4 Smart Retirement Income Strategies

How to Generate Income in Retirement (Without Going Back to Work!) 

When it comes to retirement, there's something to be said for saving money over time. But it's not enough to save money. You also need to think about how you're going to generate income in retirement.

The Two Biggest Retirement Struggles
Retirement is supposed to be the time in your life where you're free. Free of stress. Free to go where you want. Free to do whatever you want.

Unfortunately, it doesn't always work out this way. For millions of Americans, retirement doesn't feel all that free. Most often, this can be tied back to one of two issues:

• Having to scale back your lifestyle. Ideally, you want to be in a position where you're able to scale up your lifestyle in retirement. In other words, you can take more vacations, buy nicer cars, eat out more often, and enjoy your sunset years. But if you don't have enough income in retirement, you could actually be forced to scale back your lifestyle. This ends up being a huge source of frustration.

• Running out of money. The biggest issue retirees face is the idea of outliving their money. In other words, they live so long that they don't actually have any money left during their final years. This is obviously a huge concern (and must be avoided at all costs).

The good news is that you don't have to deal with these issues. As long as you're willing to put in the work and choose the right strategies, there are plenty of unique and creative ways to generate income in retirement.

4 Retirement Income Tips
The good news is that there are plenty of different ways to create income in retirement. The key is to figure out which one – or rather which "blend" – is right for you. Here are some suggestions:

     1. Delay Social Security Benefits
Social Security is one of the primary sources of income for millions of retired Americans. And while it hopefully isn't your only stream, it's important that you manage it wisely. If possible, plan on delaying your benefits as long as you can.

While nearly half of people take their Social Security benefits at the minimum distribution age of 62, you can earn a lot more by patiently waiting. If you claim your benefit at age 62, your benefit could be reduced by as much as 30 percent (compared to waiting until age 70).

If you're healthy, patient, and able to wait until 65 or 70, you'll enjoy a much greater monthly benefit. Keep this in mind and look for other sources of income to bridge the gap from 62 to 70.

        2. Invest in Annuities
Annuities are one of the most misunderstood investment options on the financial block. While they do come with high fees, penalties, and lower than average yield rates, they're highly secure and flexible investments. You won't get rich off an annuity, but you can guarantee a steady stream of income (which is nice if all of your other investments are tied up in a volatile market). For example, the Due Annuity Plan offers a three percent guaranteed interest rate on your money. Learn more by clicking here.

        3. Invest in Real Estate
Real estate is always a good option for generating income. And as with most options on this list, there are a couple of different ways you can go about it:

• Rental properties. If you have a healthy amount of cash available, you can always invest in your own rental properties. This allows you to enjoy tax benefits, long-term appreciation, and steady monthly cash flow.

• REITs. If you're short on cash, or don't want the risk of pouring tens of thousands of dollars into real estate, you may opt to go a more conservative route. This is where real estate investment trusts, or REITs, come into play. These are basically like mutual funds, except they consist of managed income producing properties. They pay out regular "dividends" that can either be cashed out or reinvested.
  
  4. Pick Up a Side Hustle

You obviously don't want to go back to working for "the man," but there's something to be said for starting up a side hustle to make some extra cash on the side. It should be something you enjoy doing, like woodworking, teaching golf lessons, selling crocheted scarves, etc.

Adding it All Up
Retirement should be a time of great freedom. By planning ahead and looking for ways to generate diversified streams of income, you can set yourself apart and avoid having to scale back your lifestyle and/or outlive your savings.