6 Things To Do If You Actually Run Out of Retirement Savings in Retirement

Did you know that 63% of retirees worry more about running out of money than death? Inflation , a volatile stock market and housing market shortages are three factors eroding retirees’ savings. So what happens if you do run out of money? What options do you have?

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You might be surprised to learn that you have more options than returning to the workforce. In this article, we’ll cover six things to do if you actually run out of retirement savings in retirement, helping you deal for whatever is thrown your way.

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Make Lifestyle Changes

Running out of retirement savings doesn’t mean you are down to a few pennies. In fact, most retirees can predict their savings depletion rate well before they risk having no funds. The first thing you want to do is look at your income and spending. How can you cut back?

Maybe you don’t need that newly financed vehicle, or you can cut back on how often you order takeout each week. Renegotiate every aspect of your life, from your monthly insurance premiums to your phone bill. Making lifestyle changes can help close the deficit between the money you receive and spend each month.

“​​Review your expenses and make necessary cuts,” says Lauryn Grayes, founder of Wealth Gems Financial Solutions . “Look for ways to lower utility bills, eliminate unused subscriptions, and cut excess spending. Making minor adjustments freed up $300/month for one client, enough to afford essentials. Small changes add up significantly over time.”

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Rework Your Portfolio

Your portfolio allocation plays a major role in the income you receive each month. For example, if your retirement savings are heavily invested in total market funds, like a mutual fund or index fund, they might not provide you with monthly income. Although these are great for appreciation, you may want to consider converting your portfolio into investments that produce monthly cash flow.

For example, you can sell a portion of your portfolio and invest in dividend stocks. The growth of these stocks might be less, but you now have access to more monthly cash flow. In addition, consider purchasing real estate investments. The right rental property can provide you with monthly cash flow and open the door to tax benefits.

Start Selling Assets

If your retirement savings are almost depleted, it’s time to start selling your assets. Can you downsize your house? How about trading in your new vehicle for a reliable used one or taking advantage of public transportation? Do you have a commodity collection that you can sell? Selling items that aren’t necessities can generate income to get by.

“If selling your home isn’t an option — or if you prefer to stay in your current residence — consider leveraging your home equity through a reverse mortgage,” says Dennis Shirshikov, head of growth at Summer . “A reverse mortgage allows you to convert part of your home’s equity into cash without having to sell or move out. This can provide a steady stream of income that can be used to cover everyday expenses or even pay off existing debt.”

Look Into Government Programs

The government doesn’t want to see the elderly struggle, which is why there are various assistance programs. Can you secure low-income housing? How about qualifying for food stamps or lowered health insurance premiums? Qualification for these programs will depend on your location and income level.

You may even be eligible for Supplemental Security Income (SSI), a program for seniors over 65 with limited income and resources. You can apply for this program and more when you enroll for retirement benefits.

“Explore income-based support programs you may now qualify for,” added Grayes. “Don’t let pride prevent you from applying for Medicaid, food assistance or utility bill help. These programs exist for situations like this and every dollar helps when times are tough.”

Tap Into Your Life Insurance Policy

If you already have a life insurance policy, look into your policy’s specifics. Some policies allow you to access your death benefit while alive to pay for medical expenses. Medical expenses, like long-term care, doctor visits and premiums, will be some of your top retirement expenses.

In addition, certain life insurance policies can be sold for a lump sum of cash. This can be a viable option if you need funds to live on. The amount you receive from the sale will be based on your policy’s length and the cash value amount.

Pick Up a Side Hustle

For retirees short on savings who are still active and able, picking up a side gig can bridge cash shortages. A side hustle doesn’t have to be labor-intensive or full-time. You could become a greeter at a retailer, walk dogs in your neighborhood, work at a library or make handmade items.

Starting a side hustle gives you income to support your retirement lifestyle. Earning a few hundred dollars per week could make a huge difference in your retirement outlook, allowing you to save more for the future and cover your needs now.

The bottom line is you have options if you run out of savings in retirement. To find the best solution for your situation, consult a financial planner or advisor. These professionals will help you find viable strategies based on your specific needs.

This article originally appeared on GOBankingRates.com : 6 Things To Do If You Actually Run Out of Retirement Savings in Retirement