Retirement is supposed to be a time of relaxation when you finally get to do all those things you didn’t have time for before. However, this is hard to do if you’re always worried about your financial situation. During your retirement, you may need to rely on several sources of income in order to fund everything. Here are 6 sources that you may be able to use, which will hopefully give you enough funds to do everything you hope to.
One of the primary sources of income for retirees is social security. As you were working throughout your life, you were paying taxes to help fund social security. Now that you are retired, you can collect payment from this fund every month. The amount you are able to withdraw will vary and you can start collecting this income once you turn 66 or 67, depending on when you were born. To start collecting social security, you should contact your state’s employment office to learn more information. You can also learn more about social security here.
If you planned ahead well enough, you will hopefully have some retirement savings to rely on. Retirement savings, also known as a retirement plan, is money we put away as we are working, that we plan on living off once we retire. Of course, for some, putting extra money away each month isn’t possible. But if you were able to do so, or if you have the time to start doing so now, savings are an excellent way to fund your retirement when the time comes.
Besides putting money into a savings account for retirement, you can also invest the money. Investing in stocks, bonds or real estate can be a great way to give yourself another source of income later in life. However, all investing comes with some risk. If you’re planning for your retirement now, you should speak to a financial planner about how to get started with investing. If you’re retired now, you can still invest some of your money with the hopes of growing it into a larger sum.
Working another job is a common choice for people who have retired. Just because you no longer want to work full-time at your previous place of employment doesn’t mean you don’t want to work. Many retirees look to find a part-time job that helps to supplement their retirement savings or social security income. Retirees often find jobs as cashiers, consultants, freelancers, delivery drivers, customer service representatives, and more. Think about where your skills lie, along with the type of work you want to be doing while retired. Even a small part-time income can make a big difference, plus you get the benefit of still going to work during the week.
A reverse mortgage is when you borrow money using the value of your home. To qualify you must be at age 62 or older and have substantial equity in your home. The money you receive is tax free and there are no monthly mortgage payments required. However, interest rates are incredibly low, and you may choose to repay the interest at any time without penalty. According to Michael G. Branson, the co-creator of ARLO, “Anyone who has desires or needs that cannot be met with their current income levels should consider a reverse mortgage. It is a great tool to help you stay in the home you love or to simply enhance your retirement years.”
However, it is important to investigate all the details of a reverse mortgage before deciding anything. Talk to a financial expert and see if this is a plausible solution for your situation.
Your last option is to downsize your current lifestyle a little. If you can cut back on the amount you are spending, this is effectively the same as bringing in more money. Once you’re retired, there are some simple things you can do to reduce your spending.
For example, if you and your spouse are no longer commuting to work, maybe you only need one car. Or perhaps you can move to a smaller home, now that your kids are on their own. Take some time to really go through your finances and think about what you need to spend. If you can find some areas to make cuts, this will make funding your retirement a lot easier.
Live the Life You Want
You deserve to live your retirement how you want to. This requires that you get your finances in order and that you have enough money to live off of. There are many methods for funding retirement, but not all of them will be right for you. But hopefully, with the methods listed above, you will hopefully be able to find some combination that works for you and start living the type of retirement you’ve earned.