Finweek English Edition - - IN DEPTH RETIREMENT -

Op­tions for boost­ing in­come upon retirement are lim­ited, but there are a few. 1. Try and make a higher con­tri­bu­tion to­wards your sav­ings: If your dis­pos­able in­come does not al­low for this, relook the bud­get and de­ter­mine where ex­pen­di­ture can be cut. 2. Con­sider work­ing longer to con­tinue earn­ing a salary: Work­ing be­yond retirement of­ten de­pends on com­pany rules and the con­cern around cost to com­pany of keep­ing such an in­di­vid­ual on com­pany ben­e­fits. But some com­pa­nies do al­low those who have reached retirement age to con­tinue work­ing, with the in­di­vid­u­als them­selves rather than the com­pany some­times car­ry­ing the cost of those ben­e­fits. 3. Be­come in­ven­tive about bring­ing in more money: This could mean con­sult­ing or find­ing part­time work. “While you may no longer be em­ploy­able in the for­mal sec­tor due to your age, there is a whole new world open­ing up on­line where you can use your in­tel­lect to pro­vide in­come,” says Anne CabotAl­let­zhauser, head of the Alexan­der Forbes re­search in­sti­tute. “Start tap­ping into th­ese on­line ser­vices that range from dog-walk­ing to edit­ing manuscripts to tutoring to make money. It is low risk, low en­ergy so you can do it at your own pace.” 4. Re­duce friv­o­lous spend­ing and con­sider down­scal­ing your life­style: Cut­ting back on niceto-haves could free up a healthy chunk of cash that could be used to top up the retirement pot. Per­haps this is the per­fect time to down­scale to a smaller, or less ex­pen­sive ve­hi­cle, or a smaller home, al­low­ing you to save on the higher rates and taxes, elec­tric­ity, wa­ter and main­te­nance costs of larger homes. 5. Don’t dis­count higher risk growth as­sets but be wary of get-rich-quick schemes: “There are no short­cuts. It is es­pe­cially at this time and in the sit­u­a­tion of in­suf­fi­cient retirement funds one should be say­ing ‘Thank you, but no thank you,’ to get-richquick schemes,” says Karp. Some­one of­fer­ing such a scheme is not go­ing through your financial plan to iden­tify ex­actly what your needs are or what your risk tol­er­ance is. Financial plan­ning is not a prod­uct that you pick off the shelf at a su­per­mar­ket that might be hav­ing a spe­cial,” says Karp.

But avoid­ing the get-rich-quick trap doesn’t nec­es­sar­ily mean avoid­ing higher-risk growth as­sets. “Even when ap­proach­ing retirement, growth as­sets, which may be more volatile but pro­duce the in­come that is needed, should not nec­es­sar­ily be avoided. “Volatil­ity in cap­i­tal can be bet­ter tol­er­ated than volatil­ity in in­come,” says Wil­liams.

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