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    • Here’s How to Spend Your Social Security Checks
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    Here’s How to Spend Your Social Security Checks

    Umito Posted on

    Charlene Rhinehart
    | The motley fool

    Millions of retirees rely on Social Security to survive during retirement. It’s a helpful boost, but Social Security was never meant to be your one-stop shop for income. It was designed to be part of a “three-legged stool” alongside pensions and personal savings.

    But times have changed. Pensions are disappearing and savings are often insufficient. In fact, 28% of retirees rely solely on Social Security, according to one study. Motley Fool Investigation.

    The idea of ​​being entirely dependent on Social Security doesn’t suit me. That’s why I’m now taking control by setting up retirement accounts and creating passive income streams. By doing this, I will have many options on how I want to spend these Social Security checks when the time comes.

    My Social Security game plan

    It’s difficult to predict exactly how much Social Security I will receive when I retire. A lot depends on factors like when I decide to file for benefits and what my highest 35 earning years look like. As I am still several decades away from full retirement age and have not yet reached my peak earning years, my future Social security benefit the amount is far from being set in stone.

    That said, I’m not flying blind. I like to keep track of my estimated benefits by checking my Social Security statement each year. If you have not already done so, you can create an account at www.ssa.gov to view your personalized statement. Remember, these numbers are based on the system as it works today. The situation could be completely different in 20 to 30 years.

    This is why I am not counting on Social Security to support the burden of my retirement. With news that Social Security trust funds could be depleted by 2035 and potential benefit cuts on the horizon, I’m focused on building my own financial safety net.

    My goal is to use Social Security as fun money for hobbies, family experiences, or to give back. But if it makes sense, I wouldn’t mind using it to pay some bills and letting my other money continue to grow in investments. Either way, I plan to have options and won’t be forced to use Social Security to keep the lights on.

    Social Security will be the icing on the cake

    To be clear, I am not rejecting Social Security. Of course, the program faces financial challenges and lower benefits for retirees could be a possibility. But I save and invest like Social Security doesn’t exist, because I’d rather have extra money than struggle to get it in retirement.

    To me, Social Security is like a sweet bonus at the end of the rainbow. I am now working to enjoy a meaningful life today and prepare for a comfortable retirement, even when I no longer work as much. With thoughtful planning, Social Security will simply be sprinkled on a delicious ice cream sundae in retirement.

    Over the course of a four-decade career (with a few sabbaticals along the way), I take intentional steps to ensure my retirement plan meets my needs. Here’s what’s on my checklist:

    Bottom line: I’m topping up my retirement account now so I have options later. I want the freedom to use my Social Security checks as I see fit – whether that’s signing up for dance classes, supporting causes I care about, spending quality time with family or even pay a few bills while letting my investments grow. The key is having a clear vision for my retirement and multiple sources of income to make that vision a reality.

    The Motley Fool has a disclosure policy.

    The Motley Fool is a content partner of USA TODAY providing financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY.

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    Umito
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