If you are a Social Security beneficiary, read more to know more about Social Security and how this affects with your retirement plans.

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We all know that Social Security is an important piece of most people’s retirement plan. But, there is a common misconception that Social Security will fund every Social Security beneficiary’s retirement alone, when in fact they will only cover a portion of a beneficiary’s retirement needs in most cases.

According to Tahoe Daily Tribune, the Social Security Bill was signed into law by then President Franklin D Roosevelt. The main idea of this was to bring economic security to retirees. At that time, the average life expectancy in the US was only 61 years old. However, the life expectancy kept on increasing.

What this means is that there are now more Social Security beneficiary that is collecting Social Security. The reality is that Social Security never intended to fully fund a Social Security beneficiary’s retirement. For this year, 2023, the highest Social Security payment for a Social Security beneficiary at full retirement age is $3,627 per month or $43,524 per year.

With government budgets under pressure and more Social Security beneficiary than ever, there is an additional uncertainty about how much income the Social Security will be able to fund in the future. Here we will be discussing what you, a Social Security beneficiary, can do when the Social Security income falls short of your overall needs.

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To address income gaps in retirement, a Social Security beneficiary should consider proactive strategies to supplement their social security benefits.

Here are three strategies that a Social Security beneficiary can do, according to Tahoe Daily Tribune:

• Build investment portfolios by prioritizing personal savings. Tax advantaged accounts are great ways to save on taxes now and allow your investments to grow tax deferred. Roth IRAs offer different but worthwhile benefits that allows you to pay taxes now, but all future growth is delivered tax free. When you pull out money, it does not count towards your annual income and to taxes are due.

• You can delay your retirement by one or more years. This provides double hex on financial security as your benefits will increase, and you are delaying the need to tap into your personal accounts for living expenses.

• Considering part time work during retirement. Benefits for this are well documented, including reducing the need to withdraw funds from your personal accounts, keeping engaged in activities, and having healthy social interactions.

While Social Security is an important component if a Social Security beneficiary’s retirement planning, it is unlikely to fully replace pre-retirement income, By taking other approaches to your retirement planning, individuals can enhance financial security and enjoy a more comfortable retirement lifestyle.

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