Though we’re told to prioritize retirement savings during our working years, it’s estimated that nearly half of U.S. households have no money set aside for the future. Now, if you’re in that camp but still have a number of working years ahead of you, there’s plenty of opportunity to catch up. But what if you’re well into your 60s without a dime saved?
So you’ve reached your full retirement age for Social Security purposes, and you’re gearing up to call it quits. Not so fast. Though you may not have any savings, or a salary that enables you to save, if you continue to work a bit longer, you’ll have the option to hold off on filing for Social Security, thus boosting your monthly benefits.
For each year you delay benefits past full retirement age, your monthly payments go up by 8% until you turn 70, at which point the incentive to wait runs out. So let’s assume your salary is just enough to pay your bills, but nothing more. If your full retirement age is 67 but you hold off on benefits until 70, you’ll wind up collecting 124% of the amount you were initially entitled to. And that’s a good way to help compensate for absent savings.
2. Work part-time in retirement
Maybe you no longer have the energy or option to continue working a full-time, 40-hour-a-week job. But if you’re able to work part-time as a senior, that income, combined with your Social Security benefits, could be enough to get by on.