Many Americans fail to substantially save for retirement, assuming that Social Security will be there when they’re ready to stop working. While Social Security is a vital program that provides some support for retired workers, relying solely on these benefits is a costly mistake that can leave you without the resources to live out your golden years. Social Security is not intended to fully replace your income, which is why you should work with a financial advisor to adopt a comprehensive investment plan.

Why Can’t You Rely on Social Security?

Limited Benefits

Many people could handle a small reduction in income without making major sacrifices, but could you live on less than half of your current paycheck? For most retirees, Social Security will only make up about 40% of your current income, with average benefits of just $1,471 per month. Even if you work until the maximum age of 69, Social Security likely won’t be enough to cover your necessary living expenses.

Uncertainty in the Program

To address persistent funding shortfalls, Congress could further limit benefits or raise the retirement age, making your retirement even more precarious. While every investment carries some degree of risk, Social Security is uniquely vulnerable to political trends and policy decisions, potentially making it more uncertain than stocks and bonds.

The Benefits of Investing

Your company’s 401(k) and Social Security should be parts of your investment plan, but your own investments will likely provide the bulk of your retirement revenue. Those who start early and pursue a proven long-term strategy can actually increase their wealth, potentially earning more in retirement than they did during their working years. While there is no guarantee of success, your own investments are the best route to the retirement you’ve always dreamed of.

For a decade, the trusted financial advisors at Headwaters Investment Counsel, LLC have provided detailed guidance to investors from across the country. Their team in Kirtland, OH, thoroughly researches every holding and encourages individuals to pursue an aggressive strategy that maximizes growth over time. Visit their website to learn more about their unique approach to investments, or call (440) 399-3359 to speak with a financial advisor today.