Four Options for Additional Personal Income (Reverse Mortgage, Working Longer, Etc)
If you are a senior citizen getting ready for retirement, you may feel that you aren’t comfortable with the amount of retirement savings you’ve accumulated. Thankfully, there are still some options for income beyond your own personal retirement savings and Social Security, including reverse mortgages, downsizing your home, working longer or part-time, and decreasing your expenses.
A reverse mortgage may be appropriate for you if you have significant equity in your home. With a reverse mortgage, you take a loan out against your home that you do not have to repay until you are no longer living in the home. You can receive a steady payment each month, which you can use to supplement your retirement savings.
Downsizing your home
If you live in a large home, and no longer need all of the space within your home, you may decide to sell your home to purchase a smaller one. Downsizing is great for your budget, because not only will you likely pay less for your new home than the equity in your old, you’ll also decrease insurance, electricity, and heating bills. If you find it overwhelming to maintain your home, you may consider downsizing to an apartment condominium, where you’ll have limited responsibilities.
You could choose to work in your current job longer, or decide to take a part time job. Working longer is one way to supplement your retirement savings. If you have a hobby, consider finding a job that uses or teaches your hobby, which will bring in more income and hopefully provide you with some personal fulfillment.
Decreasing personal household expenses
If you’ve exhausted all options to increase your income, you’ll want to analyze and review your budget for opportunities to cut expenses. Look at all of your utility payments, and utilize all options for decreasing those bills. In addition, look at your lifestyle, and see what expense changes you can make. For instance, if you and your spouse are not working, perhaps you can consider downsizing to one vehicle.