Social Security Won't Be Enough. Load Up on These High-Yield ETFs to Avoid a Retirement Income Shortfall

"But you should know that if you're an average earner, Social Security will only take the place of about 40% of your pre-retirement paycheck. Most seniors need a much larger amount of replacement income to live comfortably, which is why it's important to have access to money outside of those benefits. If you're in the process of building a retirement portfolio, you may want to focus on ETFs, or exchange-traded funds, that generate a high enough yield to supplement your Social Security checks nicely."

"The JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) is similar to JEPI in that it uses a covered call strategy to generate income. However, JEPQ focuses on Nasdaq-100 stocks specifically, giving investors a lot of exposure to tech and growth-oriented businesses. That could be a good or bad thing. JEPQ's strategy could lead to more income and returns, but since Nasdaq stocks can be more volatile, there's more risk involved."

Social Security typically replaces about 40% of an average earner's pre-retirement paycheck, leaving many seniors short of comfortable retirement income. Many retirees need additional replacement income and should access savings or investment income. High-yield ETFs can supplement Social Security by generating ongoing distributions. Covered-call ETFs such as JEPI and JEPQ write options on holdings to collect premiums and boost income; JEPQ focuses on Nasdaq-100 stocks and carries greater volatility. High-dividend ETFs like SPYD allocate to top-yielding S&P 500 companies. NASDAQ covered-call funds such as QYLD similarly use option premiums to raise payouts.

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