In a recent survey, it was estimated that nearly 50 percent of future retirees have little to no excess money set aside for their retirement.
If you are nearing the sixth decade of your life and are without savings, it may be time to buckle down and start saving. Like with most scenarios in life, the sooner, the better. One money expert, Kimmie Greene, tells us we should have seven times our annual salary saved by age 60. Does your savings account match this figure? Probably not. But don’t fret. Here are a few ways you can boost your savings, even if you’re off to a late start.
No early retirement.
It is nearly impossible to live off Social Security alone. If you do not have sufficient funds in your savings account to make up for the lack of income, it seems you are not yet ready to retire. Did you know that each year you put off benefits past retirement age your monthly social security check will go up by 8 percent until this incentive expires at age 70?
Learn to be frugal with your money. Eating cheaper food, choosing less expensive entertainment, even moving to a smaller space will significantly affect your savings. Set a monthly goal of a figure you want to save by the time the end of the month arrives—you may even find this method can start to be fun.
Find part-time work.
Maybe working full-time until you turn 70 is not an option for you. Consider part time. Twenty hours a week combined with Social Security checks may be your answer to getting by.
Use your resources.
If working is out of the question for you completely and you own a home, you have not yet run out of hope. Many retirees have sold or rented their property for income. This is especially ideal if your home has an extra unattached living space or mother-in-law suite for you to live in as you rent the larger portion of your home out to tenants. This stream of income should cover a major expense, making it easier to get by on Social Security.
When you turn 62 years of age, you qualify for something called a reverse mortgage. This term refers to one version of a loan where you renounce the equity in your home in exchange for monthly checks from the bank made out to your name. The downfall? This would completely write off the future option of a home equity loan.