Surviving When You Have No Retirement Savings

Surviving When You Have No Retirement Savings

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Many retirees have some kind of savings that were accumulated over the years; but for low income workers, they may retire with little or no savings, leaving them to rely mainly on Social Security benefits and financial help from loved ones. This puts some retirees in a vulnerable position, but there is help for them.

The person without retirement savings might need to take on a part time job to boost income, or carefully budget his Social Security benefits. He may need to seek affordable housing or move in with his adult children. Here are additional survival tips for those without retirement savings.

Work More Years

If you are able to do so, it might be a good idea to work a few more years and build savings through a regular savings account. More older persons are working and living longer; this means greater opportunities to save for retirement.

If you have a stressful job, consider entering a different career field that lets you be more relaxed and transfer the skills you learned at your previous job. During your employment, you should also cut back on unnecessary spending and not take on any more debt for now.

Consider A Home Based Business

Another idea is to start a home based business while in the process of retiring. Think about what your skills and interests are and proceed with the planning of the business.

If you love being around children, you can start a home daycare business. You’ll need to check with city and state zoning bureaus to inquire about how the home should be designed for your daycare. You’ll also need to find ways of getting the funds for the daycare. Advertise with flyers, business cards and by telling friends and loved ones.

Cut Down on Expenses

If you’re following the first two steps to boost retirement savings, you need to live a minimalist kind of life until your situation improves.

  • Ditch your cable service and instead stick to regular programming with local channels.
  • Instead of buying new outfits, learn to re-purpose the clothes you have and find new ways to wear them.
  • Conserve the energy in your home by turning off lights when you’re not using them and taking shorter showers to save on utility bills.
  • Consider a cheaper apartment and use mostly coupons to shop for groceries.

Meet With a Financial Counselor

Some local nonprofit organizations have financial counselors who can help you organize your finances and assist you in living well despite your lack of retirement savings. The counselor may go over your debts and income statements before coming up with a good money management plan for you.

In conclusion, it won’t be easy to survive without adequate retirement savings, but when you follow the above mentioned steps, you can have a stable future.

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Categories: Retirement Planning

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