Here Are Some Tips to Boost Your Retirement if Social Security Isn't Enough
According to the Social Security Administration, 20 percent of married couples that are retired depend on social security checks for 90 percent of their income. However, social security was never intended to be a primary source of income for retirees. Instead, it aimed to cover around 40 percent of pre-employment income while the other 60 percent was supposed to be on retirees.
Experts recommend these options if you are close to retirement and will need to depend on social security for more than 40 percent of your income.
1. Increase your retirement contributions
Starting early definitely helps, but invest whatever you can now so that it could be worth more later. Check to see if your employer offers a 401(k) match that could help boost your retirement savings.
Furthermore, there are ways to help you catch up on retirement savings if you started late. If you are over the age of 50, you have the ability to contribute additional money to traditional and Roth IRAs. You can add an additional $6,500 per year in your 401(k) and an extra $1,000 into your Roth.
2. Consider reevaluating when you plan to retire
A little more than half of Americans stated that they expect to work past 65 or never retire, according to a survey from the Transamerica Center for Retirement Studies. If you are going to depend on Social Security for most of your post-employment income, you may want to evaluate your target retirement date.
You could also pick up a part-time job to add some additional income on the side and keep you busy.
3. Delay claiming benefits
One interesting fact is that you can actually earn more from Social Security if you wait longer to claim benefits. If you wait until after you are considered fully retired, you are eligible to receive as much as 32 percent more each month. You can delay benefits up to the age of 70 and you will earn more each month.
Social Security was never intended to fully-supplement income. Starting to save and invest now can help you retire comfortably.