
Maximize Contributions to Retirement Accounts
Retirement accounts like 401(k)s and IRAs can be crucial for building a more reliable income stream. If you’re not already contributing the maximum allowed, now is the time to ramp up your contributions. Many employers also offer matching contributions to 401(k) plans, effectively giving you free money toward your retirement savings
Diversify Your Investments
Don’t put all your eggs in one basket. A diversified investment portfolio can help you mitigate risks and take advantage of market opportunities. Consider a mix of stocks, bonds, and other investment vehicles tailored to your risk tolerance and timeline.
Delay Claiming Social Security Benefits
While you can start claiming Social Security benefits as early as age 62, delaying until your full retirement age—or even later—can significantly increase the size of your monthly benefit. If you can afford to wait, this can be a smart strategy, especially if you are healthy and expect to live longer.
Explore Income Streams in Retirement
In addition to savings and investments, some retirees choose to generate additional income through part-time work, consulting, or rental properties. These income streams can help you cover expenses while keeping your savings intact for later in life.
Consider Professional Financial Planning
Preparing for retirement is complex, and Social Security is just one piece of the puzzle. A professional financial planner can help you create a comprehensive retirement strategy that accounts for potential changes to Social Security while optimizing your savings and investments.
Have more questions about supplementing social security?
While Social Security will likely still exist in some form, preparing for potential changes now can put you in a stronger financial position when retirement comes. By boosting your savings, diversifying your investments, and consulting a financial advisor, you can feel more confident in your ability to maintain your lifestyle in retirement—regardless of how Social Security evolves.
At East Coast Tax and Financial, we specialize in helping individuals plan for a secure retirement. Our team can guide you through the complexities of Social Security and help you create a customized strategy tailored to your needs. Don’t leave your retirement to chance—reach out to us today for a consultation and start building a brighter future.
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