If you haven’t read Part 1 about eliminating or reducing expenses, please read that first. The most important takeaway from Part 1 is that you must be debt free to retire. It simply makes no sense to try to retire with debt and still making monthly payments. An experienced debt settlement law firm like ours can help with this piece of the equation.
Assuming you’ve got your expenses under control, you’ll need to focus on lining up some reliable income. We’re assuming that you have no savings, i.e. no 401k, IRA or similar to draw from.
Social Security Income
Most people in this scenario will rely heavily on social security. Given that it will be a big part of your retirement income, it makes sense to be very strategic about it. There are all sorts of rules about how much you and/or your spouse get depending on what age you start drawing social security. You’ll want to research this heavily to determine when is the best age for you to begin drawing social security. Factors such as your health and marital status may play a role.
Government/Military Pensions
If you served in the military, worked for the post office, etc., you may have a government pension coming your way. Be sure to research that plan to make sure you are getting the most out of it.
If your social security is inadequate and you don’t have a government pension, you will need to explore other income options. The key is to find something that throws off reliable income that you can keep doing for many years into retirement, perhaps your entire life. Here are a few ideas.
Caregiver
This was mentioned briefly in Part 1 because it can also lead to free housing sometimes. But if you are able/willing, there is a lot of demand for caregivers of the elderly. Sometimes the companionship is a nice bonus. It is not always glamorous work, but it is something that many older Americans do.
This could take the form of a formal job as a caregiver, or an informal arrangement with another family member. Either way, it can provide steady income and way to survive retirement. It could even lead to free or reduced housing expenses. So two birds with one stone.
Part Time Work
If you are able, you may seek part time employment as a source of income. We suggest you find something that is physically sustainable for many years to come. A job search for senior jobs should yield some good ideas.
Self-Employment
Self-employment is not for everyone. But we’ve heard some pretty creative ideas people have come up with to make ends meet. One gentleman had acquired a bunch of “stuff” of the years and began methodically selling it on eBay. He would sell a little bit at a time each month to generate some extra income. Of course, eventually this will run out, but you get the idea.
Depending on your career background, you may be able to find consulting work or other project-based work that generates regular income.
This is where you’ll have to get creative. It may not be easy, but lining up some recurring income, even if it’s small, will go a long way in building a retirement for you. When added to social security and other sources, you may just be able to make it work – even without savings.