For retirees who may be looking for additional sources of cash beyond social security payments, it might be a good idea to try exploring unconventional sources of cash flow instead of just relying on one source. One such source that can help an older person become more resilient to retirement is reverse mortgages, according to Dina Richie, financial editor of the online financial platform Due’s guide blog.
“However, this is not all darkness and doom. An astonishing 72% of respondents to one survey say the pandemic has not changed their retirement plans, ”she writes. “Whether the pandemic has affected your retirement or not, the fact is, you never know when you’re going to have a financial setback. Good news? If you prepare now, you can bounce back without any problems. “
Richie offers several financial tips to help those struggling with the stress of not saving enough, including rethinking pension contributions and allocating investments; focusing on activities that can help build up savings; a proper definition of what constitutes a “financial emergency”; and postponing retirement by choosing to work longer.
One piece of advice is based on the idea of being “flexible and resourceful,” and this is where non-traditional sources of cash flows come into play. One of the often overlooked potential opportunities is reverse mortgages, she said.
“You may not be able to catch up if you are far behind in terms of retirement benefits,” she says. “Therefore, you should be prepared to explore other means of securing your pension. To begin with, consider looking for additional sources of income other than social security and your savings. For example, if you’re a homeowner, you can take out a reverse mortgage or rent a spare room on Airbnb. Or you can sell your home and move into something smaller and less expensive. “
That resilience could also mean finding a part-time job in addition to fixed income, she said, with websites including RetiredBrains and RetirementJobs.com serving as potential sources specifically targeted to find work for older workers.
Resilience can also mean determining that your current life situation may be volatile and may be better suited for a location where the cost of real estate and living in general is lower. This is not a viable option for many older people tied to their homes, but it can fall under the broad category of “resilience” sufficient for major change.
Read column at Due.com.