When we are working the daily nine-to-five, we dream of the day that we can finally retire. However, life expectancy is on the upswing and many people find that they are outliving their retirement assets. If this happens to you, you may want to consider one of the following options for supplementing your retirement income.
Consider cashing out your life insurance policy
Do you have a life insurance policy? If so, you may want to consider cashing it out. It is an asset that oftentimes you do not need in the long run. Cashing it out can provide you with some much-needed assets should your other retirement assets run dry.
Consider utilizing the equity in your home
If you have lived in your family home for many years, you may have dreams of keeping it in the family. However, if you are running low on retirement assets it may make more sense to sell the home. If you sell the home, you can downsize to a smaller abode and pocket the remaining sales proceeds. Alternatively, you can pursue a reverse mortgage. And you will want to consider whether your heirs really want to inherit the family home anyways.
Explore your eligibility for government assistance programs
There are a variety of government assistance programs that can help seniors who need financial assistance. Some examples include Medicaid, Section 8 housing and the Supplement Nutrition Assistant Program (SNAP). These benefits can help pay for medical care, housing and food, respectively.
Take a second look at your remaining investments
Some types of investments such as savings accounts and mutual funds have low returns. If you are relying on these dwindling assets to supplement your retirement income you may want to consider transferring these funds to an investment that has a higher return such as stock funds. Be careful with this option, however. It can be risky, so many choose to work with a financial professional if they want to rearrange their investments after retirement.
Keep an open mind
Ideally, you will have considered retirement planning along with estate planning during your younger years. However, even the best laid plans can go awry, and you may find your retirement assets dwindling while you still have many good years ahead of you. And some people are unable to build up a nest egg altogether leaving them short of funds should they live to an old age. For this reason, it is important to maximize all sources of income available to you in retirement so you can live in comfort for your remaining years.