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Are you losing your retirement savings? 3 Ways To Earn More Income | Smart change: personal finance

(Maurie Backman)

A lot of people retire thinking they are doing very well in the savings department, only to be disappointed. And that’s a stark reality to face once you’ve actually brought out your workforce.

It’s easy enough to look at a big 401 (k) or IRA balance and think, “Great, I’m ready,” only to realize after the fact that that money has to last somewhere between 20 and 30 years. And so a nest egg of $ 500,000 may seem like more than enough – until you look at the numbers and realize that if you stick to a 4% annual withdrawal rate, you will only be left with $ 20,000 in cash. income.

But fear not, if you’ve entered retirement and your nest egg is a disappointment, there are other steps you can take to increase your income. Here are a few that are worth exploring.

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1. Delay your social security declaration

Some people claim Social Security upon retirement. But if you’ve left the workforce and haven’t yet applied for benefits, you might want to wait, work part-time to raise money for about a year, and then register later. .

You are entitled to your full Social Security benefit based on your personal salary history when you reach full retirement age, which is 66, 67 or somewhere in between, depending on your date of birth. For each year that you delay your declaration beyond the full retirement age until age 70, your monthly benefit is increased by 8%, for life. And so, if you are able to delay submitting your benefit claim, you can make up for a nest egg you lack.

2. Keep working

We have just talked about working for a little while during retirement to allow social security to be shifted. But if you’re willing to work as long as you can, even if it’s just a few hours a week, it could increase your income significantly.

Of course, as a retiree you may only have a limited amount of energy for things like commuting and running in a busy retail store or office. But your job doesn’t have to look like this.

Nowadays, a lot of part-time jobs can be done from home, from data entry to writing to telemarketing. Think about what you want to be, and consider keeping a job for as long as you can. Not only will the extra income help you, but this job will also give you a way to stay busy without having to spend any money.

3. Use your home to your advantage

Whether or not your home is paid off in time for retirement, there’s a good chance you have good equity. This is especially true in today’s housing market, with home values ​​rising across the board.

If your nest egg isn’t earning you as much income as you thought, you can make up for it by selling your home and buying a smaller, cheaper one. Or, you can stay in your house if that’s what you prefer, but consider renting out some of it.

You don’t want to share your living space with a tenant permanently? It’s understandable. If this is the case, consider renting your accommodation while you are away. If you are anywhere near a beach, a popular theme park, or a ski resort, you could have a lot of success listing your home for short term rental.

You may have done your best to put money aside in a retirement plan year after year. But if the amount of savings you have is not enough, delaying Social Security, working part-time and downsizing, or renting your house could help make up for this fact and help you consolidate your finances during your retirement years. retirement. .

The $ 16,728 Social Security bonus that most retirees completely ignore

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