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A 5% yield bond ETF may help cover retirement income gaps if Social Security benefits are cut by 2032.

Market News
09 Sep 2026
24/7 Wall Street
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Neutral
A 5% yield bond ETF may help cover retirement income gaps if Social Security benefits are cut by 2032.

Social Security's trust fund is projected to run out by 2032, potentially reducing retirees' benefits and creating an income gap. This shortfall is due to demographic shifts and the program's limited investment options. To supplement future income, retirees might consider tax-advantaged accounts like Roth IRAs. The iShares Flexible Income Active ETF (BINC) offers a 5.3% yield through diversified bond investments, making it a potential core fixed-income holding to help offset reduced Social Security payments.

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