While we’d like to imagine that between Social Security and retirement contributions there would be a significant amount of income to live off in our golden years, but that is not always the case. As the age of retirement approaches 70, some may not feel the desire or ability to continue at the daily grind for that long. You can cut unnecessary expenses as much as you can but minimum income levels will still have to be met to continue with the current lifestyle, so you could have a few options to opening up additional funds in order to make ends meet:
The thought of working longer, especially with mindset of retirement already setting in can be tough, but it might make the most financial sense. While you could claim Social Security benefits today after the age of 66, it’s waiting until over 70 is when there could be a significant improvement in the monthly payout. Maybe your 40+ hours per week day job wouldn’t have to continue, but if you’re able to afford working part time in order to still remain employed, it could be worth it in the long-run.
Look into a Life Settlement
As you get older, you may reach a certain point when your life insurance policy no longer makes sense and you’d rather have the money while you’re living. Whether you’re unable to afford the premiums any longer, there’s a need to cover expenses, or simply looking to increase your income, then selling your insurance policy to an investor may make sense. With life settlements, the original policyholder receives a cash payment and transfers the policy entirely over to the buyer who will now receive full benefits and the existing beneficiaries are now removed.
Pull Equity Out of Your Home
Whether you’re looking to consolidate debt, fund a home improvement project, or tap your home for extra cash, a home equity loan could be an option. With low interest rates and terms that can spread out as much as 10-15 years, monthly payments can be low. However, with a fixed income approaching, it may not make the most financial sense to add on additional monthly payments, so a reverse mortgage may be a better answer. This way, your equity is exchanged for cash that you do not have to pay back until you either sell the home, or your heirs do. For this reason, reverse mortgages are popular options for seniors as you can tell by the amount of daytime TV ads.
Find a Side Hustle
There are plenty of opportunities to make extra money on the side, it just depends on how motivated you want to be. Driving for Uber/Lyft can be a great way to choose your own hours, not to mention witness entertaining passenger pickups to and from the bars. Food delivery services are becoming more popular as well. If you’re looking to avoid driving and are computer-savvy, then options such as filling out online survey’s or blogging could bring in extra income.