Mar 26, 2024
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Social Security benefits will likely play an important part in your retirement income. After all, nearly nine out of 10 people aged 65 and older were receiving benefits as of June 30, 2023.
The estimated average monthly benefit for all retired workers in January 2024 was $1,907. Using 2000-2024 estimates, the annual hike in the average monthly benefit of all retired-worker beneficiaries was 3.53%. At this pace, the benefit could jump 23% to $2,348 by January 2030.
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According to research released in 2024 by the Social Security Administration (SSA), these benefits account for about 30% of the income of people over 65.
While Social Security benefits can provide a valuable addition to your retirement income, you’ll still need to build a separate nest egg to live comfortably. Here are a few ways you can do this:
It matters when you retire
If you choose to collect retirement benefits before you reach your NRA, you can do so as early as age 62, but your benefit will be reduced from your PIA, depending on how early you start. For example, starting your benefits at age 62 in 2024 means a 30% reduction from your PIA, compared to waiting until your NRA. Similarly, the benefits will rise if you retire after your NRA, up until age 69.
No matter when you choose to retire, an IRA can give you the retirement cushion you need.
With American Hartford Gold you can opt for a Gold IRA, which offers the tax advantages of a traditional IRA alongside the inflation-hedging properties of gold.
American Hartford Gold is an industry leader in precious metals offering Gold IRAs as well as the purchasing of physical gold and silver. When you open a Gold IRA with AHG, you can protect your retirement fund with a diversifying asset.
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The present and future of Social Security
The 3.2% Social Security cost-of-living adjustment (COLA) that took effect in January 2024 was announced in October 2023 and is based on the increase in CPI-W between the third quarters of 2022 and 2023.
Among beneficiaries age 65 and older, 37% of men and 42% of women receive 50% or more of their income from Social Security, according to SSA research.
The SSA projects the number of Americans 65 and older will increase to roughly 75 million by 2035, up from 58 million in 2022. This will put more financial strain on the government program as more people leave the workforce and start receiving benefits.
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Know how much you can expect from these payments, even as you work them into a comprehensive plan that paves the way for a rich life after work. Here are some alternative ways to build a nest egg that can allow you to live a comfortable life in retirement without relying too heavily on Social Security
Retirement income alternatives
Real estate is one of those investments that can net you some passive income whether you’re prepping for retirement or you’re already enjoying the post-career life.
Arrived’s online investment platform makes it simple. Through Arrived, you can easily invest in rental homes and vacation rentals without having to play landlord. Arrived offers a low minimum investment of $100, so getting started is accessible and you can quickly begin enjoying quarterly deposits to put toward your retirement in addition to your social security benefits.
There’s more to real estate than just residential properties. If you’re an accredited investor that has already made some headway on nest egg and you’re looking for your next big opportunity, investing in necessity-based commercial real estate through First National Realty Partners — a private equity firm — can help you add to your retirement fund.
FNRP will manage your investments for you, so all you are responsible for doing is enjoying consistent, passive income that can support your golden years.
Alternative or private assets in general are appealing because they typically show resilience to economic ups and downs when compared to the stock market. But how do you choose which assets to invest in?
With Fundrise you have access to an expansive portfolio of alternative investment opportunities spanning real estate, private debt and venture capital. With over two million investors, Fundrise is an accessible way to diversify your portfolio with the potential of yielding dividends every quarter.
To get started, all you have to do is share some details about your personal and financial background, along with your investment preference, and Fundrise will make recommendations based on your goals.
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