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Some people have no choice but to retire without saving money. Here is what to do if you are one of them.

Senior couple on a walk in nature(Photo: Getty Images)

We are told that we are supposed to save money – as much as possible – for retirement, since the only social security will not be enough to pay our bills. But what if you are in your sixties, your salary offers virtually no margin of savings and you know you can not continue working full time for years?

Although retiring without a nest egg is certainly not ideal, if that is the situation you are facing, you should know that it can be done. Here's how:

1. Wait until 70 to file for social security

Maybe your full-time income does not save a lot at the present time and working a small side to make extra money is simply not in the cards now. If that is the case, but you are able to stay at your job up to age 70, this can increase your retirement income automatically by increasing your social security benefits.

For each year, you withhold the deposit of benefits after the retirement age (which, depending on your year of birth, is 66, 67 or 66 and a number of months), you will get an instant boost of 8% this will remain in effect as long as these benefits are paid. This means that if you are considering a full retirement age of 66 with a monthly benefit of $ 1,200, working up to 70 will increase your annual income by $ 4,608. So even if you do not technically save this money in a pension plan, you get the same result.

2. Get a part-time job once you leave your full-time job

It may not be possible to work head-on when working full time. But once you've left that 40 hours work or more a week, you might find the idea of ​​working a few hours a week relatively manageable, even if you're older and your energy level is not up to it. Is not what he used to be.

Imagine that you are able to earn $ 15 an hour and that you manage to spend only six hours of work a week. That's another $ 4,680 with which to work each year.

Remember, the work you do as a senior does not have to be a job in the classic sense. You can enjoy a hobby that you like, such as gardening or baking, and make it an opportunity to make money. And even if the extra money will certainly help, just as importantly, working a bit during retirement will give you something to do with your time, thus preventing you from spending money unnecessarily.

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3. Reduce your retirement budget as much as possible

There are some retirement expenses that are virtually unavoidable, such as housing and transportation. But that does not mean that you can not take steps to reduce your major expenses, extending your income to the extent possible. You can always see to reduce your living space, get rid of a vehicle you no longer need now that you do not switch to a full-time job or move to a cheaper part of the country for reduce your bills overall.

In addition, you may consider relocating to a country where social security is not taxed if your benefits are your main source of income. In fact, the majority of states will not tax your benefits, but you will have to consider the cost of living before moving to keep more of that money.

Retiring without a nest egg will not be easy, and it is certainly not the recommended method. But if that is the situation you are facing and the extension of your career for many years is not an option, there are ways to make it work. You may have to compromise by living an extremely frugal lifestyle, but it's still a much better bet than running out of money in your old age.

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Faced with a wave of retirements and a growing labor shortage, many employers are trying to retain their older workers, persuade some to return after retirement and even recruit retirees from the workforce. other companies.

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