Kevin O’Leary, a prominent entrepreneur and investor from ABC’s Shark Tank, recently shared his perspective on Social Security and retirement planning.

What Happened: O’Leary underscored that Social Security was never meant to be the only income source for retirees. He pointed out that the average monthly payout, approximately $1,900 or about $23,000 per year, is insufficient for a comfortable retirement, reported The Street on Monday.

He recommended employer-sponsored 401(k) plans and traditional IRAs as alternatives, which offer company matching contributions and tax benefits, respectively. Roth IRAs, requiring upfront tax payments, allow for tax-free withdrawals during retirement.

O’Leary also addressed the question of how much money is needed for a comfortable retirement, stating, “you need less than you’d imagine, and panicking helps nothing. The best antidote to panic is realism.”

He suggested that retirees should aim for about 65% of their gross salary at the time they stop working, something he also stated in his book Cold, Hard Truth on Men, Women & Money.

O’Leary emphasized the need for adjusting spending habits and eliminating debt before retirement. “Don't retire until you can afford it,…Throw out your plan for freedom at fifty-five or even sixty-five,” he advised, highlighting the importance of budgeting, disciplined spending, and part-time work if necessary.  

SEE ALSO: Bill Gates Says ‘Luckily’ His Daughter Phoebe Gates Never Asked Him To Back Her Business – Benzinga

• READ MORE: China Breaks Silence On Tariff Impact, Says Trump Policies Are Hurting Its Airlines And Boeing

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.