I'm a Retirement Planner: 5 Best Money Tips for Supplementing Social Security

Yahoo

30-07-2025

Retiring comfortably often means getting creative with your income sources. If you're counting on Social Security, for many retirees that alone is not enough income to live on.
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But how does one go about supplementing Social Security? Certified financial planner Christopher Stroup, owner of Silicon Beach Financial, offered some strategies for diversifying income streams, creating tax-efficient strategies and looking at other ways to bring in income.
Delay Social Security
If you're thinking of taking Social Security benefits as soon as you can, it may behoove you to delay them, Stroup said, to maximize the benefits you are entitled to.
Stroup pointed out that delaying Social Security can boost lifetime benefits by 24% to 32%, making it a powerful long-term strategy.
'To bridge the gap, retirees can tap brokerage accounts, part-time work or laddered CDs. Ideally, leverage sources that avoid triggering early IRA withdrawals or higher tax brackets prematurely.'
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Maintain Part-Time or Freelance Work
In combination with delaying Social Security, retirees can continue working part time while using high-yield savings or CDs for short-term income, Stroup suggested. You can also tap into home equity (via downsizing or a reverse mortgage) to stretch limited savings. 'A tailored plan can help prioritize predictable, low-risk income sources without sacrificing future stability,' Stroup said.
Even modest income from freelance consulting, tutoring or remote support roles can reduce withdrawal pressure on retirement accounts, Stroup said. 'We often help retirees match their skills to flexible, low-stress work that keeps them socially engaged and financially confident without disrupting their lifestyle.'
Set Up Investment Income
If you've got the time to make investments for some years prior to retirement, look into setting up 'predictable cash flows like bond ladders or qualified dividend income to cover essential expenses,' Stroup urged. Then, let growth assets ride for longer-term needs.
This 'income floor + growth cushion' approach adds both stability and resilience, he explained, particularly for tech-savvy retirees who want flexibility without excess risk.
On the topic of risk, he reminded retirees that 'the goal isn't to eliminate risk, it's to align it with purpose.' In his practice, they help clients separate assets by time horizon, with safer investments for near-term needs and growth-oriented assets for later years.
'This barbell strategy creates peace of mind and guards against inflation without overexposure to volatility.'
Take Advantage of Tax Credits and State Programs
Depending on your income level and circumstances, there may also be tax credits such as the saver's credit, energy efficiency tax credits or Medicare Savings Programs that you qualify for, Stroup said.
Look into state-level benefits, as well, such as property tax relief or utility subsidies.
Consider a Strategic Roth Conversion
Lastly, Stroup said that many retirees overlook the power of strategic Roth conversions early in retirement. While this strategy may not work for every retiree, this timing can be 'a prime window' to convert taxable dollars at reduced rates, which cuts future tax bills and increases flexibility later, he said. 'It's one of our favorite proactive planning tools.'
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This article originally appeared on GOBankingRates.com: I'm a Retirement Planner: 5 Best Money Tips for Supplementing Social Security