RETIREMENT WITHOUT SAVINGS – IS IT POSSIBLE?

Retirement signals the end of earning a steady income. That is why financial advisers urge people to create their emergency fund. Unfortunately, a Bankrate study discovered more than one third of working-age adults do not stow away any money for retirement.

What will retirement look like without savings?

Let’s presume Justin is about to retire in a few months. He has a high-paying, stable job and owns at least two small houses. However, the 65-year-old financial analyst does not have a retirement fund that will allow him to live his golden years bountifully. How ironic.

If Justin has no savings at all, either he needs to earn the money for it or depend on his Social Security, which stands at $1,335. The only way to survive with this meager amount of money is to live within – or below – his means.

Ditching any debt, healthcare costs, mortgage, debt, and other expenses won’t be enough to get through the golden years. Selling all his assets off won’t compensate, either. Aside from living within the budget, Justin also needs to downsize his lavish lifestyle. Meaning he should forego additional expenses such as gym membership and cable subscription, as well as moving into a smaller abode.

Or if he wishes to maintain that lifestyle during retirement, he needs to go back to work or get a part-time job. That is not bad at all especially if Justin loves what he is doing. Thanks to Internet, the upsurge in the global workforce has made it easier for seniors to work at home. Also, retailers prefer retirees as they tend to be loyal and reliable.

Justin can also resort to taking on a roommate. He can look into this option if he does not mind sharing space with someone else. But if he prefers living alone, then he can consider reverse mortgage. However, this is a costly, perilous decision.

Retirement may be off the table if Justin is not willing to adjust his lifestyle and make some sacrifices. Many people opt to forget retirement and work for as long as possible because they do not have enough money for it. But working longer will affect your overall health and wellness.

That is what the senior years will look like for the financial analyst if he does not have a retirement fund.