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Social Security benefits were meant to bolster existing retirement savings and pensions — not to make up for a non-existent nest egg.
Yet, according to the U.S. Census Bureau’s Survey of Income and Program Participation (SIPP), 49% of adults between the ages of 55 and 66 had no personal retirement savings.
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Let’s say you’re 65 years old and set to retire in a few months. You don’t have any retirement savings, but you’ll receive a monthly Social Security check of $1,900 — just slightly more than the $1,800 monthly average for retired workers as of June 2024.
Is it possible to live comfortably on what amounts to an average of $23,000 a year? Instead of waiting to find out the hard way, check out these three ways you can make your retirement dollars go further
Consider downsizing your home
Whether you rent or own property, one way to help free up some money in your retirement years is to downsize your home. According to the U.S. Census Bureau’s 2022 American Community Survey, 33.3 million Americans were mortgage-free.
If you no longer need the same square footage you once did when you were working or had more dependents, you can even consider looking outside your home city or state for areas where property taxes are lower and insurance costs aren’t as high.
This applies to renting as well. According to Apartment Advisor, in West Virginia, Kansas, and Arkansas the median rent for a one-bedroom is $725, $755, and $825, respectively. That’s significantly lower than the national average rent of $1,536 per month.
Read more: These 5 magic money moves will boost you up America’s net worth ladder in 2024 — and you can complete each step within minutes.
That doesn’t mean stop investing in real estate
While the growing price of real estate can be a good thing if you already own real estate, it’s made things increasingly hard for those looking to buy homes as an investment or to retire in.
Fortunately, you can still get the benefits of the hot housing market with companies like Cityfunds.
Cityfunds is a firm that provides direct access to a diversified portfolio of owner-occupied homes in the nation’s booming major cities, such as Austin, Dallas, Miami, Tampa, Denver, Phoenix and Nashville.
Here’s how it works: Cityfunds secures an interest in the home’s future value, and as the home value appreciates, so does the value of the Cityfunds investment alongside the homeowner. As the home value appreciates, so does the value of your Cityfunds equity investment, alongside the homeowner.
You can effortlessly gain access to the $20 trillion home equity market that spans multiple top U.S. cities and start investing for as little as $500.
And with mortgage rates and real estate prices continuing to rise, renting has become the only option for many Americans. Fortunately, whether you rent or own, platforms like Arrived allow you to benefit from the hot rental market as an investor.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes and vacation rentals, without taking on the responsibilities of property management.
Getting started is simple: browse through a curated selection of homes (each vetted for their appreciation and income potential), and choose the number of shares you want to buy.
You can start investing in real estate with as little as $100.
Cut costs, boost savings
Another way to get more out of your Social Security check is by prioritizing value.
For instance, your home is likely the biggest financial investment you have made. While it’s essential to keep that asset protected, it’s also important to make sure you’re not overpaying for monthly necessities like home insurance.
Normally, shopping around for insurance quotes takes forever and it’s a hassle to field multiple phone calls from different insurance agents.
With BestMoney, you’ll be able to find the lowest prices on home insurance online in just a few minutes.
Comparing rates is free and simple. Just fill in your bit of information and BestMoney will instantly sort through over 200 insurers to help you find the best deals available in your area.
Of course, if you have a vehicle parked in the driveway, there’s also auto insurance to consider.
As personal finance celebrity Dave Ramsey has noted on his show, owning a car can keep people living paycheck to paycheck.
To save money, consider selling your car and using public transportation or rideshare services. If you need a car, trading it in for a cheaper model can also help reduce costs in retirement.
Depending on your driving history and the make and model of your car, there are some insurers that can offer you far less than what you’re currently paying.
Thanks to OfficialCarInsurance, comparing multiple insurance companies is easier than ever.
All you have to do is answer a few some quick questions: your age, your home state, the type of vehicle you drive and your driving record.
Based on your answers, they’ll sort through leading insurance companies in your area, so you can find the lowest rate possible.
Work while receiving benefits
One upside of Social Security is that you can still work and earn benefits. Mind you, your Social Security deposits can be reduced if you earn above certain limits while receiving them.
However, if you’re under full retirement age (67 for those born after 1960) you can earn up to $22,320 annually without your benefits being affected. Additionally, in the year you reach full retirement age, the limit increases to $59,520, and earnings are only counted up to one month before your birthday.
After you reach full retirement age, you’re free to work and earn any amount you want without reducing your benefits.
To maximize the longevity of your Social Security benefits, your nest egg, or any other income you plan on earning to supplement that fund, most people would tell you to consult with a financial advisor. Making that decision is the easy part — figuring out how to find the right advisor for you and your situation is the challenge. To get started on the right foot, consider Zoe Financial.
With an exclusive network of fiduciary advisors, Zoe offers access to experts who can help you build a personalized strategy tailored to your financial situation and goals.
What sets Zoe Financial apart is their commitment to transparency and fiduciary duty. You can view the advisors’ profiles, read past client reviews, and schedule an initial consultation for free. with no obligation to hire.
You’ll get bespoke wealth management services, exclusive investment opportunities and a whole team dedicated to helping you achieve your financial goals so that you aren’t leaving the fate of your retirement dreams to social security checks.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
