We are just a few days away from the first Social Security payments of 2025. The average retiree will notice an increase of $49 compared to last month, raising the average payment to $1,976 per month. Some beneficiaries may enjoy even larger hikes, with top earners receiving as much as $5,108 each month.

However, many will discover that these funds don’t stretch as far as they had hoped. Costs from Medicare Part B premiums and taxes on Social Security benefits can significantly reduce what seniors actually receive, and while inflation has moderated, it remains a concern.

To maintain a comfortable lifestyle in retirement, it’s advisable to have additional income sources that can support your Social Security benefits. Here are four options to think about.

1. Personal Savings

Personal savings serve as a prime supplement to Social Security since you fully control these funds. If you’ve contributed to a Roth account, tax-free withdrawals may be available, allowing you access to funds without increasing your tax burden during retirement.

If you’re still in the workforce, it’s generally recommended to save around 10% to 15% of your income for retirement. But if that seems too much, even saving a smaller percentage is acceptable. You can aim to increase that amount later, especially if you get a salary boost or your expenses decrease.

For those who are retired already, saving more into retirement accounts might not be feasible. Instead, focus on selecting investments that maximize your returns while minimizing risks. A balanced approach is crucial, particularly if you’re near or at retirement.

A common guideline suggests subtracting your age from 110 to determine the percentage of your portfolio to allocate to stocks, with the rest dedicated to bonds. Opt for low-fee investments, like index funds, for the stock portion to help retain more of your earnings.

2. Part-Time Employment

For some, working during retirement isn’t an appealing option, but a part-time job can provide much-needed financial support if personal savings are limited. You may not need as much money as you did when working since you’ll receive Social Security, and your expenses may naturally decline with age. This flexibility allows you to take on work that matches your interests and schedule.

If you own property, renting it out could provide a relatively passive income stream. Just be sure you’re ready for the responsibilities and expenses that come with being a landlord before going down this path.

3. Reverse Mortgage

Seniors with significant equity in their homes might consider a reverse mortgage. This option allows you to borrow against your home’s equity, and you aren’t required to make payments as long as you live in the house. The amount available to borrow is contingent on your equity and prevailing interest rates, and you can opt to receive funds as a lump sum, in installments, or as a line of credit used as needed.

Eligibility for a reverse mortgage typically requires homeowners to be at least 62 years old and possess a minimum of 50% equity in their homes. There are also closing costs and ongoing fees, and you’ll still need to manage property upkeep along with property taxes and insurance premiums.

This option can be beneficial for those who have few other assets apart from their residence. However, it may not be advisable if you plan to leave the property to your heirs, as the loan must be repaid after your passing or when you move out, which could diminish what your heirs inherit.

4. Additional Government Benefits

Low-income seniors might qualify for various government assistance programs that can help with essential living costs. For instance, the Supplemental Nutrition Assistance Program (SNAP) can assist with grocery expenses, while Medicaid helps cover some medical costs not addressed by Medicare.

You might also be eligible for Supplemental Security Income (SSI), a monthly benefit akin to Social Security, available to individuals who are blind, disabled, or low-income seniors. The federal limit is $967 monthly for an individual and $1,450 for a couple, though the exact amount you qualify for will depend on your income and assets, as well as your state of residence, where additional state-level support may be available.

Each government program has specific eligibility criteria that may change over time, so it’s important to review these details thoroughly before applying. If you’re unsure about your eligibility, reach out to the respective program for more information.

While not all of these income sources might interest you, even one can greatly enhance your financial security. Maximizing these options can provide a much-needed cushion in your retirement years.

Ultimately, the more options you have, the better. Just be sure to comprehend the implications of each decision before proceeding.

The Motley Fool adheres to a disclosure policy.

The Motley Fool collaborates with YSL News to provide financial news, insights, and opinions aimed at empowering individuals to manage their finances effectively. The content is produced independently from YSL News.

The $22,924 Social Security bonus that many retirees miss out on

Exclusive Offer from The Motley Fool: If you are like the majority of Americans, you may find yourself behind in your retirement savings by several years or more. However, there are a few lesser-known “Social Security secrets” that could potentially enhance your retirement income. For instance, one straightforward tactic might allow you to collect as much as $22,924 more each year! Once you understand how to make the most of your Social Security benefits, we believe you can approach retirement with confidence and peace of mind.