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Five Ways to Supplement Your Social Security During Retirement

Date : December 13,2013
By : Kandace Heller

Retirement should be a time for family, relaxation and focusing on personal growth. It should not be a time for stress and financial hardship. If your social security check isn’t enough to continue your current standard of living, there are ways to obtain additional income to supplement your social security check. Below are five ways how.

1. Retirement Savings Accounts

Of course, you should try to save for your retirement independent of what you pay into social security. There are a number of different kinds of savings account instruments you can use that have good tax advantages. One is an Individual Retirement Account or IRA for short. You can contribute as much as $4,000 a year to an IRA. Income taxes do not have to be applied to the funds until they’re taken out during retirement.

2. Employer Pensions

Another common method is obtaining an employer pension. In recent decades, lessened job security and employer benefits have made pensions less common. However, certain people in certain fields can still obtain a pension. This should certainly be considered when choosing long term employment.

3. Continued Employment

Many seniors still work to supplement their social security income. This may seem like a rather self-defeating option. However, there is the old adage that if you love what you do, you will never work a day in your life. Some jobs are also rather relaxing and stress free in general. Running a laid back antique store, for example, is a lot less stressful than a high pressure sales environment. You’ll want to do your research before accepting any new employment. In certain circumstances, depending on your age and how much extra income you are making, the government may knock a certain amount off your monthly check.

4. Stocks and Bonds

While combining money and markets may seem like a risky choice to some, many people live a very comfortable retirement thanks to investing wisely. The key is creating a balanced portfolio. There may still be risk involved, but not placing all your chips on the same horse is a way to balance out most of the turbulence of the market.

5. Real Estate Investment

Another investment choice is real estate. You can do this directly or even through a 401k plan. Overall, knowledge of an area is important. You need to be able to predict whether there will be both population and financial growth in a certain area. You can only do that through proper independent research. If you know a neighborhood rather well, that can certainly help as well. Weigh your options before making this decision, if you are already living on a tight budget and aren’t sure whether you will be able to rent the property for more than your monthly mortgage, this probably isn’t the best option for you.

There are a number of different options to supplementing your social security income during retirement. Many people want to continue their standard of living and even add to it with vacations and fun during retirement. You don’t have to limit your lifestyle to what’s on your social security check. There are many options to supplementing your income. However, all of them require work and pro-action. Don’t wait until it’s too late.