Friday, February 7, 2025

Will I Have Enough?

Many retirees worry they will run out of money. Here are some ways to ensure you won’t

Although it’s stressful to approach retirement without enough savings, there are steps you can take to improve your financial outlook before and during retirement.

6 Tips If You Think Your Retirement Savings May Not Be Enough

Delay retirement. By working a few more years, you can continue earning an income while also giving your savings more time to grow. Working longer also means fewer years relying on savings, easing the financial burden in two ways. If continuing full-time work isn’t possible, consider part-time or freelance work in your field.

Downsize or adjust your lifestyle. Consider moving to a smaller home or relocating to a less expensive area to lower housing costs and potentially access equity. This strategy can make a considerable impact on your retirement budget. In addition, review your spending and cut nonessential expenses. Look for areas like dining out, entertainment, or travel where you can scale back to reduce your overall costs.

Start a small side business. Consider turning a hobby, skill, or expertise into a revenue stream. This could include consulting in your field, selling handmade products, tutoring, or providing freelance services online. Many retirees find this fulfilling as it helps maintain social connections and intellectual engagement while boosting financial security.

Boost your income with alternative options. If you have extra space in your home, consider renting out a part of your property. This can provide a consistent income with minimal effort. Alternatively, selling items you no longer need can help generate extra cash. Many retirees find that downsizing gives them the opportunity to sell furniture, collectibles, or other valuable items they no longer use.

Reevaluate investments. Take a close look at your investment portfolio, and make sure it aligns with your goals and risk tolerance as you approach retirement. As you get older, reducing risk may become more important, and you may want to focus on more stable, income-generating investments like bonds or dividend-paying stocks.

Have a retirement plan. Ensure you have a comprehensive retirement plan that includes a postretirement budget. Many people fail to realize that while some expenses, such as healthcare, may increase, others, like commuting, work-related costs, and even saving for retirement, will decrease. A postretirement budget will help you understand your true financial needs and work toward realistic goals. Consult with an independent financial advisor to help you develop a retirement plan and create a more secure financial future.

Will I Have Enough?

You might be interested in