This video discusses what to do if you have no money for retirement and it’s almost time. The average person has less than $10,000 saved for retirement according to the Federal Reserve Board’s Survey of Consumer Finance. So while you are not alone, that does not solve the problem. This video outlines the critical next steps you need to do RIGHT NOW if you are retiring with no money.
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We work hard throughout our lives, always keeping in mind the notion of eventually retiring and enjoying a comfortable life in our golden years. However, the reality may not always align with our expectations, and there are times when we find ourselves facing the daunting prospect of having no money for retirement. While this situation may be intimidating, it’s important not to lose hope. By taking action and making smart decisions, you can still make the most of your retirement years and ensure financial stability. It’s time to face the challenge head-on and find ways to secure a comfortable future, even without a substantial retirement fund.
1. Assess your current situation:
The first step when facing a lack of retirement funds is to objectively evaluate your financial situation. Take stock of your assets, including any savings, investments, properties, or other valuable possessions. Calculate your monthly income and expenses to get a clear understanding of your financial capabilities and limitations. While this assessment may lead to acknowledging the lack of resources, it will also help you identify potential areas for improvement.
2. Trim unnecessary expenses:
Once you understand your financial position, look for ways to cut down on non-essential expenses. Prioritize your spending and distinguish between needs and wants. By eliminating unnecessary costs, you’ll free up some funds that can be redirected towards savings or investments.
3. Create a budget and stick to it:
Developing a sound financial plan is crucial in this circumstance. Design a realistic budget that aligns with your income and expenses. Calculate how much money you need to cover your essential needs each month and allocate funds accordingly. By adhering to your budget, you create an effective strategy to save money and develop a disciplined approach to your finances. Prioritize saving as much as possible, even if it’s a small amount initially.
4. Explore income-generating opportunities:
One of the most effective ways to overcome the issue of no retirement funds is to find additional sources of income. Consider taking up freelance work, exploring part-time opportunities, or engaging in a small business venture. These avenues will not only contribute to your immediate financial stability but also provide a source of income during retirement.
5. Educate yourself about investments:
While building a substantial retirement fund may not be possible in the short term, educating yourself on investment options is always valuable. Speak with a financial advisor who can guide you towards suitable investment opportunities that align with your risk tolerance and financial goals. Consider long-term investment options such as stocks, bonds, or real estate, as they have the potential to provide additional income and grow your wealth.
6. Plan to work longer:
Delaying retirement and working a few more years can greatly impact your financial situation. It allows you to accumulate more savings, reduce reliance on Social Security benefits, and bridge the gap during retirement. Additionally, working longer provides an opportunity to stay active, maintain mental stimulation, and potentially explore new career paths or hobbies that can bring joy and fulfillment.
7. Tap into alternative retirement options:
If traditional retirement approaches seem unattainable, consider looking into alternative retirement options. Some countries offer retirement incentives, lower cost of living, or pension arrangements that may be more favorable to your financial situation. Look for countries or regions where you can stretch your resources further and enjoy a better quality of life.
In conclusion, facing the reality of having no money for retirement can be distressing, but with proactive steps and the right mindset, you can still pave the way for a comfortable future. Assess your finances, cut unnecessary expenses, create a budget, explore additional income opportunities, and educate yourself about investments. Consider delaying retirement, tap into alternative retirement options, and most importantly, stay positive and determined throughout this journey. It’s time to take control of your financial future, no matter the circumstances.
There's a bunch of retired guys with no savings, less than $1500 SS check, many less than $1000, living in SE Asia, mostly Philippines. Living very well, many right on a beach, with a beautiful Filipina in her 20's. Doesn't seem that bad.
Thanks for your video. It's great to see a video addressed to the people who need the most help, rather than one saying, "If you only have half a million dollars saved for retirement!" One additional thing I did was to have any raises I got in the last two years of work go directly into an IRA. I also managed to get my outgo down a bit and had that money go directly into the IRA as well. Not everyone can afford that, but when less comes in your paycheck, you are less likely to overspend, so it is good for anyone who has a little to spare.
Thanks to the retirement investment program from STEPHANIE KOPP MEEKS ROI group, I can enjoy my golden years without worrying about money. They have a flexible and transparent approach that suits my needs and goals.
I SWEAR TO GOD AT THIS TIMESTAMP! There was a "FLY EMIRITES AIR" commercial on this video that showed people SPENDING MONEY FOR AN EXPENSIVE TRIP!
SCHMIDT! Why do you allow this? Did you take that flight? Are the "like & subscribes" paying for the hypocrisy?
Hmm.
NO money?
12 months.
Pay off all credit cards and your car loan. Sell most of your possessions on eBay. Keep the car. Move into a studio apartment in a safe but cheap area/town/city/state.
If you have a house sell it and keep any proceeds. Yes you can rent rooms but people are dodgy in 2023.
Take the $1k/month SSA @ 62 and keep the $50k [?] as a rainy day fund.
Alternatively you can sell it all and move to another country.
Some places you can live on $700 a month but this requires the soft skills for living internationally.
Dan Aykroyd look alike much? Thanks for the info.
I paid off my mortgage last year – no debt! It sure helps. Maxing out my savings, take home the last year is about 15% less than my SS / Pension total. Retirement scheduled for December – before the stress takes my health. I do get nervous sometimes – and then realize that I was able to move a little extra money into a brokerage account.
They really should change the catch up clause to include: those who have been within the poverty guidelines should be about to increase the catch up amount to the current full annual amount for each year they met the poverty criteria. For example: if for 5 or 10 years of your working life, you met the poverty guidelines criteria, you should allowed to contribute an additional 27,000 per year for each of those years.
If someone didn’t have the means for several years, but now they finally do, why further limit, prevent and punish them? It benefits everyone to let them make up more of they can now. Let’s face it, not many people will have the means to put more than 27k away each year, but if some are able to reduce expenses, get an extra income and can posit aside more, if they truly couldn’t save in the some past years, let those folks truly make up for it if/when they can. Put the limits on those with a lot, but not those who never had much.
Some people commit a crime to go to prison because they will be given three meals a bed and free medical. Gym time and school classes
I'd be curious if anyone has had success using Upwork as side hustle. From what I have seen, most projects require a time commitment that precludes having a full time job.
Growing up poor in rural MN a person does not require much to get a lot of enjoyment out of a modest retirement.
The bottom line; when considering 50% bidenflation & a 30% loss of value in your 401K it’s not likely that anyone can retire before 65
Bwahahaha. I’m totally judging.
Another great brief and informative video as usual. A question I always have is: was the "average" cited the mean or median average? I assume the Social Security numbers are mean averages. Because of the ever increasing income gap in our country, neither the mean or median average really captures typical incomes in the U.S. It's obviously not the mode average, sometimes called typical value, or the income number would be much lower. If you wanted to make individuals feel a bit better about where they're at financially, using the mode would be very helpful (if you can find that number, I couldn't). I suspect the typical/mode income for a working 62 year old is closer to $30K/yr plus some modest benefits from their employer.
Thank you for your video's! I'm 58 yrs young but everyone of your videos help me prepare and are super educational!!
And then there is folks like my mom that lost my dad 4 years ago(just retired at 62) he was the high earner and was a month away from drawing at 63. He didn’t do any insurance much to our shock and mom ran through her savings trying to stay in her house and desperately wants to retire but can’t afford too. She will be lucky if she can at 70.
Would like a video if it's better to wait after full retirement + 1year and continue working full time until 70 instead of waiting until 70 (1955) to claim even if I have a long longivity I know every case is different thanks for your opinion.
Another advantage to delaying retirement; you're "Nest Egg" won't have to sustain you for as many years.
My Discover card was charged about $2,000 to Upwork unauthorized. Was it Upwork or someone else using my card for Upwork, I don't know. But it sure seems fishy to me. Maybe Upwork is using other peoples credit cards to pay for your work? I would not use their site.
If you have no savings at 62 you did not plan very well. Lack of work ethic & not having a marketable skill is a problem.
Wait until age 70, and die 6 years later and your life only sucks for 6 more years. Our incompetent government has already stated that “If something doesn’t change social security fund will not be able to pay benefits by 2030.” This is all good advice but the truth is you screwed off your entire life and now you’re old and fukd!
More money equals more happy to me. Feel free to prove me wrong by giving me millions.
WoW.Real good advice. Especially about lifestyle
Let’s not forget that salary is taxed, SS is not(in reality), so the difference is actually much much less.
Too late for me… So I recommend to everyone young to start saving as much or little for when they get there, they will be prepared. I never saved and now I have to rent and I never have enough money to buy enough food after paying electric, gas, water, truck ins and $25 phone plan a month. It's a hard life for me now and I don't want anyone else to live like I have too.
Stay on your feet. Greeter at Walmart is an option.
I hate this fancy words gig work, it is nothing but temp job.
The current job shortage won’t last, whatever the non hands on jobs can export to India , they will send it and leave us out to dry. That’s the reality sadly. Such a cruel system.
Informative but you advisors never seem to mention that after certain age, it is next to impossible to get a decent high paying job. Corporations start to fire us after even 50 due to age discrimination and expensiveness. Yes, it is illegal, but it happens everyday. They are reducing us to only low paying clerk type service jobs if we are lucky or have the health to do any type of service labor type job. It’s such a cruel system.
I am 65 and still working. I have been working towards my retirement since I was 21 years old. I don't understand people who have nothing as they approach retirement. I never bought fancy cars or took fancy vacations. I live in the same house I bought in 1977. I enjoy life but I want to retire and enjoy my golden years. I have saved up for it. I guess I find it hard to feel sorry for people who spend everything and end up with nothing.
Just to clarify – my son has been a working musician in a heavy metal band for the past 16 years. Yes, some fame and lots fun but no jet. But, I understand what you mean – most rock stars aren't that wealthy
When I finished grad school in 1982, there were almost no jobs offering pensions. My first couple of jobs did not have a 401K plans. My last job did. It seems like this transition from pensions to 401K plans was handled horribly. It is no wonder than so many retirees have little or no savings. All the information I got was a 10 minute lunch talk from Fidelity. They did provide free COSTCO pizza. From that talk, I was supposed to figure out how to save for the next 30 years. I figured things out on my own but it was clear, that few of my coworkers got the message. No savings, paycheck to paycheck, lots of credit card debt, car payments, ect.
You talk about the S curve then draw an exponential curve. A more common visualization is to show retirement income on x axis and happiness on y axis, which is usually estimated by a logarithmic curve. i.e. 10 times as much money gives you twice the happiness, 100 times gives you 3 times etc. Pretty basic info but entertaining.
It's sad
This video showed up exactly when I needed it to. Thank you. And it does help to know I'm not the only one!
America is doomed you fool.
I love your videos! You are so helpful and not judgmental!
I've listened to your videos. I did 2022 tax return for age 72, using the programs the IRS offers. The tax program taxed $1800 of my social security, because I made just 25,200. You state that after 70 no Social Security gets taxed. !?! I had income from renting part of my house, but had some major expenses for repairs, so the profit was only 2,000 for the year. Why was my Social Security payment docked by taxing $1,800? Seems so unfair for seniors that can not keep up with inflation.
Geoff I see a lot of people around here renting storage units, and storing relatives stuff. I think a good money discussion topic would be measuring the value of items stored vs. the storage container month or annual rent.
I understand waiting on SS increases. But, SS is still a -4% Even if I am wrong? Would it not be wiser to take SS at 62, and invest the money? I think the rate of return would be greater, investing the SS at 62 v. the interest waiting until full retirement. If you can? Any thoughts and comments? Or make a video on this topic alone? I think many subscribers would benefit from this thought? What do you think? I really like your channel…Thank you!! Holy Schmidt!!!!!
Am 54. Started in my employer's 401(k) 5 months ago with 10%. They do a 50% match up to employees putting in 6%. So I'm actually getting 13%. Literally started with zero. Have had T1 diabetes since childhood so I know my retirement will not be as long as most people. Because of this, I'm expecting I will be fine. Plan on increasing the % contribution with each raise. My main goal now is to be absolutely debt free by retirement. My job is a spreadsheet analyst, so I can work well beyond normal retirement years.
Or Change your name to BIDEN and call China
My retirement plan is a cardboard sign.
Very informative.
I love your videos they are very educational, and I love your humble demeanor. The fact that you offered options for the folks to find side hustles, made this one all the better!
Thank you for putting yourself back in the thumbnails for your videos – helps me recognize at a glance they're yours and not YT's algorithm shoving other stuff at me. Appreciate what you share on here!
Always the voice of reason. Thank you, Geoff, for your much needed perspective. We appreciate you!
Or buy one way ticket to the Philippines with credit card lol