Social Security Isn't Enough: 3 ETFs That Can Strengthen Your Retirement Plan

"If you earn an average wage during your working years, you can expect Social Security to replace about 40% of it. This assumes that benefit cuts don't happen which, frankly, we can't assume based on the program's current financial situation. But Social Security cuts aside, most retirees need a lot more than 40% of their former paychecks to stay afloat."

"What makes the Schwab U.S. Dividend Equity ETF (SCHD) great for retirees is that it focuses on companies with a strong history of paying dividends. Specifically, it tracks the Dow Jones U.S. Dividend 100 Index, which consists of many established businesses across a range of industries. With SCHD, companies with weaker financials or unstable dividends are filtered out, leading to consistent income."

"The JPMorgan Equity Premium Income ETF (JEPI) invests in established companies within the S&P 500 index. These are all large-cap, established businesses. In addition, JEPI writes call options against its holding to generate income. That income is then shared with investors."

Social Security replaces about 40% of an average wage during working years, leaving many retirees financially stretched if they rely on benefits alone. The program faces financial pressure that could lead to benefit cuts. Most retirees need additional income streams to maintain their standard of living. Exchange-traded funds (ETFs) offer diversified exposure with a single investment and can produce income. The Schwab U.S. Dividend Equity ETF (SCHD) targets companies with strong dividend histories, filters weaker payers, tends to be less volatile, and pays quarterly. The JPMorgan Equity Premium Income ETF (JEPI) invests in large-cap S&P 500 companies and generates income by writing call options.

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