RETIREMENT INCOME ON THE RETIREMENT
Increasing Your and My Retirement Income
The reality is that currently most American retirees don't have a lot of retirement
income. Their retirement
number was not as high as it should have been according to financial institutions. Ths
same is true for Canadians.
I have now the gloomy prospect of
retiring from office loaded with serious debts, which will materially affect the tranquility of
— Thomas Jefferson
Here, according to the 2007 Census, is the total retirement income for American households age
65 and older:
• Under $5,000 (2.4 percent)
• $5,000 to $9,999 (7.7 percent)
• $10,000 to $14,999 (13.3 percent)
• $15,000 to $19,999 (11.4 percent)
• $20,000 to $24,999 (9.3 percent)
• $25,000 to $34,999 (15 percent)
• $35,000 to $49,999 (13.7 percent)
• $50,000 to $74,999 (11.9 percent)
• $75,000 to $99,999 (6 percent)
• $100,000 and over (9.3 percent)
As you can see, only about 15 percent of Americans have retirement incomes greater than $75,000
and 35 percent have retirement incomes that are less than $20,000.
A question that arises is: "How can I increase my retirement income." The answer should not be
lottery is my retirement plan." One of my favorite gambling quotes is by Richard
Feynman, "The first principle is that you must not fool yourself — and you are the
easiest person to fool."
Recently Gallup identified the top 10 sources of retirement
income available to Americans.
1. Retirement savings accounts
2. Home equity
3. Pension plans
4. Social security
5. Certificates of deposit
6. Stocks and mutual funds
7. Retirement jobs
8. Annuities or
10. Rent and royalties
It follows that the best way to increase your retirement income is to increase the
amount that flows from any one of the above ten sources.
In other words, learn to think of opportunity instead of security.
My retirement income is based primarily on the sales of my
book How to Retire Happy, Wild, and
Free which falls into "Rent and Royalties", the item that provides the
least in retirement income for the vast number of retirees.
See How to Retire Happy,
Wild, and Free on Facebook
Using Home Equity for Retirement
Home equity for retirement income can be used in two ways. The first option is to have the home
sold outright. Retirees can then rent accommodations or downsize to a smaller house, using the extra funds for
living expenses, particularly in old age.
Another option for using home equity for retirement income is getting a reverse
mortgage. You may also look into getting a mortgage loan if you need one.
There are three general ways that retirees can choose to receive the money from a reverse
mortgage. The three options include a lump sum, fixed lifetime monthly payments, or a line of credit. More than
60 percent of American retirees getting a reverse mortgage choose the line of credit, which retirees can draw on
at any time.
The size of the reverse mortgage will depend on the age of the retirees at the time of application, the type of
reverse mortgage, and how much the house is worth. Generally speaking, the older the retiree and the more the house
is worth, the larger the reverse mortgage that the retiree can obtain.
Retirees do not have to repay the loan as long as the home remains the principal residence. Income and credit
rating are not considered when qualifying for a reverse-morgage-based loan. Although there is no requirement that
retirees requalify during the term of the reverse mortgage, but property taxes and home insurance must be paid by
the retirees and kept current.
Where American Seniors Get Their Retirement Income
According to the Center for Retirement Research at Boston College, American retirees 65 and
older rely heavily on Social Security for their retirement income. Surprisingly, this is true even at the
top-third of the income bracket.
Unfortunately, the majority of the retired and soon-to-be retired can't depend exclusively on
pension plans because of the substantial financial losses that their retirement savings accounts sustained
during the Great Recession.
See this image in better resolution on NPR at:
The above graphs shows that the bottom income tier — the third of Americans 65 and over with the lowest level
of retirement income (annual income of $16,758 or less) — receive their retirement income
The middle income tier — the third of Americans 65 and over with the middle level of retirement income (income
between $16,758 and $37,161 per year) — receive their retirement income from:
The top income tier — the third of Americans 65 and over with the highest level of retirement income
(income above $37,161 per year) — receive their retirement income from:
In short, at least one-third of Americans will have to rely on Social Security benefits — not pensions — in
their retirement years.
Source: Calculations by the Center for Retirement Research at Boston College, based on the U.S. Census Bureau
2009 Current Population Survey
Follow The Easy Rule of Life for More
Some Retirement Income Money
Let's spend all our money to buy cool stuff. Later we can sell it
all on eBay to pay for our retirement.
— from Glasbergen cartoon
More money seldom solves someone's money problems. Intelligence
— Robert Kiyosaki, writing in Rich Dad, Poor Dad.
Shun anything — shares, property, or the latest hot trend — with
recent sharp appreciation. Bubbles burst. Wait until prices fall and then stabilize. Never buy in a
market that is rising or falling fast. In the short term, stick to safe investments, even if you can
only get 5 percent.
— Richard Koch, writing in Living
the 80/20 Way.
When it comes to making more money, most people look at the world
and see the same opportunities they’ve seen before: typically, a job. Because they don’t awaken their
mind and expand their vision, they don’t see other opportunities. Yet opportunities do exist. So how do
you change your thinking so you can see them? One way to jolt the brain out of its preconceived
category thinking is to bombard it with new experiences.
— Joe Vitale
Retirement Income Resources to Help Increase Your and My Retirement Savings and
Your and My Retirement Money
1. Retirement Income Calculator: Take
an educated guess at how much money you will have to spend in retirement by estimating your retirement
benefits at this U.S. Government website.
2. Millionaires in the Making: If
you didn't become a millionaire in your regular career you can still become one as a
retiree. Millionaires in the Making are smart about choosing investments
and they get a kick out of socking away money. They don't spend frivolously but know how to enjoy life, they
keep an emergency, and try to keep debt to a minimum.
3. US Government Retirement Website for
Seniors: Official information and services from the U.S. government for the retired
and soon-to-be retired including money and financial issues.
4. US Government Website: Home page of the US Government's
Official Web Portal for all government transactions, services, and information including links to Social
Security and Retiree Benefits.
& Savings Tips For Retirees: Financial advice on the right way to change spending
habits and learn why the wrong ways don't work. Budgeting is an important tool to use at any age, although
to many of us it sounds like a four letter word. Practical ideas for budgeting and saving that make managing
6. Fiscal Fitness for Older
Americans: Stretching Your Savings and Shaping Up Your Financial Strategies. Advice
from The Federal Deposit Insurance Corporation which has been publishing FDIC Consumer News quarterly since
1993 to help people protect and stretch their money.
7. The Money
Café: Features a special webpage on "My Retirement Money." This website gives you
free financial advice on how to make money, how to save money for retirement, and how to spend your
retirement savings wisely. If you follow the advice on this website, you will have a happy retirement — both
financially and psychologically.
8. National Save for Retirement
Week: National Save for Retirement Week is a key event employers use to inspire their employees
to save more for retirement.
9. US Department of Labor: This page
provides a shortcut to the information and services the Department of Labor offers on various labor and
Success Without a Real Job: The ideal career book for retirees who would like to work in retirement to
increase their retirement income but not in a traditional corporate job. In Chapter 6: Prosperity
Comes When You Do the Right Things with Your Life, this book includes topic such as More Money
Won’t Bring You More Happiness — It Works the Other Way Around!; Financial Freedom Does Not Have to Be Just
a Dream; Your Prosperity Will Grow to the Extent That You Do; and Prosperity Spending in Retirement Is Good
for Your Financial Soul.
11. With a focus on the non-financial aspects of retirement, How to
Happy, Wild and Free explores the myriad choices and decisions we are all
confronted with in living out our retirement lives. Easy to read and well laid out, the bestselling
non-financial retirement book on Amazon.com emphasizes preparing for retirement long before you retire.
How to Retire Happy, Wild, and Free is a provocative, entertaining,
down-to-earth, and tremendously inspiring book that will help you get more joy and satisfaction out of all your
Income for Unconventional Retirees: This webpage on The Joy of Being Retired Website
is for retirees who are motivated and creative enough to generate income in unconventional ways such as
to Purchase on Amazon.com
More Retirement Income Money
Paying attention to simple little things that most men neglect makes a few men
— Henry Ford
Money is what you make it. Depending upon
who you are — and your frame of mind
— money can be anything you want it to
be. Money can be: the root of all evil; or
that which answers all things; or something
that burns a hole in your pocket; or a means
to freedom; or an interesting concept; or even
a stupid concept. Whatever value you place
on money, you must take responsibility for it.
If money is evil to you, you created it being
evil. If money is a problem to you, you created
it being a problem. If money is joy to you,
you created this concept. Take responsibility
for your concepts. And be clear that these
are just concepts. Nothing more and nothing less.
— from Career
Success Without a Real Job
We have a balance of $0.32 in the bank … Which made us four-and-a-half trillion dollars
richer than the federal government.
— Jim Borgman
A large income is the best recipe for happiness I ever heard of.
— Jane Austen
WEBSITE COPYRIGHT © 2017 by Ernie J.
of The World's Best Retirement