Top 7 Ways to Increase Your Retirement Income

You may have your social security money, pension, retirement savings and other sources of retirement income, but these may still be insufficient especially if you still have other regular expenses to finance after retirement. For instance, you may still need to send your last child to college or finish paying off your mortgage or car. Since you have already stopped full-time work, you do not have a regular salary payment anymore. However, there are ways that you can still increase your retirement income. 

Here are the top 7 things you can do:

     1. Do part-time work

Getting a part-time job will help you supplement your retirement money. Getting a part-time job is not just about increasing your income. It also allows you to keep your social interaction healthy and avoid being bored. This will help you maintain a sound body and mind as you get older.

      2. Avoid getting early distributions on retirement accounts

Most retirement accounts such as a 401K allow you to withdraw your retirement money at 59½ years of age without having to pay penalty taxes. However, if you try to take your money at an earlier age, you will significantly reduce the amount of money that you will eventually receive when you reach retirement age. It is always best to try and wait until you can access your money tax-free.

      3. Get a reverse mortgage

A reverse mortgage allows you to receive money based on the equity in your home. This can give you a retirement income that may be used for regular living expenses or indeed to supplement any retirement pension plan income you may have.

      4. Have your own real estate income

You may consider acquiring a rental property. This could be a small house or even several apartments to rent out. It will provide you with a regular income form the rental payments and the property may also increase in value over a period of time. However, you should also consider any expenses involved such as maintenance, legal fees or administration of the property.

      5. Limit your expenses

Since your retirement money is fixed and cannot be easily increased, saving money is a good way of making your retirement money last longer and go further. Saving may also give you extra money for your basic expenses. Reducing your expenses may mean having only one car, using less electricity and water and cutting back on any shopping-sprees. You can also look for sales as well as use discount coupons to make your regular purchases; this can produce substantial savings over a period of time.

6. Life annuity

An annuity is a financial product that gives you a guaranteed income once you retire. You can set up your annuity earlier in your life to take advantage of making lower monthly payments or buy an annuity when you retire with a lump sum payment.

     7. Invest your money in stocks

Another effective way to increase your retirement income is to invest your money in stocks. You may get a high return on the money you invest. However, it is not guaranteed.

Some retirees buy lottery tickets for the chance to win big money, but this is not exactly a great investment strategy. After all, you may never win, or win only a small amount of money. The money you spend on lottery tickets could be better used fro your basic living necessities.

Are you retiring soon or have you already retired? How do you plan to increase your retirement income?

This is a guest post contribution by Amarendra who develops content for www.opendoorloan.co.uk, a site that has vast information about quick loans.

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