How to Avoid Working One More Year


A popular way to add more money to your retirement accounts is to work one more year. However, many people are also forced to work one more year because they’re unsure if they have enough to retire on. One year can become two and then five, when will it stop? The answer is to withdraw conservatively among other things.

Follow these five tips and never work another year of your life.The traditional 4% rule may not be the best option these days, especially if you have the bulk of you retirement savings invested in low-yield accounts. Even so, there are ways to save and security measures you can put into place so that you can retire on time and still maintain a comfortable lifestyle. Right now with interest rates the way they are and considering inflation, the new 4% is 3%. If you don’t have that much money saved, 3% can be pretty hard to live on and working one more year can start to sound pretty good, but don’t get too hasty.

To start with, write up an expense plan to see where most of your money is being spent. Try cutting back on some unnecessary spending. You might find that you’re able to live comfortably without those extra costs. If you’re over 50, take advantage of your age and add a little bit more to your retirement accounts every year. This might make things tight for a while, but you won’t have to work an extra year when retirement finally rolls around.

If you’re getting ready to retire now, think about a few ways to supplement your annual withdrawal and social security. That might mean a part-time job or even making money off of your hobbies. If you have no major plans for relocation or traveling extensively after retirement, a part-time job can help stave off boredom and still allow you to have plenty of free time.

Another possible income opportunity that doesn’t take too much time is physical real estate. Being a landlord does take some work, but not 9-5 every day type of work. Investing wisely in real estate can really make an impact on your monthly income and allow you to withdraw less from your retirement accounts so that your nest egg never runs dry.

Though there is really no way of knowing if your hard earned money will last the rest of your life, careful planning and a conservative lifestyle will greatly improve the chances that you will never be left penniless.