The COVID-19 pandemic has not spared retirees. Many are feeling the pinch. So what should you do if you have little or no savings in retirement?
According to a recent study by Personal Capital, about 25% of retirees interviewed said the impact of the pandemic has made them likelier to return to work. But experts warn that the current economic state may worsen the situation for many retirees looking for work.
During uncertain times, older people are more likely to be furloughed or laid off. For instance, in April this year, a study by the Transamerica Center for Retirement Studies shows that while 16% of baby boomers were furloughed, only 8% of Generation X and 11% of millennials were affected.
This means retirees, especially those with little savings must think outside the box to maximize their lives and money. The good news is that you won't be the first one. In this blog post, we share five tips deployed by seniors who lead a comfortable lifestyle with little savings.
Trim Your Costs Brutally
Many seniors admit that retirement is a time to live lightly and maintain the lifestyle you want. But that can be extremely difficult when your living costs are high.
So if you want to live well and worry less about the little savings you have, find ways to spend less. Be ruthless when eliminating expenses.
For starters, look at big costs such as housing and car payments because they will be more stressful. It may be wise to sell your big house and get something smaller. After that, rein in on smaller costs such as TV.
While at it, keep in mind that living below your means does not necessarily mean you're leading a boring life. This will help you see every strategy positively.
Start A Side Hustle
As mentioned earlier, many retirees may want to return to work. But with the high unemployment rate caused by the pandemic, many of them may not find work. So instead of spending so much time and money finding part-time jobs, why not start one?
Starting a side hustle in retirement doesn't mean you have to spend thousands of dollars. You just have to:
Use the skills you have
Although it may be tempting to start something different from previous line work, it is cheaper and smart to use the skills you already possess to start a side gig. You don't have to do exactly what you were doing.
For example, if you were managing a business, you can be a consultant. So many businesses are looking for ways to bounce back from the pandemic, and they're looking for ways to do so at minimal costs.
Alternatively, teach what you know. Many retirees have carved a niche for themselves as coaches or trainers. You can even do it online.
Solve Problems In Your Immediate Community
Sometimes it can be extremely difficult to monetize what you're passionate about. Or you don't find your skills useful after retirement. If that's the case, find problems facing people in your community and solve them. For instance, many seniors are offering pet sitting services, renting out extra rooms, and offering storage services.
Consider Shared-Living With Your Adult Children
Shared-living is gaining popularity like never before. According to Pew Research, about 31% of American adults live in a share-household today as compared to 27% in 2004. And older parents or retirees moving in with the kids make up a much larger portion of the shared-living.
So if nothing else seems to work out, it may be wise to move in with your adult children. Just be sure to contribute living costs so you don't strain them financially.
For instance, you can buy food once in a while, pay for electricity, offer babysitting services, and more. Apart from reducing your retirement costs, this will help you bond with your loved ones.
Evidently, many retirees with little savings are feeling the pinch from the COVID-19 pandemic. With few job opportunities and tough economic times, many have to be creative to enjoy their retirement. We hope these tips help you worry less about money for now.