You may be looking forward to retirement, but retirement isn't generally very enjoyable for those who don't have enough money saved up to live comfortably. If you're struggling to put enough money aside to do everything you want to do during retirement, it's time to get creative.
The following are a few suggestions on securing a little extra for retirement. You might be able to work some of these options into your plan so that you enjoy a secure retirement and don't have to worry so much:
Expect the unexpected
Even if you have a lot of money saved up and think you're going to be secure, surprise expenses can sometimes come up that can wipe out large portions of your savings. Events like car accidents or illnesses cost consumers a great deal and can sometimes quickly convert a consumer's financial savings situation from being ready for retirement to being set back a decade. If an injury threatens to wipe out your savings, a personal injury lawyer like Mike Pines in the San Diego area can be a great help in replenishing your hard earned money. If you’re not in San Diego there are great attorneys nearby.
Properly insuring yourself to protect your finances is one thing you can do to cope with these surprise expenses. Also, investing in good lawyers who can protect you when you're facing a liability issue is important.
Diversifying your investments
You've probably heard before that you don't want to put all your eggs in one basket. It's good to put your money into diverse account types so that at least a few of your investments end up generating good returns.
Diversify your stock portfolio and try to build up a 401(k) in addition to your pension or IRA if possible. The more fund sources you have to draw from during your retirement, the more comfortable and secure your retirement is likely to be.
Working more or taking on a second job
Taking on a second job while you're young and energetic can be a great way to quickly boost your retirement savings. It can even permit you to retire early. If there is some side business venture you have the opportunity to get into that could be lucrative, you might not want to let the opportunity pass you by.
Claim your benefits later
It's always best to wait until you qualify as being at full retirement age before you start drawing from your social security.
Full retirement age is considered to be either 66 or 67 depending on what year an individual was born in. When you wait until you've reached full retirement age before collecting, you get 100 percent of the benefit that you're entitled to. However, this number can push even higher if you don't start collecting until you've reached age 70.
You'll be eligible to start collecting your benefits once you turn 62. Those who fall into the temptation and start filing at 62 will pay for it down the road because they're only going to get a reduced amount back for everything they've put into the system through the years.
If you can continue working until you've reached 66 or 67, you will be able to rely more on social security and less on your own savings during retirement.
The more effort you put into planning things out and anticipating surprise expenses, the less likely you'll be to have your savings wiped out all at once. It's best to save not just enough to cover your retirement, but more than enough so that you can afford some unpleasant surprises along the way.