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Retirees outliving their retirement income have options 2010-05-19 One of the biggest fears of retirees is outliving their savings. Those who find themselves seeing their hard-earned income slipping away faster than they intended can take measures to get back on track, according to Investopedia. The most practical option for Americans who feel they may run through their income is to reduce spending, the website recommends. Creating a budget and a list of expenses is a good way to examine how much they really need versus how much they are actually spending. Annuities are becoming an increasingly popular retirement tool because they allow retirees to place a lump sum into the account and receive lifelong payments in addition to interest, depending on the annuity type, Investopedia reports. Retirees are less likely to spend as much when receiving monthly payouts as opposed to holding a lump sum. Cash-strapped retirees who have paid off their mortgages may also consider a reverse mortgage, which will allow them to tap into their home equity, according to the website. Reverse mortgage loans are typically repaid when the borrower moves or passes away. It is never too late to plan for retirement and retirees who are concerned about their savings may benefit from consulting a financial advisor.  |
