One of the biggest fears today’s pre-retirees and retirees face is running out of money in retirement – but what happens when that once-distant fear becomes your reality?

Today’s question addresses the steps you can take if you’re facing a retirement savings shortfall. Join Nicholas J. Colantuono, CFP® as he shares key retirement income planning insights in this week’s Money Wisdom Question Series.

Assess Your Retirement Savings Situation

Frankly, no one wants to be in this situation. Without assets or personal savings to fall back on, you’ll likely have to rely on a fixed monthly income – whether it’s from a pension or Social Security. The good news is, even in a tough spot like this, there are ways to bridge the gap.

The first step is to assess and adjust your financial and lifestyle habits. Ask yourself, are you living beyond your means? Can you minimize expenditures? Are there ways to earn extra income?

Find Practical Ways to Reduce Expenses

A dependable income stream ensures that what’s coming through the door is enough to cover what’s going out. Achieving that may mean reducing your expenses wherever you can. Even small cutbacks can make a significant difference, such as lowering your energy usage, traveling during off-peak seasons, or limiting unnecessary purchases. With more money going into your pocket, you’ll be better equipped to maintain the lifestyle you’ve been accustomed to.

Explore Part-Time Work Options

Going back to work may be the last thing you want to do, or it could be the perfect opportunity to pursue a passion or stay active during your retirement years – either way, if your retirement savings fall short, it may be a necessary step to take. A part-time job can help you find your financial footing, providing extra income to cover monthly expenses and helping you rebuild your retirement nest egg.

Seek Professional Guidance

While this situation may not be the comfortable, secure retirement you envisioned, a financial advisor can guide you in navigating the best way forward. At Johnson Brunetti, we can help you determine what changes to make to get back on track to meet your retirement savings goals.