Retirement Funding Conundrums Affect Many Americans
At 65, relying solely on Social Security for retirement funding may not provide enough income to cover expenses. Even with a $120,000 nest egg and a $1,700 monthly Social Security check, retirees face significant financial gaps. The 4% rule, which aims to ensure a 30-year sustainability period, only yields approximately $2,000 per year, leaving most retirees short of their monthly expenses.
- For those who rely on Social Security for retirement, having a supplemental income stream, such as part-time work or tapping into home equity, is crucial to bridging the financial gap and ensuring a secure retirement.
- How can policymakers create more accessible and affordable solutions for Americans struggling with inadequate retirement funding, particularly in light of rising living costs and life expectancies?