Core Insights - Social Security is a reliable income source that can provide increased benefits during inflation and guarantees lifetime payments [1] Strategies to Maximize Benefits - Delaying the claim of Social Security benefits until age 70 can significantly increase monthly payments, as benefits rise each month until that age [2] - Continuing to work and earn a higher income after claiming benefits can also enhance Social Security checks, as benefits are calculated based on the highest 35 earning years [4][6] - The Social Security Administration automatically recalculates benefits based on any higher earnings reported after benefits have been claimed, potentially replacing lower-earning years in the calculation [7]

EmirMemedovski / Getty Images Social Security benefits can supplement your income from retirement savings, but the average check amount varies from person to person and state to state. Key Takeaways The average retired worker received $1,975 in monthly Social Security benefits in 2024. Retirees in Connecticut have the highest monthly Social Security checks, averaging $2,196, while those in Mississippi have the lowest at $1,814. About 69 million Americans collect Social Security, totaling $1.6 trilli ...

Core Insights - Social Security serves as a crucial income source for many retired Americans, especially for those who have not saved adequately for retirement [2] - The timing of filing for Social Security benefits significantly impacts the monthly benefit amount, with various options available for claiming [5][6] - There are 567 different calculations to determine the optimal time to file for Social Security, indicating the complexity of the decision-making process [3] Group 1: Importance of Social Security - Social Security is essential for retirees who lack substantial savings, making it their primary means of covering expenses [2] - The guaranteed lifetime benefits of Social Security provide a level of financial security that personal savings cannot match [2] Group 2: Filing Age and Benefits - The earliest age to claim Social Security is 62, while full retirement age (FRA) is 67 for those born in 1960 or later, with the option to delay benefits until age 70 for increased monthly payments [6] - Filing at 62 results in a monthly benefit of $1,400, while filing at 70 increases it to $2,480, demonstrating the financial impact of filing age [6] - Decisions regarding filing age also affect spousal and survivor benefits, adding another layer of complexity to the decision [7] Group 3: Considerations for Filing - While filing at 70 maximizes monthly benefits, it may not be the best choice for everyone, particularly if life expectancy is shorter, potentially leading to lower total income [8] - There are various combinations of filing ages (e.g., 65, 68) that can also influence the benefit amounts, emphasizing the need for strategic planning [8]

Core Insights - Older Americans are advised to carefully consider the timing of their Social Security benefits, as this decision significantly impacts their monthly income during retirement [2][3] - Social Security provides a guaranteed income for life, unlike personal savings which may deplete over time [3][4] - Annuities are presented as an alternative source of guaranteed income in retirement, functioning as contracts with insurance companies that ensure payments for life [5][7] Summary by Category Social Security - Social Security benefits are crucial for many retirees, serving as either their only or primary source of income [2] - The age at which individuals file for Social Security affects the amount received monthly, making strategic timing essential [2][3] Annuities - Annuities can provide a similar guarantee of lifetime income, addressing the fear of running out of savings [5][6] - There are various types of annuities, including fixed annuities with predictable payments and variable annuities that fluctuate based on market conditions [6][8] - Choosing the right type of annuity depends on individual income needs and risk tolerance, with fixed annuities offering stability and variable annuities presenting potential for higher returns [8]

There's a reason seniors are told to think carefully before signing up for their Social Security benefits. The age at which you file your claim will have a direct impact on the amount of money Social Security pays you each month. Filing for Social Security at full retirement age (FRA) means you'll avoid any sort of reduction to your monthly benefits. FRA is 67 for people born in 1960 or later, but it varies slightly for earlier birth years—check SSA.gov for your exact age. However, you're allowed to claim S ...

Core Insights - The Fidelity Total Bond ETF (FBND) is favored by investors seeking steady monthly payouts with a yield of 4.62% and a focus on stability through investment-grade bonds [1][3] - Investors looking for higher returns can explore Fidelity's high-yield ETFs, which offer yields in the mid-six percent range, providing stronger cash flow despite increased risk [2][4] Fidelity Total Bond ETF - Classified in the intermediate core-plus category, the Fidelity Total Bond ETF prioritizes stability and holds about 80% of its assets in investment-grade bonds [3] - The fund's conservative approach results in a yield comfortably in the 4% range, appealing to income-oriented investors [4] High-Yield Alternatives - The Fidelity Enhanced High Yield ETF (FDHY) offers a yield of 6.59%, doubling that of the Fidelity Total Bond ETF, and is designed for investors willing to take on additional credit risk [5][6] - The Fidelity Sustainable High Yield ETF (FSYD) provides a yield of 6.53% with a focus on sustainability, appealing to investors who prioritize ESG considerations [7] Other Bond ETFs - The Fidelity Limited Term Bond ETF (FLTB) has a yield of 4.31% and is similar in strategy and risk to the Fidelity Total Bond ETF, but with shorter average maturities, making it resilient during rate volatility [9][10] - This ETF pays out an annual dividend of $2.18 and has shown strong dividend growth of around 9.37%, serving as a stabilizing option between conservative and high-yield investments [11]

Sutthiphong Chandaeng / Shutterstock.com The Vanguard High Dividend ETF (NYSE:VYM) is widely considered to be one of the most popular income ETFs available today and for a number of very good reasons. Between its current $3.52 annual dividend payout and low payout ratio, there is every reason to believe that this ETF has the potential to be a cornerstone holding for millions of individual investor portfolios. Quick Read The Vanguard High Dividend ETF pays $3.52 annually with a 2.42% yield but recently ...

Core Insights - Many individuals enter retirement with optimism but later find their income insufficient to cover expenses, largely due to overreliance on Social Security [1] - The average monthly Social Security benefit is slightly over $2,000, and there are concerns about potential future benefit cuts, highlighting the need for a backup income plan [2] Investment Opportunities - **Invesco S&P 500 High Dividend Low Volatility ETF (SPHD)**: This ETF provides access to S&P 500 companies that offer generous dividends with low volatility, making it suitable for retirees seeking steady income [4][5] - **iShares Preferred and Income Securities ETF (PFF)**: PFF holds a diversified portfolio of U.S. preferred shares, offering higher yields than typical dividend ETFs while distributing dividends monthly, though it is heavily weighted in the financial sector [6][7] - **JPMorgan Equity Premium Income ETF (JEPI)**: JEPI invests in large U.S. businesses and utilizes covered calls to generate income, providing a moderate-risk option for retirees focused on predictable income rather than high growth [8][9]

Generating a steady and hefty stream of income is a key factor in any investing strategy. And to reach this goal, many turn to dividend paying stocks. A dividend is a regular payment a company makes to shareholders out of its profits. But it can be difficult and time consuming to analyze and handpick individual dividend paying stocks. That's why many investors seek out dividend paying exchange-traded funds (ETFs). These professionally managed funds invest in a handful of dividend paying stocks, offering ins ...

Core Insights - A significant concern for retirees is the inadequacy of Social Security benefits to cover their expenses, with many relying solely on these benefits [1][2] - The average retired worker receives about $2,000 monthly, translating to an annual income of $24,000, which may not sufficiently cover retirement costs [2][6] - It is crucial for retirees to have savings and an income-generating portfolio, with ETFs being a viable option for this purpose [3] ETF Considerations - When selecting income-producing ETFs, retirees should focus on three key factors: yield, risk tolerance, and expense ratio [7] - The Schwab U.S. Dividend Equity ETF (SCHD) is highlighted for its focus on companies with a history of increasing dividends for over 10 years, making it a lower-risk option [5][8] - The SCHD ETF offers a yield of 3.80% and has a low expense ratio of 0.06%, providing a reasonable return relative to its risk profile [6][9] Additional ETF Option - The Vanguard High Dividend Yield Index Fund ETF is mentioned as another option, yielding 2.39% and focusing on large-cap companies [6]