Retirement is a scary concept for some elderly people, not because it means aging, but because it means moving to a fixed income with a small financial room. If you're worried about not having enough retirement money, here are a few things you can do to look for extra money.
1. Wait to apply for Social Security
Your Social Security benefits are calculated by taking your inflation-adjusted average wages for your 35 highest paid years of employment. Once your monthly benefit is determined, you can start collecting it in full after you reach full retirement age. This age is either 66, 67 years old, or somewhere in the middle, depending on the year you were born.
But if you keep submitting retirement benefits, you will increase your monthly payments by 8% per annum until you reach 70. And that increase will remain in effect for the rest of your life.
2, Get a Part-Time Job
Many people associate pensions with not working, but it's actually a great time to keep a part-time job. This is especially true if you are used to working a full schedule because you can evaluate not only the extra money but also the added structure.
The best part is that you don't have to spend your free time in retirement, working a job that you can't stand. Rather, you can start your own business or make money from a hobby you are already dedicated to, such as gardening, woodworking or cooking.
3. Buy Dividend Shares
Often seniors are advised to prefer safer investments, such as bonds over shares. But if you buy stocks to pay dividends issued by solid, proven companies and hold them for years, there's a good chance you won't lose money in the stock market.
At the same time, you will benefit from current dividend payments (usually paid quarterly) that give you access to more money in your older years. Of course, dividend payment is not guaranteed, but companies with a serious history of doing so are likely to continue to do so.
4. Rent Your Home
If you are sitting on a large property retired but do not want to reduce it to less space, you can put those extra square footage for good use by renting part of it. This is especially possible if you have a completed basement or garage that gives the prospective tenant some privacy.
If you are interested in rental income but do not want to hire a full-time tenant, you can instead rent out your home seasonally or on random weekends. And if you rent your home for 14 days or less within the same calendar year, you will avoid taxes on the rental income you collect.
5. Pay part or all of your life insurance
If you have permanent life insurance that is cash back, it can serve as a source of income when you need it. Of course, the more money you make from this policy, the lower your death benefit will be paid to your heirs. But if your beneficiaries are no longer as reliant on this policy as they used to be (for example, if your children are already raised with their own income), this may not be such a bad thing.
If Your Savings Are Not You Are Not Healthy enough to maintain a level of spending that buys you a convenient retirement lifestyle, then you will need to consider using these and other tactics to maximize your income. Fortunately, you have many opportunities to increase your personal cash flow, so weigh your choices and see which ones make the most sense for you.