The 3 Top Reasons Why Retirees Run Out of Money (and How to Protect Yourself)
Running out of money in the middle of retirement is a nightmare scenario. While Social Security benefits and Medicaid can help, they won't provide enough income for a comfortable living situation. That's why it's important to protect yourself from the three most likely reasons for running out of retirement savings.
Americans tend to be terrible at saving money. In fact, we're more likely to spend more money than we have. If you want to enjoy your golden years instead of spending them as a Walmart greeter, you'll need to buck this trend and make room in your budget for ample retirement contributions.
When you're trying to free up some money in your budget for retirement savings, you have two primary options: increase your income or reduce your expenses. Options for increasing your income include getting a raise, getting a part-time job on the side, and setting up passive income streams. Options for reducing your expenses include canceling things you're not using (hello gym membership), temporarily getting rid of luxuries (i.e., eating at home every night for a month), switching your subscriptions to a less costly plan (maybe changing to a simpler and cheaper cellphone plan), etc.
Source: Fool.com
