If you’re nearing or in retirement and worried you won’t have enough income to support the lifestyle you want, you’re not alone – and there’s still hope.
According to the Employee Benefit Research Institute’s March 2010 annual retirement survey, 29% of retirees have saved nothing to support themselves, while only a third have saved at least $50,000. And the situation is no better for those who are still working.
Following are some steps you can take to save for your retirement:
1. Delay your retirement or get a part-time job if you’re retired: This gives you extra years of income to save, gives your savings extra time to grow, and reduces the time your savings will need to last you in retirement.
2. Consider more aggressive options: If you’re invested in bonds, you may want to allocate some of your assets to stocks.
3. Delay taking Social Security payments: The longer you delay, the more you’ll collect.
4. Cut your costs: It’s possible to enjoy a great retirement without spending a fortune. Consider moving to a low-cost city or the suburbs of a higher-cost city.
5. Leave nothing behind: Consider converting your retirement assets into an immediate annuity that generates a monthly income until you die but leaves nothing for your survivors.
6. Consider a reverse mortgage: A reverse mortgage turns the equity in your home into a type of annuity.