Nearing Retirement With $250,000? Here’s What to Do Next

Core Insights - The article emphasizes the importance of having a substantial retirement savings to supplement Social Security benefits, which only replace about 40% of pre-retirement income [1][5]. Group 1: Retirement Savings and Income - A retirement portfolio of $250,000 may not be sufficient, as it would yield approximately $10,000 annually at a 4% withdrawal rate [4][5]. - When combined with the average Social Security benefit of $2,015 per month in 2026, the total annual income would be around $34,180, which may not meet the financial needs of retirees [5][8]. Group 2: Exploring Additional Income Sources - Retirees should consider other income sources, such as home equity, which can be tapped into by selling a home and moving to a less expensive location [7]. - Working longer can enhance Social Security benefits and provide opportunities for additional savings, thereby improving financial security in retirement [8].