Based on data from the 2021 U.S. Census Bureau, roughly half of Americans between the ages of 55 and 66 have either no or minimal retirement savings. While many seniors look forward to enjoying retirement, it can also be a scary prospect because it means living on a fixed income.
If you do not have any savings, it can feel impossible to retire.
However, there are some tips you can follow to prepare for a successful retirement, even if you do not have any sort of savings.
If you do not have a retirement account but still want to stop working, it’s important to be careful and frugal with your money.
One way to cut down on your living expenses is by downsizing your home. If you are retiring, you might have much more freedom in choosing where you live, since you likely won’t limit yourself based on work.
Many retirees have just one other individual living with them, which can make it easier to transition into a smaller, less expensive home.
There are many senior retirement communities with affordable rates, which can significantly cut down on your average living expenses while also giving you a comfortable community to live in.
These communities typically have meal and vehicle assistance options as well, which further cuts down on your monthly spending.
If you are determined to stay in your current home, you may be able to get some value from it. A reverse mortgage allows you to stay in your home and receive equity from your property.
The exact requirements vary depending on your state. Most require you to be at least 62 years of age to qualify.
Once you get a reverse mortgage, you must live in your home as your primary residence. The loss of equity can hurt the overall value of your home, but if you are planning to stay the rest of your life, this will not impact you.
Healthcare Saving Programs
A common large concern for senior citizens is medical expenses. The older you are, the harder it may be to stay healthy. Even if you do not have any existing medical conditions, you may need vitamins or other supplements.
There is also the cost of routine medical visits. Fortunately, there are many healthcare options available for senior citizens.
If you are 65 years of age or older, you are usually eligible for Medicare coverage. Depending on your finances, you might also qualify for Medicaid insurance as well.
Additionally, each state runs their own medical assistance program, and there may be local charities or nonprofits to help with senior medical costs.