10 Surprising Reasons You Won’t Run Out of Money in Retirement

MANAGE MONEY - BUDGETING
The scariest part of retiring from work is the end of a regular paycheck. These tips may ease your mind about running out of money.
Updated Feb. 21, 2024
Fact checked
worried senior couple

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

It could be daunting trying to save money to retire comfortably. Perhaps you’ve sat down to calculate how much you'll need and got overwhelmed by all the things you have to consider.

Will you pay off your house or still have a mortgage? What about everyday expenses like groceries or utilities? Have you taken into account one-time purchases like a vacation or something for a hobby? And most importantly, have you saved enough, or are you going to run out of money?

Before you start to panic with your estimated retirement budget in front of you, here are a few things to consider that can set your mind at ease.

Eliminate your late tax debt

Each year, the IRS forgives millions in unpaid taxes. If you have more than $10,000 in tax debt, or have 3+ years of unfiled taxes, you could get forgiveness too. You might be eligible to lower the amount you owe, or eliminate your tax debt completely.

Easy Tax Relief could help you lower or get out of your tax debt for good. They’re well respected in the industry and have been recognized for their ethical standards when dealing with tax debt. While most tax companies just put you on a payment plan and file your taxes for you, Easy Tax Relief talks to the IRS directly. They can help you pay off your tax debt faster while potentially reducing what you owe.

Important: Not everyone will qualify. To take advantage of this special program you must owe more than $10,000 in past-due taxes.

Fill out this form to get started

Expenses are lower

tomertu/Adobe man hand holding card with the word expenses

One of the great things about retiring is you don’t have to work anymore, which could reduce your daily expenses.

You might save money because you don’t have to pay for gas, coffee, or lunch at your office. You also may save cash by ditching the professional wardrobe you spent money on each year.

Driving less might also help you save money on car insurance, so check with your insurance provider about a potential reduction in your insurance bill.

Social Security is there for you

Jon Anders Wiken/Adobe US social security cards and dollar bills

There might be doomsday news out there about whether Social Security will exist when you retire or if you’ll be able to collect it. But for now, Social Security isn’t going anywhere, so remember to factor that into your budget.

While Social Security alone likely won't be enough, it will provide a nice pad. Use the calculator on the Social Security Administration’s website to estimate your monthly payments.

Downsizing may lower your cost of living

Iriana Shiyan/Adobe small craftsman one-story exterior with wood siding

Most likely when you retire, you'll also be an empty-nester, with your children leaving home to start their own lives. Perhaps you want to get a smaller house with less upkeep as you get older.

Downsizing your home could give you a windfall from the sale of your house, lower your monthly utility bills, and reduce your property taxes.

Pro tip: Paying your mortgage may have increased your equity in your home. Check with a financial professional to see if there’s a way to unlock some of that equity when you need it.

Earn $200 cash rewards bonus with this incredible card

There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.

The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.

This card also offers an intro APR of 0% for 15 months from account opening on purchases and qualifying balance transfers (then 20.24%, 25.24%, or 29.99% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.

The best part? There's no annual fee.

Click here to apply now.

More time for DIY projects

panyajampatong/Adobe carpenter working on woodcraft using a hand saw

Your budget may have an extra line for dining out or home repairs. But with more time at home, consider taking on tasks you may have paid others to do when you were still working.

Think about cooking more meals in your kitchen or trying to repair things yourself now that you have extra time in retirement to devote to home projects.

You’ve invested enough for retirement

Jerry Sliwowski/Adobe Retirement Planning

You may be surprised to find that you have invested enough money for retirement already.

As you approach retirement, sit down with your current budget as well as your estimated retirement budget to adjust your plans for saving now as well as spending later.

Adjusting your savings now after a new job or promotion could change your investment plans for the better.

Your kids are older

highwaystarz/Adobe adult son moving out of parent's home

As you get older, so do your kids. They may live with you after college or be out on their own, but they most likely will have a job, which could cover some expenses you would’ve handled when they were younger.

But keep in mind that helping them is not the same as paying for high-ticket items like a car or covering their student loans.

Remember to pay yourself and start investing in your retirement and savings before you pay expenses for your adult children.

More time to optimize your investments

William W. Potter/Adobe boxes of financial products on a laptop

Being retired means you may have more time to devote to your investment portfolio.

Perhaps you could learn how to rebalance your assets on a regular basis, or you could find a financial planner to help you (if you haven’t already).

You may find it's best to put money from your portfolio into more diverse investments. And you can watch your portfolio more often to see what works and what doesn’t work to make your investments work for you.

Long-term care insurance

wladimir1804/Adobe medical concept of long term care insurance

One of the most expensive things you may have to pay for when you’re retired is long-term care, and it could drain your savings. It might be a good idea to start looking into plans now if you haven’t already.

The earlier you take out a policy, the lower your premium. Long-term care insurance may cover any expenses for nursing or medical care as you get older.

Adding to your portfolio

Maksym Yemelyanov/Adobe newspaper and direction sign with investment options

There’s no age to stop investing. Even if you’re not earning a regular paycheck, you should continue to invest.

Consider reinvesting any earnings you have as you get older so you can delay touching your principal.

Stocks, bonds, or mutual funds may generate enough income each year to pay your daily expenses.

Take advantage of historically high rates to grow your wealth

Are your savings just sitting around, not earning much interest? It's time to make a change and put your money to work for you! With CloudBank 24/7, you can earn more interest on your money today ... while keeping your cash OUT of the stock market.

Here’s their secret: CloudBank 24/7 amplifies your money by doing what many banks refuse to do … paying you a rare 5.26% APY (annual percentage yield)12 on your cash.

When you deposit your money into this high-yield savings account, you can supercharge your emergency fund, short-term savings, return on cash, and more with interest income generated from their high 5.26% APY payout.

The best part? There are no fees, you can withdraw your money at any time, and opening an account takes as little as 3 minutes. CloudBank 24/7 is FDIC-insured through Third Coast Bank SSB and cybersecurity is a top priority, ensuring your data is kept safe.

Click here to open a CloudBank 24/7 online savings account

More time for a side hustle

Prostock-studio/Adobe taking notes in office

There are plenty of ways to supplement Social Security income with a side hustle, especially if it’s a hobby you enjoy or a new business you’ve always dreamed of starting.

Retiring means you have more free time to finally pursue those other plans and make some money while enjoying your new adventure.

Bottom line

gustavofrazao/Adobe hands of a man showing what's your plan for retirement

If you’re worried about how much money you will have when you retire, analyze your current budget and your projected retirement budget, then figure out how you can save more now to have the amount you need later.

You also might want to revisit your budgets on a regular basis as your job situation or plans for retirement change.

Lucrative, Flat-Rate Cash Rewards

5.0

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn 2% cash rewards on purchases

Benefits and Drawbacks
Card Details

Author Details

Jenny Cohen Jenny Cohen is a freelance writer who has covered a bit of everything, from finance to sports to her favorite TV shows. Her work has been featured in The Wall Street Journal, USA Today, and FoxSports.com.

Want to learn how to make an extra $200?

Get proven ways to earn extra cash from your phone, computer, & more with Extra.

You will receive emails from FinanceBuzz.com. Unsubscribe at any time. Privacy Policy

  • Vetted side hustles
  • Exclusive offers to save money daily
  • Expert tips to help manage and escape debt