Look into annuities. These insurance products offer a guaranteed stream of income in retirement. Conners recommends fixed-indexed annuities, which are tied to the performance of a market index such as the S&P 500. The rate of return will be capped, so they might not perform as well as the index to which they’re tied, but they don’t lose value when the market drops, he says.
Get higher interest rates on cash accounts. As of late August, the annual percentage yield on savings accounts averaged 0.63 percent, according to Bankrate. But Mannino says you don’t have to settle for a rate that doesn’t keep pace with inflation. You can find short-term certificates of deposit (CDs), money market accounts and high-yield savings accounts with interest rates of 4 percent or higher.
Withdraw funds at a conservative rate. You might have a large nest egg, but to ensure that it will last decades — especially during periods of high inflation — you need to know how much you can afford to withdraw annually from your savings to avoid running out of money. For example, if you are in your early 60s and have $1 million in retirement savings, “a 4 percent distribution rate is as much as you want to take,” Mannino says.
Boost your income
There are plenty of ways to generate extra cash in order to supplement retirement savings, without returning to the 9-to-5 grind.
Sell what you don’t need. You can cash in on collectibles, sell gold jewelry or sterling silverware, or make money off furniture you can’t take with you when you downsize. “Look around your house — everything is worth something to someone,” Mannino says. (Your children might thank you for leaving them with less.)
Put underused assets to work. “A spare room, an ADU [accessory dwelling unit] or even garage storage can create additional income,” Krueger says. Websites such as Airbnb, Neighbor, RVshare or Swimply make it easy to rent out your home, garage, recreational vehicle or swimming pool, respectively. Or you could get paid for letting others borrow your vehicle through a peer-to-peer rental platform such as Turo, Free2move or Getaround.
Find unclaimed assets. One in 7 Americans have unclaimed checks, financial accounts, safe deposit boxes or other property that has been turned over to states for safekeeping, according to the National Association of Unclaimed Property Administrators. You can find out if you have unclaimed property in states where you’ve lived or worked at MissingMoney.com, where the average claim is $2,080.
Pick up part-time work. You could leverage your professional skills to find freelance or consulting work. Websites such as Catalant, Braintrust and FlexProfessionals can help you connect with companies that are looking for a professional with your skills. Or you could find part-time work that aligns with your passions. “If you love golf, you could work at a pro shop,” Conners says.
Delay claiming Social Security. If you haven’t already started collecting Social Security, there’s a way to boost your monthly benefit. “Delaying Social Security is one of the best financial decisions available,” Krueger says.
Delayed retirement credits start accumulating the month you reach your full retirement age (FRA), which is 66 and 10 months for people born in 1959 and 67 for people born in 1960 or later. For every month from your FRA until age 70 that you postpone filing for benefits, Social Security increases your eventual benefit by two-thirds of 1 percent — a total of 8 percent for each year you wait.