What’s on your bucket list? Is it world travel, picking up a new hobby, or mastering a second language?
It’s not uncommon to save some of these dreams for retirement. But these activities will require money — something many Americans are concerned about not having enough of when the time comes.
Only 26 percent of U.S. adults are extremely, or very, confident that they’ll have enough income and assets to last them through retirement, according to a 2024 Pew Research Center survey.
As Americans struggle to save for retirement, experts say there are still ways to make the most of those years without breaking the bank.
Here are some tips for retirees who want to feel fulfilled while still protecting their nest egg – even if it’s a modest one.
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Your most important assets in retirement are your ‘health and human relationships,’ one financial expert said (Drazen – stock.adobe.com)
Stay social
Focusing on connecting with friends and family is a great way to boost your satisfaction during retirement, according to Dr. Michael Finke, a professor and the Frank M. Engle Chair of Economic Security at the American College of Financial Services.
These social events don’t need to be expensive, either.
“Research suggests that social interactions are the biggest source of life satisfaction in retirement,” Finke wrote to The Independent.
“The best way to create a more fulfilling retirement without spending money is simply picking up the phone and inviting a friend or acquaintance to lunch, or even a cup of coffee.”
“It doesn’t matter whether you’re laughing and telling stories with a friend at a local diner or on a cruise – the enjoyment is likely going to be the same,” he added.
Boost your income where you can
It’s just as common for seniors to overspend during retirement as it is for them to underspend, according to Finke. This can limit what you’re able to do.
One way to increase what you can spend is to “delay claiming Social Security if you’re in good health,” Finke said.
Some retirees do this because their monthly benefit goes up the longer they wait to claim it, according to AARP, a nonprofit organization focused on Americans 50 and older.
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Paying off high-interest debt, like credit card balances, is a sensible step in retirement, according to AARP (Getty Images)
Retirees may also want to consider using a “portion of savings to buy a lifetime income that won’t run out through the use of an annuity,” Finke wrote.
There are many kinds of annuities, but the most basic type is an income annuity, according to AARP.
For an income annuity, you send an insurance company a lump sum of cash. In exchange, the company will give you regular payments (typically monthly) for the rest of your life.
Identify areas where you can save
AARP suggests identifying areas to cut back on spending so you can feel confident that your savings will last through retirement.
One way to do this is by paying off high-interest debt, like credit card balances, according to a 2024 AARP article. You can also take smaller steps, like canceling some streaming services you don’t often use.
This frees up some cash for spending in other areas.
Recognize that your relationships and health matter most
Finke wants retirees to remember that the “most important assets are health and human relationships.”
“Remember that money is just a tool that can make it easier to enjoy life,” he said. “There are plenty of retirees with lots of money that aren’t very happy, and other retirees who don’t have a lot of money but still live a rich life.”