How to Stabilize Your Retirement With Little Savings. When it comes time to retire, the hope is that you’ll have enough to do so comfortably. The unfortunate reality for an increasing number of retirees is that there’s an increasingly high chance that you’ll outlive your savings. If you’re starting your retirement and are already concerned with how little you have, there are some things you can do to help stabilize yourself financially.
Delay Social Security
You’ve been paying into social security for pretty much your entire working life, right? Doesn’t that mean that when you retire it’s time for you to start taking advantage of the social security system? If you don’t have much in the way of savings, you might be better off delaying when you start receiving social security benefits. According to Kiplinger, you can increase the amount you receive by 8% for each full year you delay receiving benefits until age 70. You might end up needing to delay your retirement, but the extra years of income and the increase in your benefits could be worth it.
Sell Your Home
Retirees who are concerned about making their money stretch further may be served by selling their home. That allows you to buy a smaller, more affordable home, move to an area with a lower cost of living, or even both. Decreasing your living expenses is a sure way to free up your savings so they go farther. If that’s something you choose to do, make sure you take the time to do it right. According to Lepic-Kroeger Realtors, you need local market knowledge to get the right price for your home. It will take work, but the extra money you could get as a result should make the effort worthwhile.
Budget Carefully
No matter what other cost-saving or money-building strategies you employ, it’s important to budget your expenses carefully. If you choose to travel, consider doing so during the off-season to take advantage of lower rates. Make sure you include plans for healthcare costs. According to Dechtman Wealth Management, the average retiree spends $4,300 per year on healthcare. Chances are high that those costs will increase as you age. Take measures to maintain your health as much as possible and make plans for how to handle those costs moving forward.
If you don’t have as much as you would like in the way of retirement savings, there are some things you can do to stabilize your finances. Consider delaying when you start receiving social security or selling your home. Above all, make sure you’re careful with your budget. It may not be the easiest route to go, but you can still make a good retirement for yourself.
Read this next: Tips For Making Your Retirement Income Go Further
