Building on the ‘fantastic foundation’ of Social Security
"Social Security is a fantastic foundation for retirement," Fink said. "But if that's all you have when you retire, you're going to be living below the poverty line. It's supplemental but it's not meant to be the totality of what you have in retirement."
While there’s no consensus on how much money you need to retire (and everyone’s situation is different), one yardstick is the 80% rule, where you plan to spend 80% of your pre-retirement income per year. Assuming you retire from a job with a $100,000 annual salary, Social Security won’t come close to cutting it.
The current average monthly benefit for retirees is $1,907, or just under $23,000 a year, according to the Social Security Administration. The shortfall? More than $57,000. The maximum benefit for an individual retiring at age 70 in 2024 is $4,873 per month or $58,476 a year.
In order to live the retirement you want, you’ll need to save up a separate nest egg to supplement your Social Security benefits.
By opening a gold IRA you can enjoy the tax advantages of an IRA and the inflation-hedging properties of gold as you grow your nest egg.
With the help of American Hartford Gold — an industry leader in precious metals, offering physical delivery of gold, silver and platinum — you can open a gold IRA and preserve your retirement dreams with an inflation-resistant asset that will bulk up your savings regardless of the economic circumstances.
You can also try out high-yield savings account options to up your retirement savings and supplement your social security benefits.
We’ve compiled a list of the Best High-Yield Savings Accounts of 2024 so you can have a streamlined look at what high-yield savings account is best for your savings to grow over time.
Cut expenses now to invest for your future
"We need to really educate our citizens about the need for savings," said Fink — though not via vanilla bank accounts. Investing, he stressed, allows people to take advantage of capital markets and compounding.
In the end, how much you get to live on in your retirement determines how you get to live. “My parents lived their final years with dignity and financial freedom,” Fink wrote. “Most people don’t have that chance. But they can.”
By cutting down on essential expenses like home and auto insurance, you can make more room in your monthly budget to contribute to your retirement fund.
With the online platform OfficialHomeInsurance you’ll have access to an array of affordable home insurance options near you.
Similarly, with Bestmoney.com you can browse the best car insurance rates in your area so you know you’re getting the best deal possible. When you fill in some information about yourself, both Official Home Insurance and BestMoney will provide you with a list of available — and affordable — rates so you can trim your spending.
But, there are things you inevitably need to spend on. Luckily with Acorns — an automated investing and saving app — you can make essential spending an opportunity for savings.
All you have to do is sign up, link your bank account to the app and spend as you normally would. Acorns will round up your purchases to the nearest dollar and put the spare change in a smart portfolio.
While Acorns is a great way to partake in hands-off investing, if you want to create a more intentional investing plan, it could be the right time to get in touch with a financial adviser through WiserAdvisor.
WiserAdvisor’s online platform connects you to vetted financial advisors. After providing some information about yourself and your finances, WiserAdvisor matches you with two to three FINRA/SEC registered financial advisors who are best suited to help you with your retirement goals.
