Social Security Income and Beyond

by The Bainbridge Firm, LLC | Feb 02, 2017 | Social Security and Disability Compensation

Saving isn’t an easy thing for most people, and I am here to tell you that you are not alone. Tons of people live paycheck to paycheck and/or just have really bad saving habits… like, not saving at all or beginning the unforgivable cycle of telling yourself “I’ll just replace it”. Unless you envision yourself working your entire life, this cycle must stop!

BillsAs working citizens, we pay into Social Security and upon retirement we expect to receive our Social Security Income with no problems… however the biggest problem we incur is it not being enough. The average retiree receives only $1,360 a month in benefits! It doesn’t take a math mathematician to figure that income alone will not suffice. It is reported Social Security serves as the sole source of income for almost 25% of Americans over the age of 65, and that one in three Americans 55 and over have nothing saved for retirement.

unfortunately, bills do not stop when you stop working. Since Social Security is not designed to cover living expenses in full but only about 40% of pre-retirement income, we must break the cycle to cover the other 60%. So how? First determine what’s best for you in your current situation. It could be as simple as using a shoe box to hold funds but if you’re prone to “dig in the piggy bank”, maybe a shoe box wouldn’t be a good idea. I’d suggest searching different account options with the bank, choose the best interest rate to maximize your income and allow it to directly come out of the pay you receive from your employment. Also if you are working, it’s never a bad idea to start an IRA or 401k with your employer, this is a sure way to save and have extra income once retired.

Moral of the story: Go beyond your day to day and start planning for once you’re retired, you obviously can’t rely on Social Security Income alone. It doesn’t matter how old you are or how long you’ve waited start now to save you stress later!

Tags: 401k income IRA paycheck save Social Security