A $275,000 portfolio requires a 9% yield to generate $24,852 annually, matching the average Social Security benefit for retired workers.
A $275,000 investment portfolio must yield 9% to produce $24,852 annually, equivalent to the average Social Security check for retired workers in 2026. This target exceeds typical dividend yields, pushing retirees toward higher-risk strategies like covered-call funds.
The average Social Security benefit rose 2.8% in 2026, reaching $2,071 monthly or $24,852 annually. Traditional dividend-growth funds, such as Schwab U.S. Dividend Equity ETF (SCHD), yield 3.5%-4%, requiring portfolios of $621,000-$710,000 to match the same income.
Covered-call funds like JPMorgan Equity Premium Income (JEPI) currently offer 9% yields but lack growth potential, as distributions remain flat while growth dividends compound over time.