The United States has an average Social Security benefit of $22,884 annually, as reported by the Social Security Administration. However, in certain cities, the average Social Security benefit is significantly lower, approaching or even falling below the poverty level. Seven cities with the lowest mean Social Security benefits are Brownsville, Texas ($14,556), Hialeah, Florida ($14,598), Hartford, Connecticut ($15,220), Pomona, California ($15,509), El Monte, California ($15,586), Paterson, New Jersey ($15,600), and Miami, Florida ($15,749).
To avoid relying too heavily on Social Security benefits, it’s essential to find ways to supplement your income. One way is to delay retirement, allowing you more time to save and invest. Working later in life also qualifies you for catch-up contributions, which can significantly increase your retirement savings.
Another strategy is to put your savings in high-interest savings vehicles, such as SoFi’s high-yield checking account, which offers 0.50% APY on checking balances. By opting for this competitive checking account rate, you can improve your savings while keeping your money accessible. Additionally, you can earn a cash bonus of up to $300 when you set up direct deposit.
High-interest savings accounts can also help jumpstart your retirement savings. You can find great savings options with high APY rates by checking out our list of the Best High Yield Savings Accounts of 2024.
Maintaining the right investment mix is crucial for growing your nest egg. While you don’t want to be too conservative and limit your potential returns, you also don’t want to take on excessive risk. A mix of stocks, bonds, and alternative assets like gold can help you strike the right balance.
Goldco, a precious metals dealer with an A+ rating from the Better Business Bureau, can help you invest in a gold IRA, which combines the tax benefits of an IRA with the inflation-hedging properties of gold.
Finally, take advantage of any help on offer, such as employer matching contributions and tax breaks for retirement investing. The Saver’s Credit, for example, offers up to a $1,000 tax credit for retirement account contributions if your income is below $38,250 as a single filer or $76,500 as a married joint filer in 2024.
If you need personalized financial advice, consider searching for a professional advisor through Zoe Financial. They will match you with vetted financial advisors based on your specific financial needs and goals.
