10 Steps to Take if You Start Retirement Without any Savings

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If you never had the ability to save for retirement or you find yourself running out of money in retirement, you may think you’re up a creek. Fortunately, that’s not the case. There’s a lot that retirees can do to keep themselves afloat financially from cutting back to getting a job or even getting financial assistance.

So what should you do if you are starting retirement with no savings? Check out the tips below.

Delay Social Security Until Age 70

If you feel great and can continue working past age 65, do it. The extra five years of working gives you more money to save. In addition, delaying your social security disbursements by just five years can add thousands of dollars to your retirement income. Every month that you don’t take your benefits past the age of 65, your social security benefits increase. If you can’t or don’t want to work, see how well you can live without taking your social security payments right away. The longer that you wait, the higher the payments you’ll receive.

Reduce Expenses

If you lived life to the fullest during your working years, you may not mind cutting back during your golden years. You can make your dollar stretch with some of the following options:

Cut services you don’t need
Don’t sign up for memberships or subscriptions
Make your food at home rather than eating out
Only shop the sales at the grocery stores (if it’s not on sale, don’t buy it)
Cut back on extras like nail salon or hair salon visits
Clip coupons
Shop online
Shop around for cheaper insurance (home or auto)

Downsize Your Home

Chances are that you don’t need the big home you once needed with the kids at home. Once you are an empty-nester, consider selling your largest investment and downsizing. If you can buy a home with the cash from selling your home, you enter retirement mortgage-free, which greatly reduces your monthly obligations. If you downsize, you should also have lower taxes and insurance costs, furthering your ability to save in retirement.

Take Out a Reverse Mortgage

If you own your home free and clear, consider taking out a reverse mortgage. This taps into your home’s equity, without the need to make monthly payments. The mortgage accrues interest, but you don’t have to pay it until you sell the home or move out of it. If you die in the home, your heirs must pay off the reverse mortgage when they sell it (they typically have six months after you pass).

Use Your Life Insurance Policy

If you took out a permanent life insurance policy, it may have cash value. Talk with your insurance agent about tapping into some of that value to use during retirement. While this may decrease your death benefit (the amount your beneficiaries receive), if it helps you while you are still here, it’s money well spent. There shouldn’t be a penalty for taking money out of your life insurance policy but always check with your agent so that you know the full picture.

Get a Roommate

If you live alone, why not split the expenses with someone else that lives alone? You may find that you love the company, especially if you find someone with similar interests. When you split the bills, your dollar suddenly stretches much further. Make sure you choose your living arrangements carefully, though. Decide if you want to own a home together, rent a home, or just one of you own the home while the other pays the rent.

Sell Some Assets

Think of your largest assets besides your home. Do you have cars you no longer use or expensive items that just sit around and collect dust? Consider selling your assets so that you have funds for retirement. You can also sell your investments, such as stocks and bonds and use the funds for living expenses. Just watch your capital gains as that will increase your tax liability, which eats away at your profits that you can use for retirement.

Look Into Government Aid Programs

The federal and state governments offer aid programs for low-income seniors. Programs such as food stamps, Medicaid, the ‘Extra Help Program’ if you have Medicare Part D, and supplemental social security income may all be within reach. Check with your local social security office to see which programs you may qualify to receive.

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Get a Job

It may seem counterintuitive to work while you are retired, but it may be necessary. This time around, consider doing something you love – that brings you joy. A few examples include:

- Be a consultant for the industry you retired from
- Tutor school-aged students or even adults
- Be an athletic coach
- Work as a virtual assistant online at home
- Take care of pets by offering dog walking or pet sitting services
- Prepare taxes
- Be a blogger

- - Be a part-time teacher (high school or college)
  - Work as a part-time nurse
  - Work as a real estate agent
  - Work in part-time sales
  - Work in retail
  - Monetize a hobby
  - Offer a digital gig online (voice-over services, writing, data entry, etc.)

Ask for Help

Don’t be ashamed to ask for help. Your family members may have options that can help you financially. Even if they don’t give you money outright, they may offer you a place to stay if you care for their kids or help care for the home. You don’t know what your family members can offer in the way of financial, physical, or even emotional assistance, so always ask.

Don’t worry if you enter retirement without savings; there are resources to help you. The key is to get creative and if you can, delay retirement as long as possible. The more you work and get your social security credits, the more money you’ll receive when you do retire. If you get creative, though, you can find ways to supplement your income, making the most of your retirement.

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10 Steps to Take if You Start Retirement Without any Savings

Mahugu Nuthu is a content creator known for his compelling and well-researched business analysis. His blog MHGcode.com, provides insights and proven strategies for effective entrepreneurship, side hustle hunting, passive income pursuit, small business ideas, saving and tips for slashing costs.

This information is for educational and entertainment purposes only. The information that is shared on MHGcode.com shall not be interpreted or construed as financial, accounting, legal or tax advice and should not be acted upon without further professional advice.