Retirees Can Have A Fixed Income Source Without A 401(K) Or IRA: Know Details

Retirees often need an extra income source besides their retirement benefits. The majority of retirees draw their income from the Social Security benefits. The monthly checks provide a monthly amount for eligible beneficiaries. GO BankingRates reports that nearly 40% of US citizens benefit from Social Security. Individuals qualify for the retirement benefits after 62; however, they receive a lower monthly amount at this age. Retirees applying late receive a significantly higher amount. Retirees depend upon Medicare to cover their health expenses.

Retirees Can Have A Fixed Income Source Without A 401(K) Or IRA: Know Details

Retirees Need To Reduce Minor Expenses

The Social Security recipients often fall short of the required amount for additional savings; they need a supplemental income source for smooth living. Retirees without a personal home need to cut down on their miscellaneous expenses to save more. Reducing additional costs will help them save money for a rainy day. Individuals can sell their old belongings, including furniture, jewelry, and electronic accessories, for a satisfactory amount. Retirees can utilize their unique skills to earn extra money. Creative skills bring decent money, and those withdrawing or musical skills should provide services or sell their artwork.

Reverse Mortgage Is Handy During An Emergency

The homeowners can opt for a reverse mortgage to reap significant benefits; they need to handle the data carefully to prevent money loss. Retirees in urgent need of money can borrow loans from banks through a reverse mortgage in exchange for equity in their property. Retirees can repay the loan in the future to reclaim the equity. Experts strictly prohibit everyone but senior citizens from adopting this strategy. Many individuals can lose their belongings due to excessive greed and desire for quick money. A reverse mortgage is a double-edged sword, so individuals must exercise caution.

A reverse mortgage is an appropriate option when an individual runs out of every other savings plan and is in an emergency. GO BankingRates reports that several retirees remain homeless in their old age due to misuse of reverse mortgages. Homeowners should seek expert assistance and look for all possible alternatives before choosing a reverse mortgage. The post-retirement life is extra-sensitive and working individuals should plan their retirement savings earlier and have sound income plans.