Retirement is a time for new adventures and spending time with family and friends. It's not a time to panic about your finances. If you're worried about having no retirement savings, there are still many ways to make the most of your golden years:
Meet with an advisor to make a financial plan.
To make your retirement as happy and comfortable as possible, you need a concrete plan that will help guide you toward financial security. An advisor can help you create this plan by helping you set goals and reviewing them on a regular basis to see if they're still working for you.
You'll also want to keep an eye on how much progress you're making toward achieving your goals so that if there are any changes or updates needed in order for them to be effective, they can be made accordingly.
Make the most of your Social Security benefits.
Social Security is a guaranteed income source that's available to everyone. If you're not receiving payments from another source, it's an excellent place to start. Benefits are based on your income history and can be received as early as age 62 or delayed until age 70, so there are many options available to you depending on how long you live and how much money you make now. Social Security can also be a part of a retirement plan: if your spouse has passed away, then their benefit will go straight into your account as well!
Ask your employer about guaranteed income options.
Some employers offer a pension, 401k or 403b plan and 457 plans. You might also be eligible for a TSP (Teachers' Retirement System) or profit sharing plan. Some companies offer health and welfare plans that can include medical benefits into retirement.
Consider downsizing or renting out your home.
If you have a large home and are considering downsizing, renting out a room or two can be a good way to make extra money. If you're up for the challenge of sharing your space with another person or family, this is an easy way to bring in some income each month.
For those who don't want to rent out their whole house, consider offering up one or two spare rooms as short-term rentals. Sites like Airbnb allow people who own properties to rent them out for short periods of time at rates that can be far more expensive than hotel rooms. This is especially useful if you live in an area with high tourism traffic during certain times of the year like ski resorts or national parks.
Consider moving to a less expensive city or country.
If you’re not a wealthy person, or if you have no savings and are still working, it may make sense to consider moving to a less expensive city (or country). The cost of living varies wildly between cities and countries—and even within them! So before making any big decisions about retirement, consider looking into where your money might stretch the furthest.
Keep a close eye on spending, and make cuts where you can.
While there are plenty of things you can do to cut back on spending, here are a few ideas that will help you get started:
- Cut back on discretionary spending. That's anything you spend money on without having to, like going out to dinner with friends or catching a movie every weekend. Ask yourself how much of this type of spending is really necessary—and if it isn't, stop doing it!
- Cut back on non-essential services. These are services you pay for but don't use often enough to justify the cost (or at all). For example, maybe you still have cable TV even though most people stream their shows and movies online these days. Or maybe the utility company has been sending someone out every month to maintain your air conditioner when it only breaks down once per year--but now that we're talking about retiring from work early... why not just turn off A/C in summer months?
Earn extra income in retirement.
While you may not be able to retire on your savings alone, there are ways that you can supplement your income and increase the amount of money that you have available for retirement.
- Earn extra income in retirement. In addition to your Social Security benefits and any other sources of income that you have, it is important to consider how much additional income could potentially be generated by working part-time in retirement.
- Volunteer at a local organization or nonprofit using your skillset (e.g., accounting). You will gain valuable experience while building up knowledge about the organizations or causes that interest you most. This is especially helpful if there is a particular cause or organization that resonates with your values and beliefs because they will provide opportunities for both giving back as well as learning new skills as an employee!
No one wants to retire with no savings, but it’s important to remember that there are many options available to you if you find yourself in this situation. It can be scary and stressful to think about your future without a safety net, but taking the time now to make plans for how you will get by makes life easier later on.
-The NestedFunds Team
