Delaying Retirement

With the recent downturn of the economy, many nest eggs have been cracked, even broken.  If you’ve been planning for retirement within the next two or three years, you may find your plans put on hold and your working years extended by a few.  Maybe, though, your situation isn’t as bad as you think.  Here are some things you can do now to prepare for living on a reduced income whether it comes as soon as you had hoped or a bit later.

1. Downsize debt. If you’ll be working anyway, pay off everything as quickly as you can.  Plan to go into retirement with no debt at all, or a mortgage at most.
2. Downsize lifestyle. Cancel the cable TV to save money.  Dust off the Scrabble board and play games instead; it’s good for the brain.   Eat in, not out; it’s better for your health and the money you save might affect not only your bottom line but your waistline as well.
3. Downsize your belongings. With everyone looking for bargains these days, this is a perfect time to get rid of your excess “stuff” and make money in the process.  Liquidate that knick-knack collection on eBay or have a yard sale.
4. Diversify your income by starting a business online, something that can carry over into retirement.  Share a favorite hobby by creating lenses on Squidoo.  Apply the money you earn to the debt we mentioned above.
5. Downsize your expectations, but not to the point of making yourself depressed.  Remember that the stock market will improve; historically it always has.  You may still be able to take that dream trip someday, but for now explore areas closer to home and concentrate on enjoying your travel partner more than the travel itself.  Now, that’s a good investment in the future.

Photo credit: loveforphotography

Susan52 is a baby boomer and a giant squid on Squidoo who enjoys blogging and building a business in her pj’s.

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