If you're worried you won't end up with enough money to retire on, you're in good company. Recent Gallup data finds that only 45% of non-retirees expect to have access to enough money to cover their senior living costs without worry. This means that more than half of non-retirees fear they'll fall short.
But that same set of data paints a generally positive picture from the perspective of actual retirees, 79% of whom say they do, in fact, have enough money to live comfortably lifestyles. So if you've been doing your part to save for retirement consistently, you may be pleasantly surprised at how things shake out financially.
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Still, you don't want to leave your retirement finances to chance. So if you're nearing retirement and you're worried your savings won't be sufficient, here are some tips for boosting your senior income.
1. Stay invested
Some people are wired to dump their stocks in retirement for fear of market losses. But while it's a good idea to reduce your exposure to stocks as a retiree, you shouldn't plan to completely unload them, either.
You need stocks in your portfolio to continue generating growth. And dividend stocks could end up being a steady source of supplemental retirement income for you.
2. Delay Social Security
Your complete monthly Social Security benefit based on your personal wage history is yours to enjoy in full once full retirement age arrives. That age is 67 if you were born in 1960 or later.
But you don't have to file for Social Security at full retirement age. If you're able to sit tight a bit longer, you can boost your monthly benefit by 8% for each year you delay your claim, up until you turn 70.
Now in some cases, the ability to delay Social Security might hinge on you working longer. But if you're able to do that, you might easily grow your Social Security checks by 24% (assuming you have a full retirement age of 67 and you file at 70 instead). A boost that large puts less pressure on your nest egg, allowing your savings to last longer.
3. Embrace the gig economy
Side hustles aren't just for cash-strapped millennials looking to pump up their travel budgets. Getting a side gig is a great thing to do as a near-retiree because the extra money isn't income you're counting on. As such, you can put it into your savings and reserve it for later.
Also, if you get used to working a side gig before retirement, you may be in a great position to continue that work in retirement. That not only gives you something to do with your time, but also gives you additional income to fall back on.
It's encouraging to see that today's retirees seem to be doing well financially. But let's also remember that while most retirees report having enough income to manage their bills well, roughly 20% don't fall into that category. Because of this, it pays to ramp up on savings in the years leading up to retirement, whether by spending carefully, earning extra from a side job, or both. And it pays to invest and claim Social Security strategically to boost your senior income on a whole.
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