Do I have enough to retire?
Who hasn’t asked themselves this question: Do I have enough to retire? Very few people actually do.
The real truth is that most of our generation is about to retire with no savings. Period!
Having nothing saved for retirement can be a frightening thought. But just because you have no money saved for retirement, it doesn’t mean there is no hope.
For every fortunate soul who arrives at retirement age with a good pension or a nice nest egg, there are dozens of folks who, for countless different reasons, arrive with just a suitcase full of unrealized plans.
The reasons are endless; divorce, sickness, financial hardship, are just a few.
Just because you’ve arrived at 65 and have nothing saved for retirement, the situation is not hopeless.
NO RETIREMENT SAVINGS
So, you think you have no retirement savings, but you might be very wrong.
Let’s look at a typical nest egg like a 401K or an IRA account.
Say, for example, you have saved $300,000 in your account. The experts tell us that we should figure on 18-20 years of life after we retire. If we divide $300,000 by 20 years, we would have $15,000 a year to spend. That’s not really that much per month ($1,250) but if you add that to your Social Security and any other retirement money or pension, it can really help.
The only problem with the example is that it’s just that. An example. Remember, we’re talking about folks who retire with no savings, who don’t have the $300,000 in the account. The answer to this problem is simple. You’ve been doing it all your life. Yep. Work.
In my case, I retired and took a part-time job. I’m clearing an average of $1,250 a month. In monetary terms, my job is the equivalent of having $300,000 in the bank.
Now, this won’t work for everyone, but excluding health issues, it will work for many.
If you just take a job at McDonald’s for $12 an hour for a couple of days a week and bring home $540 bucks a month. That’s the equivalent of having a nest egg of $130,000 and, as a retired person myself, I know that you were looking for something to do on those days anyway.
Average Retirement Savings
For most baby-boomers, it’s nothing, nada, zip, zilch, nyet, . . . well, you get the idea.
When I started planning to retire, the first thing I realized was that I couldn’t. I wanted to retire at 65 (OK, really 25, but that didn’t work either). After visiting the Social Security website and doing some research I found that if I delayed my retirement by 1 year I would increase my monthly check by over 7%. I waited for 2 years and increased my monthly check about 15%. In my case, it was like putting away an additional $82,000 bucks in a retirement account.
By working the extra 2 years I theoretically “saved $41,000” a year toward my retirement. And I
did this AFTER I was 65! And you can too.
DON’T retire early!
I can’t say this enough. If you are thinking about retiring early, like at 62 or 64, DON’T.
You are actually cutting yourself off from thousands, possibly hundreds of thousands of dollars. This is real $$$ that you can have in your retirement years. The National Council on Aging has a great article that explains it in detail. NCOA
Face facts. For whatever reason you have, you didn’t save any money. Say it out loud. Cry for a few minutes and then realize that it’s not too late.
Think about it. If you can increase your Social Security check by 30% by simply waiting four years then DO IT. Cry and whine if you must but DO IT. It’s the best thing you can do at this point.
If you’re retiring just because you’re tired of your old job, then great! Use this time to start a new one. Learn to bake pizza or grow plants or start a consulting company with the knowledge you’ve amassed. The main point is DON’T Stop Working.
I have a friend that took his Social Security at 62. Had he waited until 70 he would have collected almost $800 more a month. That’s a lot of money to leave Uncle Sam.
In 2019 the average Social Security check is $1,491.00 a month. 30% of that is going to be about $450 more a month. FOR LIFE!
If you live another 18 years that’s another $ 97,200 more you have to spend in retirement.
$ 97,200 !!!!!
Many folks only retire when they can’t do the job anymore.
Age or illness has a way of slowing you down. So, if you can’t do what you used to do, do something else.
If you’re reading this, you probably have a computer. There is money to be made just sitting on your backside. Here’s a few ways to make some dough.
SELL STUFF ONLINE
With the rise of E-Bay and Craigslist and even Facebook, you can find almost anything for sale. If folks are buying online….they are selling online. Many people are actually making a living buying stuff at local flea markets, estate sales, moving sales and yes, even online and then reselling it online. There is usually a big difference between the price you will pay for something when you want it and the price you will sell it for when you don’t. That money could be in your pocket. $$$ in your pocket.
CREATE A PART TIME JOB
Maybe you were in construction but can no longer work all day climbing ladders and moving equipment. Take your skills and use them differently. I met an old plumber once who was making a hundred bucks a day in only about an hour a day! He took out an ad in the local Pennysaver and only offered to install new faucets. That’s it. Just faucets. He was so busy he had to turn down work. You could do the same with anything. Faucets, sinks, toilet seats, new cabinet handles, door knobs, locks. The list is endless. The work would be easy and the hours are your own. If you can do something . . . you can sell it. Are you good with computers or even cell phones? There are people who will pay for what you know. Ever heard of Computer Geeks?
START A BUSINESS
Take the experience you’ve amassed during a lifetime of working for others and make money with it. The idea goes like this. So you can’t climb a ladder and paint a ceiling or clean a house. Then hire someone younger. You use the knowledge you have to bid the job, then hire employees that can climb and bend and lift, well you get it. KFC founder Colonel Sanders didn’t make money cooking chicken, he hired other people to cook the chicken. His contribution was in knowing HOW to cook.
Not a teacher, No problem. Can you speak English? There are actually people who can’t. And they will pay you to teach them how to speak like an American. Thousands of foreigners are paying for online tutoring. They want to learn English, Spanish, even Chinese or Japanese and they have money. Money is what you want and a native language is what you have. You can work as much or as little as you want. Check out Tutors.com
Lastly, if you really want adventure in retirement, think about retiring overseas. You can retire in Serbia for way less than you might imagine. And then you can travel about Europe for a while.
P.S. If you do have a nest egg, make sure it’s in a good nest. If you haven’t already, consider a good financial planner. A good financial planner can help ensure that you can enjoy your retirement years without the worry.