Some people try their hardest to save well for retirement and ultimately fall short. You might land in that boat if you struggle with medical bills or end up with more expensive homeownership costs than expected.
But no matter why you're approaching retirement without enough savings, the reality is that your situation isn't ideal. Not only might it put a dark cloud over your retirement, but it could also result in some serious financial struggles down the line.
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That's why it's important to do what you can to salvage the situation. Here's how.
1. Figure out how to keep working
If you know that you don't have enough money saved to cover your senior living costs, your best bet may be to continue to work. You don't necessarily need to stay at your current job, though.
If your present role is stressful, try to find a job that's a better fit. Even if you end up taking a pay cut, you're better off earning 75% of the paycheck you're used to getting than no money at all when you're trying to boost your cash reserves ahead of retirement.
In fact, you don't have to resign yourself to a full-time job if that's not doable because you're older or don't have the energy anymore. But try to continue to work in some capacity if you're physically able to.
2. Delay your Social Security claim
You're entitled to your full monthly Social Security benefit, based on your personal wage history, once you reach full retirement age. That age is 67 for anyone born in 1960 or later.
If you delay your filing beyond that point, you'll score a higher monthly benefit for life. So if you're able to delay your claim for even a few months, it could make a significant difference. Working longer could make it possible to delay Social Security, so that's another reason to push yourself to stay in the labor force in some capacity.
3. Think about how to monetize your most valuable assets
You may not have a lot of money socked away in an IRA or 401(k) plan. But if you own assets like a home and a car, you have options.
For one thing, you can rent out a portion of your home, like a finished garage or basement, for cash. And if you can't or really don't want to do that, look into renting out your driveway, closets, or pool.
Meanwhile, you can use your car to transport passengers around for money. This is something you can do at your own pace on top of a full-time job or as a full- or part-time job -- the choice is yours.
You deserve to go into retirement feeling positive about that stage of life. But if you know you're short on savings, it may be hard to feel good about things. Rather than resign yourself to years of financial upheaval, do what you can to continue to work in some shape or form, delay Social Security for a larger monthly benefit, and use your home and car to your advantage.
