The idea that we will all have to work for many more years than we anticipate to fund retirement is prevalent in the media today. If the thought of working for many more years is disappointing, there is nothing that says you can’t find other solutions to a retirement cash crunch. It’s possible to make your savings last through retirement without working longer.
The New York Times offers “6 Strategies to Extend Savings Without Working Longer.”
Live on Less. If you are already tired of working, as noted above, you may feel like you want to indulge but you should proceed with caution. If you are still healthy, you can try living on less and saving more for when you are older and may not have the kind of health or energy you have now.
Make the most of Social Security. Starting to receive Social Security benefits as soon as possible may not be the best option for you.
Lower your tax bill. If you are already in a lower tax bracket because of retirement, one possible way to lower your taxes more is to convert a traditional IRA to a Roth IRA.
Consider a reverse mortgage. According to the article, conventional wisdom on reverse mortgages is changing now that retirees are living longer. Reverse mortgages are not thought of as a last resort and depending on your situation can have advantages over a home equity line of credit.
Get an Annuity. With an annuity, “you give money to an insurer in exchange for a guaranteed stream of income that starts immediately or at some future date.”
Do a lot of downsizing. A couple mentioned in the article chose to retire overseas to a country where their money would go further than in the U.S. Others downsize locally by finding a less expensive (and usually smaller) place to live. The idea is to spend less on housing and home maintenance in order to free up money.
This advice is worth considering but remember you can work with a Fee-Only financial planner to implement the retirement savings strategies that will work best for your particular situation.