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So what happens if you do run out of money?
What options do you have?
You might be surprised to learn that you have more options than returning to the workforce.
Make Lifestyle Changes
Running out of retirement savings doesnt mean you are down to a few pennies.
In fact, most retirees can predict their savings depletion rate well before they risk having no funds.
The first thing you want to do is look at your income and spending.
How can you cut back?
Renegotiate every aspect of your life, from your monthly insurance premiums to your phone bill.
Making lifestyle changes can help shut the deficit between the money you receive and spend each month.
Review your expenses and make necessary cuts, says Lauryn Grayes, founder ofWealth Gems Financial Solutions.
Look for ways to lower utility bills, eliminate unused subscriptions, and cut excess spending.
Making minor adjustments freed up $300/month for one client, enough to afford essentials.
Small changes add up significantly over time.
Rework Your Portfolio
Your portfolio allocation plays a major role in the income you receive each month.
For example, you could sell a portion of your portfolio and invest in dividend stocks.
The growth of these stocks might be less, but you now have access to moremonthly cash flow.
In addition, consider purchasing real estate investments.
The right rental property can provide you with monthly cash flow and fire up the door to tax benefits.
Can you downsize your house?
How about trading in your new vehicle for a reliable used one or taking advantage of public transportation?
Do you have a commodity collection that you might sell?
Selling items that arent necessities can generate income to get by.
Can you secure low-income housing?
How about qualifying for food stamps or lowered health insurance premiums?
Qualification for these programs will depend on your location and income level.
you’re able to apply for this program and more when you enroll for retirement benefits.
Explore income-based support programs you may now qualify for, added Grayes.
Dont let pride prevent you from applying for Medicaid, food assistance or utility bill help.
These programs exist for situations like this and every dollar helps when times are tough.
Some policies allow you to access your death benefit while alive to pay for medical expenses.
In addition, certain life insurance policies can be sold for a lump sum of cash.
This can be a viable option if you need funds to live on.
The amount you receive from the sale will be based on your policys length and the cash value amount.
A side hustle doesnt have to be labor-intensive or full-time.
Starting a side hustle gives you income to support your retirement lifestyle.
The bottom line is you have options if you run out of savings in retirement.
To find the best solution for your situation, consult afinancial planner or advisor.
These professionals will help you find viable strategies based on your specific needs.
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