What To Do When You Run Out of Retirement Money

Most people work late into life, saving up for retirement along the way. Whether you retire early or late or at a typical age, you probably expect to stop working from that point on. However, it doesn’t always work out that way. You might get bored and want to work. Or, unfortunately, you might run out of retirement money and need to work. What should you do if the latter scenario happens to you?

First, Don’t Panic

Many of us were raised on a very traditional work model. You got a job as a teenager, maybe got an education or moved into more experienced positions over time, continued to level up in your career, retired, and stopped working.

However, over the years, that model has changed. Those of us who grew up with that don’t necessarily see it as the way it is today. We’ve changed jobs frequently, started businesses, begun late-in-life careers, earned passive income, etc.

And yet, we still think of retirement in that traditional way: get old and stop working. However, it, too, has changed. Therefore, don’t panic if you run out of retirement money. You can still earn money. It’s going to be okay.

Second, Ask For Help

Many people are embarrassed if they run out of retirement money. Therefore, they try to hide the problem from people. However, this is a huge mistake. In fact, the earlier you notice the problem and start getting help for it, the better. If you realize that you might run out of money in retirement, then begin making a plan. Moreover, figure out who can help you.

Perhaps you need to get a late-in-life job. Start figuring out who can help you with that. Do you need new training? Should you brush up on computer skills, or do you need help getting your resume together? Where can you get a part-time or full-time job? Look to family, friends, acquaintances, and former co-workers for the help that you need.

Other Things To Do If You Run Out of Retirement Money

You may or may not need to get a job post-retirement. There are also other options. Here are some things to consider:

• Reduce your expenses as much as possible. Downsizing your home is a good start, for example.
• Budget for your Social Security Income. Do your best to live within your means, even if your means are now restricted.
• Rent out what you can. Do you have a room, a second home, a garage, a car, or tools that you could rent out through local programs? This can begin to earn you income.
• Sell items that you no longer want or need. Maybe you don’t even drive anymore, so you could sell your car. Perhaps you have antiques that are just collecting dust. What can you sell to add to your nest egg?
• Find out what programs are available to you. Local, state, and federal resources are available to assist you with needed income. Do the research. Ask for help if you need to. A financial consultant may be able to assist you.
• Is a reverse mortgage right for you? It’s not suitable for everyone, but some people find that this helps them if they run out of retirement money.
• Borrow from your life insurance. Again, this may or may not be right for you. Consider all of your options carefully.

Read More:

• How to Check If You Can Afford To Retire
• A Retirement Plan When Your Employer Doesn’t Have One
• Here’s What You Should Know About Social Security
• How To Announce Your Retirement