Did you know that a worker has about a 30% change of suffering disability before reaching their retirement age? More than 8 million people rely on Social Security Disability Insurance benefits because they are unable to work. However, the average monthly benefit is less than $1,100 given the current state of cost of living adjustments. (1)
Resources That You Should Have If To Supplement Your Disability Income
If you are one of those people who are young and in the workforce, you should have some assets built up so that you can supplement your disability income. Here is how people without any assets set aside for disability tend to get by before they get their disability income:
- Friends or family providing support
- Spouse’s income
- Government assistance
- Sale of personal items
- Personal savings
- 401(k), IRA or other retirement savings
- Credit cards or Home equity line of credit
- Private charitable assistance
Credit cards and sale of personal items are not an ideal way to get by. Even with your social security benefits, you income will be less than $1,100 per month in most situations. Here are some ways that you can put cash equity aside to supplement disability income;
- Consider long-term disability insurance and get it if your employer offers it.
- Save at least 15% of your income in a general fund so that it can supplement your disability check from the government down the road should this ever happen.
Most importantly, consider a diversified stock portfolio. Stocks, by and far, have the best ability to keep up with inflation and are one of the only investments that outpaces inflation. Contact us today to learn more about financial planning to help you live with assets to supplement disability income from government sources like social security.
(1) Source: https://www.census.gov