One of the biggest mistakes that people of retirement age make is relying on their Social Security benefits as their sole source of income. Social Security, while beneficial, very rarely reaches the amount to sustain a person throughout their retirement, often leaving seniors struggling to pay their bills and making their retirement more stressful than it needs to be. Fortunately, with a little planning, it is easy to augment your social security benefits and enjoy your retirement in comfort. Here are a few ways to supplement your Social Security income, including hiring a trusted attorney to help you fully develop a plan for your retirement.
Learn Some Basic Facts About Social Security
Before we move forward with supplementing your Social Security income, it might be interesting to learn just how fully Social Security has come to be relied on by retired persons.
90 percent of people over the age of 65 receive some sort of Social Security benefit, representing almost half of their yearly income. Clearly, a tremendous amount of people are finding themselves relying solely on Social Security to maintain their livelihood, putting themselves in a precarious situation should an emergency situation arise. Planning ahead for your retirement means you won’t have to be one of these people who are a hair’s breadth away from potential financial ruin.
Fund a Retirement Plan Well Before You Need It
Out of all the advantages of youth, one of the drawbacks is the occasional inability to see the future as a present concern. However, when planning for your retirement, it is a much better idea to start now rather than later. To avoid being reliant on Social Security, you should fund a private retirement plan well before you need it. Whether the retirement plan is offered by your employer, or is in the form of an IRA, making sure that you have a dedicated retirement plan outside of Social Security will make sure you don’t have to worry about your finances in your later years.
Leave Your Retirement Fund Untouched
When you find yourself in emergency financial situation, it is important that you don’t try to solve the problem by dipping into your retirement fund early. This practice is known as un-saving, and it is one of the most destructive things you can do to your retirement prospects. Un-saving means that you are preventing your retirement fund from accruing interest, which means you will have to be more reliant on Social Security once you retire. Make sure not to touch your retirement fund until it has fully developed and you’ve retired.
Diversify Your Retirement Savings
Some types of retirement funds, like IRAs, come with contribution limits, decreasing the amount you’re able to save. In order to make sure you have as much capital possible when you retire, it is a good idea to have a diverse array of savings that don’t fall under the specific retirement fund umbrella. You can put some money in things like mutual funds, real estate investment trusts and certificates of deposit to make sure that your retirement capital isn’t concentrated in one place, increasing your security.
Develop a Post-Retirement Career
Many retirees find that they miss the structure and purpose that their careers gave them, which is why planning on a post retirement career can be a good way to supplement your Social Security. Find a part time job you’re passionate about, and use the paycheck from that job to maintain your post retirement savings. This way, you’ll always know you have a steady source of income to get you through hard times.
Eliminate Your Debt
Of all the financial burdens that can derail a retirement plan, debt is the number one concern. To preserve your retirement fund and make yourself non-dependent on Social Security, you should try and clear all of your debt before you retire. Eliminating debt will increase your financial stability and secure your retirement plans.
Get Help Planning How to Supplement Your Social Security
Because planning for your retirement is such an important task, you shouldn’t have to go through it alone, which is when you need to hire the team at the Law Offices of Dr. Bill LaTour, Attorney at Law. We can help you develop an aggressive, effective retirement plan that will make sure you are financially stable throughout your retirement without having to rely on Social Security. Contact us right away and start planning for your future—it will be here before you know it.