3 Things to Do if You're Worried About Running Out of Money in Retirement

The idea of retirement can be very exciting -- until you realize you'll be giving up the paycheck you relied on for many years. Suddenly, the idea of ending your career can go from thrilling to downright scary.

When you're working, there's generally the promise of an upcoming paycheck. When you retire and begin withdrawing from your savings, there's a finite pool of money you're tapping into. That's a very different situation and mindset.

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If you're worried about running out of money in retirement, you're no doubt in good company. But you should know that there are steps you can take to seriously mitigate that risk. Here are three worth considering for better peace of mind.

1. Delay Social Security

There's unfortunately no guarantee that your IRA or 401(k) won't get depleted in your lifetime. But one income source that can't run out on you is Social Security.

Those monthly benefits are yours to keep collecting for the rest of your life. So the more money Social Security pays you each month, the less you should have to withdraw from your IRA or 401(k) plan.

If you were initially thinking of claiming Social Security at full retirement age but are concerned with running out of money, don't stick to that plan. Instead, delay your claim until age 70. For each year you hold off on filing, your benefits are eligible for an 8% boost.

2. Make sure your portfolio is producing income

If you're going to be taking regular withdrawals from your nest egg in retirement, you need to make sure that account is continuing to generate income for you. That means you shouldn't dump all of your stocks in retirement, since they could drive a lot of growth in your portfolio.

Dividend stocks are an especially strong asset to consider for retirement. Many dividend-paying companies are established businesses with a long history of sustaining and increasing those shareholder payments. This means they may be less likely to lose a lot of value in a market downturn than a company that's focused primarily on rapid growth.

Also, dividend income can serve as a hedge against market turbulence. And if you're collecting dividends in your portfolio, you can cash them out when you need income and potentially avoid having to tap your principal, thereby preserving and stretching that money.

If the idea of choosing individual dividend stocks for your portfolio seems daunting, another option is to load up on dividend ETFs, or exchange-traded funds. Dividend ETFs allow you to own a collection of dividend-paying companies without having to choose them one by one.

3. Continue to work

There's no rule stating you can't continue to work in some shape or form once your career comes to an end. The more you're able to earn from a job in retirement, the less you'll have to tap your IRA or 401(k) plan each month.

Plus, working could help preserve your savings by giving you an inexpensive activity to do with your time. If you're occupied two days a week by a retail shift or gig role, you won't have to spend money staying busy during those hours.

Working could also help you meet more people and expand your social circle. That could lead to more low-cost entertainment that helps your savings last -- think book clubs, potluck dinners, and other social activities that shouldn't break the bank.

If you're worried about running out of money in retirement, being strategic with Social Security and choosing the right portfolio investments can help. Also consider working in some capacity, because even a small paycheck could go a long way for you.

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