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How to retire without a big nest egg

As the population ages, inflation escalates, and income resources become more uncertain we find retirement may be harder than ever to attain (at least in a traditional sense).

According to a study by the Employee Benefit Research Institute, in 2020, 49% of households with individuals between ages 55 and 64 had less than $100,000 in retirement savings. The National Institute on Retirement Security found that the average retirement savings shortfall for Americans between 55 and 64 is $113,000. These statistics speak to the fact that many older adults are financially unprepared for retirement and need to find ways to create income.

Retirement is no longer a one-size-fits-all concept, as a result, many older adults are redefining retirement as a time of continued growth, learning, and creative income generation.

Many are delaying retirement, working part-time, freelancing, starting businesses, or using home equity (reverse mortgages and equity loans) to create income. However, creating income from these sources may take time and can be especially challenging for those who may need to learn new skills, adapt to new technologies, and build a new network.

Consider these steps to determine what to do about starting a new business or career. First, explore interests and passions to determine what to do next. Second, conduct market research to determine different product or service demands. Third, develop a business or career plan to outline goals and strategies that utilize experiences and interests. Fourth, seek advice from mentors, coaches, or other professionals who provide guidance and support. Fifth, join social media groups with like-minded individuals.

Consider the risks and rewards of starting a new business or career. It may be a way to create income and stay engaged, but it can also be risky and time-consuming. Always balance the desire for income with the need for flexibility and work-life balance.

It's important to remember that retirement doesn't have to mean the end of our careers or our passions. We can continue to work and pursue our interests, while also living the retirement lifestyle we want. Willingness to try new things may take creativity, but anything is possible with the right mindset and approach.

So, as you approach retirement age, it's crucial to plan ahead and make wise choices to ensure that you have enough savings to support yourself throughout your retirement years. Take heart if you're over 55 and unsure about your retirement plans. Many people in this demographic are independent-minded, experienced, educated, and eager to make an impact on the world. There are many options for us to explore, and with a little effort and determination, you can create a truly fulfilling and meaningful retirement.

Check out the Facebook group This group is a place to learn, and share information, ideas, and passions of Baby Boomers looking to start planning their “retirement life” and income hustle. #makenewrules #boomerprofit

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