Planning Briefs
How To Bridge A Retirement Shortfall
Published Friday, May 24, 2013 at: 7:00 AM EDT
Suppose you’ve scrimped and saved for retirement but you still haven’t met your goals. Or perhaps an illness or a business venture that went south has exhausted your discretionary funds. Or maybe you just didn’t count on costs rising so quickly. In any event, you’re standing on the precipice of retirement, but you don’t think you’ll have enough to live comfortably for the next 20 or 30 years. These four practical suggestions might help:
1. Relocate to a less expensive home. According to the Social Security Administration, housing is the largest component of living expenses for people over age 55, accounting for 35% of the cost pie. One of the best ways to save money during retirement may be to downsize your home. Do you really need that rambling four-bedroom colonial in which you raised your kids? You probably do not.
And it’s not just size that matters. You might consider moving to a location where the climate is agreeable and the costs are lower than what you’re currently paying. Just don’t forget to factor in state income taxes and other taxes. For the adventurous, a move out of the country could be an option.
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