Consider stretching your retirement savings by doing this

The three legs of the “three-legged stool” for retirement income, made up of Social Security, a pension and the worker’s retirement savings, have been wobbly in recent years, but it might not be. not so if he had a fourth leg – extra income in retirement.

Retirement tip of the week: When thinking about the income you will have in retirement, try to find a Additional reliable source of income, whether it’s a part-time job, consulting or the occasional gig. It will keep your retirement accounts full longer.

Retirement was once seen as a time when a person left the workforce for good and then spent their days with their grandchildren or traveled before becoming too ill to do so.

Read: I took Social Security at 62 and now I regret it. Is there a way to increase my Social Security benefits?

But the landscape has changed. People don’t wait until they’re 65 to retire, live much longer, and there’s no clear plan for when or how to retire.

To see: A simple thing to do in your 50s to add 5 years to your nest egg

Whatever the reason, the more money going into a bank account during retirement, the less money is taken out of a 401(k) or IRA – and that means those dollars can last for years, generating more returns and interest. the path. Since many employers have moved away from pensions and Americans sometimes underestimate the amount of money they need for retirement or don’t believe Social Security will be there in their old age, that fourth leg could be a saviour.

Want more practical tips for your retirement savings journey? Read MarketWatch “Retirement Hacks” column

For retirees who can’t work or just don’t want to work, try finding other ways to stretch your retirement accounts. Depend more on social security or a pension, or lead a modest lifestyle in the early years of retirement so you can take out less money. During periods of volatility – as the stock market is currently experiencing – withdrawing less could help preserve a 401(k) because it prevents the sequence of return risk, which is the possibility of running out of money depending on the order in which the withdrawals were made.

One of the benefits of working, even temporarily, in retirement is the flexibility and control that comes with it. If a retiree has saved enough money for the future, it doesn’t matter if he accepts a job that earns less than he did before (for example, if he is considered a beginner in an entirely new field). Retirees may also be able to control how many hours per week they work.

Also see: How to grow your retirement savings

There are plenty of job openings in retail, hospitality and education, according to a study, or a retiree can also try setting up a shop on Etsy or Instagram to sell their artwork or services. .

Other avenues include volunteering, which can eventually lead to part-time employment, or networking with colleagues and friends in their industry of choice. AARP has a job site, but there are many other job sites available.

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