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For many people, retirement seems like a lifetime away. They might be in their 20s or 30s now, with few financial responsibilities and a relatively low cost of living. So it’s easy to procrastinate when it comes to saving for retirement. But if you’re nearing the end of your working years and don’t have enough saved up, don’t panic, because you’re not the only one! About 36% of Americans don’t have enough money for retirement. These Americans are stressed about how they can make ends meet once they retire while also enjoying their life.
It’s no surprise that this is happening in the country. It’s estimated that you should save at least $140,000 for retirement. However, considering that many still have bills to pay, they might have to supplement their retirement savings once they reach retirement age. Here are some great options.
Invest in Stocks
When it comes to retirement savings, time is your best friend. So if you have even a few years before retiring, consider investing in stocks or mutual funds. These can be riskier than other investments, but they also have the potential to provide higher returns over time. Just be sure to do your research and consult with a financial advisor before making any decisions. Here are some great stock investments right now:
- Apple (AAPL): Apple has been looking strong lately, with a share price of about 50% over the past year. The company is also sitting on a huge cash reserve, which it could use to buy back shares or pay dividends to shareholders.
- Amazon (AMZN): Amazon is another company that has been doing well lately, with a stock price that has doubled over the past year. The company is expected to grow rapidly, leading to even more gains for investors.
- Alphabet (GOOGL): Alphabet, the parent company of Google, is another excellent option for investors. The stock has been on a tear lately, rising by more than 60% over the past year. And, like Amazon, Alphabet is expected to continue growing rapidly in the years to come.
If you don’t think any of these stocks are a great option, consider investing your money in index funds instead.
Start a Side Hustle
Do you have a passion or talent that you could monetize? If so, consider starting a side hustle in your 60s to supplement your retirement savings. Here are some great side hustles you should start:
- Start a blog: If you enjoy writing, why not start a blog? You can write about anything you want, and there are many ways to monetize your blogs, such as through advertising or affiliate marketing.
- Affiliate Marketing: Affiliate marketing is a great way to make money by promoting products and services you love. You’ll earn a commission when someone clicks on your affiliate link and makes a purchase.
- Freelance Writing: If you enjoy writing but don’t want to start a blog, consider becoming a freelance writer. You can write articles for websites or even ghostwrite books.
Side hustles are a great option for any senior because they can control their time. Additionally, if you’re experiencing arthritis or any debilitating disease, some jobs are still available. There are now jobs for handicapped seniors, and these jobs don’t need any physical labor. All you usually do is type or do some easy data entry from home and still earn a decent amount of money.
Cut Back on Expenses
In the years leading up to retirement, it’s important to start evaluating your spending habits and looking for ways to cut back on unnecessary expenses. This could mean anything from eating out less often to downsizing your home (more on that later). Every little bit counts when you’re trying to boost your retirement savings!
Delay Claiming Social Security Benefits
If you can wait until age 70 to claim Social Security benefits, you’ll receive higher monthly payments than if you had claimed them earlier. This is because your benefits are adjusted for inflation each year until you reach age 70, which stops increasing. So if you can afford to wait a few years longer before claiming benefits, it could pay off down the road (literally). Consult with a financial advisor to see if this is right for you.
Downsize your home
One of the most significant expenses that seniors face in retirement is housing costs. If you own a large home with plenty of unused space, downsizing could free up extra cash each month that can be put towards retirement savings (or used to cover other living expenses). Plus, smaller homes are easier (and cheaper) to maintain, which is something else to remember as you approach retirement age.
Supplementing your retirement savings doesn’t have to be complicated-plenty of options are available, no matter your life stage! By taking advantage of some (or all) of the strategies outlined above, you can help ensure that you’ll have the financial resources you need during your golden years.
