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Tips For Obtaining Extra Funds in Retirement

The Good Old Days are Gone

Years ago when a person hired into a job it was generally until the age of retirement, 30+ years. Companies gave pensions to workers to encourage longevity with the company. The retiree had a 401K, CD’s paying 15%, stock and bonds, and other high interest savings accounts. At retirement they lived off of monthly interest, in addition to Social Security. Retirees also had health, dental and vision insurance through that company until the day they died. People had their homes paid for by the time they retired.

What is Happening to the Retired Person?

Many companies have long pulled health insurance from the retirees, and pension plans are rarely available anymore. CD’s are paying next to nothing in interest. Simple interest bearing accounts have decreased from a hefty percentage to between 0.5% – 1% if one is lucky. These interest bearing accounts that people counted on as income no long exist for many. A good share of retirees have mortgages until the day they die. That is if they can continue to pay for their mortgage and the bank does not foreclose on them. Even though most retirees obtain Medicare to help with health costs, the governments will deduct one common price for Medicare and this year it is a little over $90.00 a month. Many retires cannot afford a supplemental medical plan so do not get their medications or skip doses because they cannot afford the cost of their medications. Many retirees are not finding this to be their golden years like their grandparents. In fact, many retirees are finding that it is harder to live from month to month. Food bank lines are longer than ever these days.

Where Can the Retiree Obtain Extra Funds?

In this current economy retirees are more prone to need to raise extra money.

  • One good way to obtain extra funds is through a reverse mortgage, that is, if you have a good-sized equity in your home. The bank will make payments to you every month and they can add this income to your Social Security. Unfortunately, if you have little equity in your home then a reverse mortgage will not work.
  • If you can’t afford to pay your mortgage, there are government subsidized apartments you could check into. Monthly rent is calculated according to how much income you have.
  •  Another way to obtain funds indirectly is weekly food banks. If the retiree visits 2-3 food banks every week you could get the majority of their groceries even one food bank can result is significant savings.
  • Retirees are allowed to make $1,200 from a job per month. A part-time job could bring in extra funds if you are able to work.
  • Retirees can also think up some sort of business plan and work from home. Doing this will enable you to claim a portion of all expenses, such as mortgage, utilities, and so forth at tax time, reducing taxes. This would possibly give the retiree extra funds though tax returns.
  • Some retirees return to school and start a new career to bring in extra capital.

 

People who have planned for retirement are still finding if difficult to make ends meet. Some of these ways to earn extra income monthly may be helpful to the retiree.

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