If you retire on just Social Security today, you may be looking at a monthly benefit of $2,071 on average. That’s the typical retiree benefit today, and it accounts for the 2.8% cost-of-living adjustment Social Security got in 2026.
On an annual basis, that amounts to almost $25,000 in Social Security. And while that’s not a small amount of money, it’s also not a particularly large sum to live on.
That’s why you should really aim to have Social Security comprise a portion of your retirement income — not all of it. If you set yourself up with the right investments on top of Social Security, though, you may find that you’re able to live quite comfortably. And in that regard, there’s one specific high-yield ETF you may want to look at.
When it comes to generating investment income in retirement, you have choices. You could maintain a portfolio of different stocks. But that requires you to keep tabs on those companies individually and rebalance on a regular basis.
The nice thing about investing in ETFs is that you get to own a bunch of different assets with a single investment. ETFs are much easier to manage because you really don’t have to do much, provided you’re happy with the funds you’ve chosen.
With that out of the way, let’s talk about the JPMorgan Equity Premium Income ETF (JEPI) and why it’s a great choice for generating retirement income.
JEPI invests in large-cap U.S. companies within the S&P 500 index. These are all established businesses. And while that doesn’t mean their value won’t fluctuate, it also means you have the relative protection that comes with larger companies.
However, unlike other income ETFs, JEPI doesn’t just hold a large collection of stocks. It also sells call options against its equity holdings that investors pay a premium for. Think of those call options as an extra income stream that you might get to benefit from.
ETFs like JEPI carry risk, so you shouldn’t put your entire portfolio into a single high-yield ETF. It’s a good idea to own different asset classes in retirement — for example, stocks and bonds. And from there, it could pay to own different assets within each class. But within the stock portion of your portfolio, JEPI may be a good choice unless you’re very risk-averse.
Also be aware that JEPI can increase your tax bill if you hold shares of it in a taxable account. That’s because most of JEPI’s income is taxed as ordinary income.
But if you’re looking for a way to generate continuous retirement income without a ton of legwork, then JEPI may be a great choice for supplementing your Social Security checks each month. And yes — JEPI pays investors on a monthly basis. You might appreciate that frequency once you’re no longer working and need income on top of Social Security.
Of course, there are many other income-producing ETFs you can choose for your portfolio. And there’s no need to invest only in JEPI. The point, rather, is that you should consider it as part of your retirement income strategy. You may find that it pays more generously and consistently than many of the other ETFs out there.
For more than a decade, the investing advice aimed at everyday Americans followed a familiar script: automate everything, keep costs low, and don’t touch a thing. And increasingly, investors are realizing that being completely hands-off also means being completely disengaged.
That realization hits like a lightning bolt when you realize not just how much better your returns could be, but that there are amazing offers like one app where new self-directed investing accounts funded with as little as $50 can receive stock worth up to $1,000.
Take back your investing and start earning real returns, your way.
