Bridging the Social Security Retirement Income Gap

Bridging the Social Security Retirement Income Gap

October 1, 2023

Social Security income typically constitutes only a portion of the income most retirees require. These benefits were originally designed to complement, not replace, other income sources in retirement. According to data compiled by the Social Security Administration based on research conducted in 2021, Social Security retirement benefits typically make up just around 30% of an elderly individual’s income*. Consequently, a significant income shortfall remains for those who solely rely on Social Security.

To bridge this income gap, most retirees need to depend on their savings to generate income. For retirees who are cautious about market volatility or anticipate a lengthy retirement, annuities can help offer a stable income foundation. It is strongly advisable for retirees to secure guaranteed income to cover essential expenses, which include necessities such as food, housing, heating, and healthcare. The goal is to establish a more robust and consistent income stream throughout your retirement years.  Purchasing an annuity can help to achieve this goal.

For further tips and information about Social Security, you can access our free “Re-think the Value of Social Security” booklet HERE. If you’re interested in addressing the income gap you might have between your required income and Social Security benefits, feel free to reach out to a KSKJ Life Agent today!

*Source:  Social Security Administration 2023    https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf

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