Four Things to Do If Your Retirement Savings Is Less Than Planned

If you are in your late 50s or early 60s and have not saved as much money for your retirement as you wanted to, there is still time to plan for your retirement with less money. The following are several things to consider that may help in making your retirement years better.

Plan on a more frugal way of life

This is not a bad idea regardless of the amount of money you will have available, but if it looks like you are going to have less than you planned, your first step will be to begin to think of ways to cut back on expenses. Housing is usually the most expensive cost you will need to address. If you can reduce your monthly cost for a roof over your head, you will make significant progress in lowering your cost of living.

Plan on working part time

Although working part time during your retirement is an obvious way to have a higher standard of living, you may find it difficult, if not impossible, to get a part-time job in your retirement years. The trick is to focus on self-employment. Try to find a way to turn a hobby into a part-time income. One example would be to provide music lessons for an instrument that you play. A part-time income can be generated in many ways doing things you have always enjoyed doing in your life, and this will fit well with a retirement style of living while providing additional money.

Pay off your mortgage

If you still have a mortgage, you can pay it off before retiring. If you begin your retirement with a house that is paid off, you will have a low cost place to live. Of course, there are many expenses involved in maintaining a house, but this money is generally much less than you would have to pay for renting an apartment.

Tap into the equity in your house

This can be done without selling your home. In fact, a lender will pay you a certain amount of money each month, and you will be able to stay in you home until the day you die. A reverse mortgage company can provide details of this type of mortgage arrangement.

If you have found yourself short of your financial goals for retirement, don’t fret about it. Simply focus on alternatives in retirement. The above mentioned ideas will give you a good start.