Americans are notorious for being terrible savers. More than one-fifth of all United States adults have absolutely nothing stored away for retirement. Nearly four-fifths of all Americans are seriously worried that they will run out of savings before they pass away. Retirees, however, don’t actually need that much money saved up prior to leaving their jobs, kicking back, and relaxing.
Most people exchange money for goods and services on a daily basis. That’s how the world works. Since the United States has the brightest economy in the world, most Americans think that the only way to survive is to pay money for things like food, shelter, and other necessities.
Although it might not seem like a good idea at first glance, Americans can comfortably retire with very little money saved up, and we’re going to tell you how. You can use this free Retirement Calculator to help you figure out your own game plan.
Pension Plans Are Amazing –
Pension plans are a type of compensatory benefit that award employees with monthly payments to make their golden years that much easier. They are typically only awarded to workers who have given at least 10 or 20 years to their employers.
The median annual federal government pension was worth $22,172 in 2016. Pensions from state and local governments came out to a median value of $17,576. Railroad and military pensions were calculated at $24,592 and $20,723 per year, respectively.
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Keep in mind that it’s always possible that someone’s pension can vanish into thin air if the business they worked for goes out of business. However, this usually only happens with private companies. If a retiree has a pension from any local, state, or federal government, they can rest assured that their pension plan will outlast them.
Wait To Draw Social Security –
Unfortunately, many 62-year-olds find it necessary to draw Social Security payments as quickly as possible. Drawing Social Security benefits at the age of 62 will result in them receiving the lowest payout possible.
Waiting until one reaches the age of 70, on the other hand, will reward them with an annual total payout that is more than the annual payout of Social Security benefits taken by someone who is only 62 years of age.
If someone can afford to wait until 70 years of age to request Social Security disbursements, that person will find that retiring on very little money isn’t so difficult after all. Check out this blog post about when you should start collecting Social Security benefits: https://www.advantageccs.org/blog/when-should-you-start-collecting-social-security-benefits
Live Somewhere With An Agreeable Climate To Grow Food All Year Long –
Very few Americans grow or raise their own food on a regular basis. Most people simply fork over money for food at supermarkets and restaurants. Living in an area that stays warm enough all year long for people to grow their own fruits, vegetables, spices, and other foods is a good way to reduce someone’s planned expenditures.
People who can’t feasibly move to such a climate or simply don’t want to should seriously consider gardening each year and canning the “fruits of their labor.” Although eating from the same selection of fruits and vegetables might get old after a while, it’s an awesome way to keep expenses to a minimum in retirement. It also gives you a nice hobby to occupy your free time!
Use A Budget To Plan Out How Any Savings Will Be Used –
Retirees who want to retire on very little or no money are greatly benefited by learning budgeting skills. Whether retirees have only a few hundred dollars or tens of thousands of dollars, they should make detailed plans to allocate what cash they do have to the things that matter the most.
People who aren’t good at saving money should apply what funds they possess immediately after retiring to important applications. This strategy for retiring on very little money brings together the processes of budgeting and saving money. Feel free to use our online budgeting tool to help you create a household budget within minutes: https://www.advantageuser.org/BudgetAdvisor/index.php
Find A Hobby That Lends Itself To Generating Income –
Many retirees find out that it’s better to stay busy throughout their post-working years than never have anything to do. As such, it’s likely that most retirees pick up one or more hobbies within weeks of entering their golden years.
Retirees need to find hobbies that interest them and maybe produce goods and/or services that can be sold. Even if retirees don’t make much money from their hobbies, the little money that they do earn can be allocated toward something important.
Kick All Debt To The Curb At Least Two Years Before Retirement –
The only types of investments that can generate a high-enough return to offset the interest rate charges racked up by consumer debt are very risky and not likely to perform well in the long run. As such, it makes sense for retirees to bust away the entirety of creditors’ claims against them a.k.a. unsecured debt. This will ensure that retirees won’t have their pensions, annuities, or other income streams garnished or asked to forfeit some or all of their savings as a result of creditors’ legal action.
Pay off that debt BEFORE you reach retirement age. A Debt Management Program from Advantage CCS can help you do that. Give us a call at 1-866-699-2227 or visit us online at https://www.advantageccs.org