Too Late to Retire? There’s Still Hope

According to a Wall Street Journal article, 29% of retirees have nothing saved.  One third have at least $50,000 saved, and the rest must fall into the “under $50,000 saved” category.  For the majority of Americans heading into retirement age, this means the best option left is to keep working.

The Journal also explained that $50,000 comes out to an annuity of just $4,000 per year for a 65-year old man.  That’s not much.  So what can you do if you’re nearing retirement, and have nothing saved?

1. One solution according to this article, is to delay your retirement, because you just need time to save, for the savings to grow, and to not have to spend the savings.

2. The second thing is to move to a cheaper area.  By reducing your cost of living, you can get some extra surplus to live more frugally.  By moving to a cheaper city, you can save not only on your housing, but also groceries, utilities, and many other necessities.

3. If the above two aren’t an option, or don’t bring enough money, consider a reverse mortgage.  This is when you borrow against the equity in your home, so that you get payments (or a lump sum) to help with living expenses.  Reverse mortgages do not have to be repaid during your lifetime, so you won’t have this loan as an additional financial worry.

4. Lastly, start saving.  While many people work past age 65, they still don’t save much.  The whole point of stalling for more time is to start saving.

Related posts:

1. Does someone you know need a reverse mortgage? ...
2. 4 Ways to Prepare Your Finances ...
3. Reverse Mortgages: After the Life of the Loan, How is a Reverse Mortgage Paid Back? ...

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