a hand holding a stopwatch

Media / Blog

Ensuring a Secure Retirement: Strategies to Supplement Social Security


Expert Tips on How to Prepare for and Save on Your International Travel Plans

May 12, 2024

Crafting wise financial plans for retirement is imperative for ensuring comfortability in your golden years. These plans are particularly crucial if you anticipate leaning heavily on Social Security benefits and lack considerable retirement savings to fall back on. Luckily, there are strategies you can follow to live frugally and maximize your current resources, paving the way for your future exit from the workforce.

Live Below Your Means: A Universal Principle

The importance of living within one's means is a fundamental principle for financial well-being. It's a simple and imperative truth. Trimming unnecessary expenses from daily routines, i.e. cutting back on luxuries like dining out or subscription services, can free up resources for retirement savings. By maintaining a gap between earnings and expenses, individuals can accelerate progress towards whatever life goals you may have, whether it's homeownership, global travel, education funding, or early retirement.

Prioritize Savings

By saving a portion of your income upfront, you can alleviate financial stress about what you spend off the bottom. Then, rank your savings goals and weigh the pros and cons of each item. Do you have an emergency fund? Not sure that you can set aside enough money for a child's education and your own retirement? Then, one might need to take priority over the other, especially if one of them could be harmful (now or in the future) if deferred.

Eliminate Debt Burdens

High-interest debt and interest payments can erode your retirement savings over time. Interest payments can eat into your retirement funds. Paying off obligations like credit card balances, mortgages, and student loans free up additional funds for retirement savings.

Maximizing Employer & Catch Up Contributions

Maximizing employer-matched contributions to retirement accounts such as 401(k)s is a prudent strategy which can result in increasing your savings immediately and potential for greater returns in the long run, thanks to the rule of compounding. Failing to capitalize on this benefit means leaving money on the table, hindering retirement savings potential. Capitalizing on catch-up contributions for retirement accounts is advantageous for individuals aged 50 and above. These provisions enable accelerated savings growth, boosting retirement nest eggs.

Invest Strategically

Take a proactive approach to investing by developing a well-diversified investment portfolio tailored to your risk tolerance and financial goals. Consider working with a reputable financial advisor who can help you craft a personalized investment strategy designed to optimize returns while minimizing risk. By investing wisely, you can maximize the growth potential of your retirement savings and achieve your long-term financial objectives.

Optimizing Housing Expenditure

Downsizing or relocating to areas with lower living costs can significantly bolster retirement savings. States with favorable tax policies on Social Security benefits could amplify your retirement income but make sure you're aware of what moving out of your state could mean. Although daunting, such decisions can expedite financial goals and ensure long-term security.

Explore Alternative Income Streams

In addition to traditional retirement accounts, consider exploring alternative income streams to supplement your Social Security benefits. This could include rental income from investment properties, dividend-paying stocks, or freelance work in your spare time. Diversifying your income sources can provide an additional layer of financial security in your golden years.

Research Eligible Benefits

Exploring government assistance programs like Supplemental Security Income or subsidized housing can alleviate financial strain during retirement. Assessing eligibility for such programs is prudent.

Plan for Unforeseen Expenses

One of the biggest expenses in retirement is healthcare and allocating funds for these unexpected is often overlooked. Preparing for healthcare contingencies, including long-term care, medical and disability expenses is essential for your future financial security.

Take steps to prepare for potential medical expenses by exploring healthcare insurance options, including Medicare supplemental plans and long-term care insurance.

Stay Informed and Adaptive

The landscape of retirement planning is constantly evolving, so it's essential to stay informed about changes in tax laws, retirement regulations, and investment strategies. Remain flexible and adaptive in your approach to retirement planning, and be prepared to adjust your strategy as needed to accommodate changing circumstances. By staying proactive and informed, you can navigate the complexities of retirement planning with confidence and achieve your financial goals.

Navigating the complexities of retirement planning demands foresight, discipline, and strategic decision-making. By implementing these proactive strategies and adopting a disciplined approach to retirement planning, you can enhance your financial security and enjoy a fulfilling post-workforce retirement, free from financial worries. Contact us today if you're looking for help on how to make smart money moves for your future!


The Thrill of Digital Treasure Hunting

About the author

Guest Author

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

Investor Disclosures: https://bit.ly/KF-Disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.