Over 60 million Americans receive Social Security, and although the program was never intended to be a main financial resource, many in retirement still count on it in their golden years.
The average retiree receives around $1,400 a month from Social Security. That works out to be just under $17,000 a year, an amount that is simply not enough to live comfortably in retirement.
Because Social Security is only intended to supplement your retirement income, it is important to boost your retirement savings. If you’re still working, you can contribute up to $18,500 a year into a 401k plan. If you don’t have access to a 401k, you can open your own IRA and contribute a maximum of $5,500 a year. Not everyone will be able to contribute the maximum amount, but the main point is to do something — even starting with modest amounts can help. In fact, at Ariel, you can start an IRA with an automatic investment plan of $50 per month.
Undoubtedly, Social Security remains an important program. But remember, it was only intended to play a supporting role in your overall retirement savings. Take action today and plan for your golden years.
The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.