As individuals approach the threshold of retirement, prudent financial planning becomes paramount. Amidst all the thoughts of leisure and relaxation, a sobering reality emerges, Social Security, while a cornerstone of retirement income, falls short of meeting the needs of retirees.
While Social Security serves as a fundamental safety net, its benefits alone are inadequate to sustain a comfortable standard of living throughout retirement. The average monthly benefit in 2023 sat at around $1,767.03. Considering the high costs of food, healthcare, housing, and other daily expenses, this income does not go far enough.
Adopting strategies such as investing in 401(k)s, IRAs, or pension plans go a long way in fortifying your financial security during retirement. By diversifying income streams, individuals can mitigate risks associated with inflation and unforeseen expenses, leading to a more stable and prosperous retirement.
While this holistic approach is the best bet for a comfortable retirement, we think Social Security could be doing more. We urge Congress to pass a bill we call the Elder Relief Act. This legislation would drastically increase benefits for Americans 82 & up. Learn more here.