Can You Retire Without Much Income?
Well, let’s just toss aside the idea of making up our retirement accounts for awhile. Studies have shown that most boomers have endured severe declines in retirement accounts, and these declines will not easily be made up. The combination of a decline in the financial markets, high baby boomer unemployment, and the loss of home values has been damaging enough to set most of us back a little or a lot.
Still, we are boomers and not a generation to fall into despair over every setback. Our grandparents weathered the big one (depression). Our parents won the big one (WWII). A little thing like a GREAT RECESSION just gives us a chance to show we are worthy heirs to their legacy.
Look, I am not trying to make light of very real problems. I am just trying to maintain perspective. I would also like to give some examples of some very real ways that retirees have coped with a loss of income and retirement savings.
Coping With Small Retirement Incomes
Low Income Retirement Housing
Retirement housing does not have to be expensive, and if you find the right place, it can be pretty cheap.
Federally Subsidized Housing For Seniors – All across the country, you can find appartment complexes which charge residents according to their income because they are subsidized by the federal government. I have seen several of these in my own community, and the ones that I saw had nice one or two bedroom apartments in secure complexes. They may also provide other services, like a bus for shopping and medical appointments, community activities, and field trips.
Home Shares – Lots of currently retired adults have explored the advantages of home sharing.
For example, let us say that Mrs. Bennett was left with a home that has been paid off, but not much income to afford upkeep. Ms. Darcy has some income, but is not a homeowner (her older male sibling inherited Pemberly, of course). Mrs. Bennett could offer an extra bedroom to Ms. Darcy in return for a modest rent so she can make sure she has money to fix the air conditioner and pay taxes. (And yes, I just watched a marathon of Pride and Prejudice last week-end).
Joking aside, taking in a boarder or a room-mate is an effective way to generate some extra income, plus many other people who are widowed or divorced enjoy having company at home.
Use Existing Assets For Income
This may be tough for some older people to accept, but it may be time to leave home. If paying for a home with associated repairs, insurance, and taxes is a problem, maybe it is time to sell it or rent it out. This does not make sense for everybody, but collecting rent on the family home and downsizing to cheaper accommodations can work out well for many. Or sell the house and use the money to fund an annuity or other retirement investment to generate more income.
Come Together! Right Now! Over the Over50Website.com. Also check out our latest project, BeHappyYourself.com.
|
Related articles:
Very good article. I know many people who are now downsizing and renting. We were brought up to view renting as a waste of money, but in many cases it can be a financial life-saver.
Suzann
http://www.women-lifestyles.com
I agree, Suzann. In my opionion, people always pay some kind of rent – property taxes, repairs, insurance, etc. – Which is better really depends upon the situation. Thanks for stopping in!