I Have a Specific Plan for My Social Security Retirement Checks. Here's What It Looks Like

Paying Social Security taxes on my income isn't something I particularly enjoy doing. But I realize that it's a necessary thing, because the money to fund the program has to come from somewhere. And the good news is that by paying into the system, I'm setting myself up to be eligible for Social Security retirement benefits.

There are millions of retirees today who collect a monthly Social Security check. And for many people in that boat, that income is crucial. Without Social Security, a lot of older Americans would not be able to pay for housing, food, healthcare, and other essential costs.

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I, however, hope to not have to use my Social Security benefits for those purposes. I have a very different plan for my Social Security retirement checks. And you may want to adopt a similar plan for yourself.

How I plan to spend my Social Security benefits

My plan for Social Security in retirement is simple. I'm hoping to use that money to pay for things like leisure and hobbies.

Granted, some of my favorite hobbies are pretty inexpensive -- think hiking, reading, and creating various baked goods in my kitchen. But I also like to take road trips to find new hiking trails. And sometimes, I'll splurge on nicer ingredients to take my baked concoctions to the next level. So it should be very helpful to have monthly benefits that are earmarked for expenses like these.

Now given the number of retirees who have to use their monthly Social Security benefits to cover their essential costs, you may be wondering how it is that I can be making these plans. The reason is simple.

I'm working very hard to save for retirement so that my nest egg is able to cover my essential bills. Each month, I have money go into my 401(k) plan automatically. And if I'm able to save beyond what my 401(k) allows for, I put the money into a taxable brokerage account and invest it.

One nice thing about being self-employed is that I'm eligible to contribute to a solo 401(k), which comes with more generous annual contribution limits than a traditional 401(k). I also base my monthly household budget on my lowest monthly income. Since my earnings fluctuate, this means that if I have a good month incomewise, I can put the extra money into savings.

You may want to follow my lead

I want to be very clear that I'm adopting the above strategy for my Social Security benefits not because I think the program is going away, but because it sits well with me mentally. I like the idea of being able to fund my own retirement, and having the option to look at Social Security as extra income.

Also, while I'm not worried about Social Security disappearing completely, I can't gloss over the fact that future benefit cuts are a possibility. I'm not saying they're destined to happen, and I'm encouraged by the fact that lawmakers have never let Social Security cut benefits in the past. But I have to acknowledge that I may not get my benefits in full.

For all of these reasons, saving to cover my essential retirement expenses is empowering. And it allows me to think about retirement with more confidence.

That's why I'd encourage all retirement savers to boost their IRA or 401(k) contributions, and aim to use Social Security as extra money later in life. We don't know exactly what the program's future looks like. But knowing you've saved enough money to cover your essential needs is a good feeling. And so is getting a monthly check you know you can spend any way you want to.

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