Having savings is one of the most important things we can do. It doesn’t matter if you live in the United States or have decided to spend your retirement abroad. Saving and having a Social Security retirement benefit are not two incompatible things, but we can’t put all our trust in it. If you have savings, that’s fine, but if you don’t you must also take into account many other Social Security factors.
Therefore, it is not a good idea to rely entirely on Social Security, as inflation can give us a hard time. The same can happen with your savings. If you have them, the savings may be insufficient in a time when prices can rise sharply and leave you with very little money to spend each month. Sometimes even mixing these two concepts can lead to problems.
Savings, Social Security and work
Fortunately, Social Security retirement is compatible with work. It is also compatible with any savings you have. Therefore, a combination of these three elements is perfect to live a quiet and carefree life. In this way, everything will also depend on your Social Security amount. In addition to this, all the money you have in savings will also be important.
If you retire early, you will have a lower retirement benefit. If you can wait and continue working, this benefit will be higher. Therefore, delaying retirement is always a good start to be able to have enough money every month. At least, to have a larger retirement amount. But, as we have already mentioned, it is not a good idea to have only retirement as a source of income.
Save on a day-to-day basis
If you have a not very high Social Security pension and not very large savings, you can get to work to get more money. Another option is to do a 401(k) or an IRA. The ideal would be to have a high Social Security pension, but not everyone can afford this.
In this regard, since you cannot rely 100% on your Social Security benefit, it is a good idea to have expenses well under control. It may be necessary for you to move to a cheaper place. Also it is good not having unnecessary expenses, so that you can live on your Social Security alone without problems. Otherwise, you can always continue working for a few years.
