If you’ve been saving for your retirement for any amount of time now, you know it can be difficult. And you may have even found yourself discouraged at some point when you realized exactly how much you would need to save in order to live comfortably in your Golden years. If you wish to receive $40,000 of income each year in retirement, then you would have to accumulate $1 million into your retirement account. And that’s assuming you use the 4% safe withdrawal rate through retirement.
For most people, saving $1 million is simply out of their reach. But there are other ways to increase your retirement income.
Increase Your Social Security Benefit
The average Social Security benefit is modest but you can increase your payments simply by working longer and earning more during your working years. You can also delay claiming your SS payments until you’re a bit older, this will increase your monthly payments. For each year you delay, the payment will increase by 8% per year until you reach the age of 70.
Find a Job with a Pension
Although they are getting harder to come by, jobs that offer pensions are a great way to add an additional source of income in retirement. Police officers, firefighters, civil servants, teachers and members of the military have a pension plan and if they work until retirement, they can expect a second stream of guaranteed income.