Many people entering into retirement have a fixed income, which can leave little room to breathe from a financial perspective. Approaching retirement with a financial cushion can provide some much-needed reassurance, even if your essential expenses are already covered. To learn how life insurance policies and investments can increase your retirement income and provide peace of mind, consider these three tips. 

How to Expand Your Retirement Income

1. Consider Working During Your Retirement

While some people look forward to a life of leisure during retirement, others can’t imagine not having an occupation of some kind. A part-time job is ideal in this case, and it offers more benefits than just providing a financial cushion. Working allows you to socialize with others, and because you’ll have the freedom to pick a part-time profession that appeals to you, you’ll also experience greater job satisfaction. You could even take this opportunity to learn and practice skills you may not have considered before retirement. 

2. Purchase a Life Insurance Policy

Certain types of life insurance policies have an investment component. For instance, whole and universal life insurance accumulate a cash value that can be borrowed against or even withdrawn if you need financial assistance during retirement. Keep in mind that the more money you use, the less the death benefit will be, so it’s best to use a combination of methods when creating a financial safety net for retirement. 

3. Implement an Immediate Fixed Annuity

Not everyone has a pension when they leave a job. However, annuities function similar to pensions, which provide a bit of financial stability to retirees. Annuities are provided by insurance companies and work by providing a guaranteed income, either for a period of time or for life, depending on which option you choose. Additionally, funds are usually available within a month after purchase.

Whether your retirement is a few years off or right around the corner, it’s best to start planning now. If you’re looking for life insurance in Clifton Forge, VA and the surrounding area, Nicole Gumm Groseclose Insurance Solutions can help you find a suitable option. Along with life insurance policies, Nicole can also help you secure the right annuity by explaining your options in a clear and concise manner. See the difference more than 16 years of experience makes by calling (540) 968-1569. Read more helpful tips online.