You’re not alone if you are afraid of running out of money during your golden years. In fact, 61% percent of people ages 44 to 75 feel the exact same way, according to a 2010 Allianz Life Insurance Company poll.
While this outlook may seem grim, there are options out there for you to maximize your finances.
Downsize
If you haven’t started living smaller, it’s the smartest and easiest strategy to help save money. We know it’s hard to let go of the family home, but it can help reduce financial stress by tying up less of your monthly budget.
Your home isn’t the only area in which you can downsize. Do you really need two cars or a car at all? Are there other options for you to get around where you live?
You can even downsize the cost of your medications. On average, retired seniors over the age of 80 take about 11 medications daily – which can take up a huge chunk of your monthly finances. There are programs out there, like NeedyMeds, which can connect you with patient assistant programs to help offset prescription drug costs.
Create Extra Income
When you retired, chances are you didn’t think about going back to the daily grind. There are other ways to supplement your income. You could rent out an extra room in your home, or rent out that extra space in the garage from downsizing that second car.
Pay Back Social Security
If you are under the age of 70 and have started collecting Social Security within the last year, pay it back. By paying back collected funds and waiting to claim any Social Security until the age of 70, it increases how much of your benefit you can collect. After the age of 70 you are eligible to receive 132% of your benefits, versus the 100% you could collect at the age of 66.
Reverse Mortgage
Reverse mortgages enable homeowners to use the equity of their home as a revenue stream. If downsizing your home is out of the question, a government-issued home equity conversion reverse mortgage can help. When choosing a reverse mortgage, you can receive a line of credit, cash in monthly payments, or a lump sum.
Cut Off Your Adult Children
This may sound harsh, but retirement is a good time to talk with your children about preserving your funds. Be honest with them; it’s important for them to know that you need to be able to support yourself.
Meet With a Financial Planner
This may seem like an obvious piece of advice, but a financial planner can help you work through those complicated retirement issues. Should you downsize? Should you look into a reverse mortgage? Should you supplement your income?
Get Advice From Other Professionals
There could be benefits out there that you are eligible for that you are unaware of. If you served in the armed forces, check with your local Veterans’ Administration office to see if you are eligible for benefits. Talk with benefits specialists at the companies you worked for; there just might be retirement benefits available that you never knew about.
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