As we talked about last time, retirement is not cheap, and the more retirement income seniors have the better. Seniors and retirees need to learn as many strategies to create more sources of retirement income as possible, to pad their spending, have a larger nest egg, and make retirement last as long as possible. In addition to The Motley Fool, the financial institution Fidelity also offers some ways to build more retirement income.
Four more retirement income building strategies include:
Downsizing for More Retirement Income
Next to healthcare, housing costs are the biggest expenses for seniors. In retirement, you may want to change your lifestyle or environment, which can mean changing your living spaces. Homes are investments, you can cash in and see some profit.
Health Savings
Health savings accounts deal with health insurance providers and financial institutions. If you have a high deductible, and are over age 65, you can use your health savings the same was as a regular IRA account.
Annuities
An annuity account works like Social Security. You pay into it with an insurance provider now, in return for future payments, creating a fixed income source. The coverage fees and return on investment vary on the type of annuity.
The Bucket System for More Retirement Income
The bucket system simple means to diversify and categorize sending and savings. Like Fidelity suggests, utilize different portfolios for different reasons. Have a rainy-day portfolio that you don’t expect to use often, along with another everyday portfolio you intend to use more frequently to help you increase your savings for when you need them.
The Council for Retirement Security’s mission is to ensure every senior gets the benefits they deserve. Your benefits are there to help, but more money is never a bad thing. Diversify and strategize to save for retirement and follow the Council online to stay informed.
