Worried You Haven't Saved Enough for Retirement? Here's What to Do

A lot of people pledge to save well for retirement only to have life get in the way. Stagnant wages, surprise expenses, and the ever-growing cost of raising children could all lead to a situation where retirement is near and you're unhappy with the amount you have saved.

But a lower IRA or 401(k) balance than you initially aimed for doesn't have to mean your retirement will be awful. It just means you may need to make some adjustments. Here's how to compensate if you're convinced you haven't saved enough for retirement.

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1. Delay your Social Security claim

The more money you get from Social Security, the easier it might be to make up for a smaller retirement plan balance. While you're eligible for your monthly benefits without a reduction once you reach full retirement age, which is 67 for anyone born in 1960 or later, delaying your claim beyond that point boosts your benefits by 8% per year you wait.

Now, once you turn 70, you can no longer accrue delayed retirement credits from Social Security. That means that if your full retirement age is 67, the maximum you can snag is a 24% increase. But that's still significant, and it's a great way to make up for a smaller IRA or 401(k).

2. Plan to work in some capacity

If you're convinced your savings won't provide enough retirement income, planning to work is a good fallback option. And you don't have to commit to a steady part-time job to make a difference in your financial situation.

You could choose to take a seasonal job that's lucrative, working two months out of the year and taking the other 10 months off. Or you could dabble in the gig economy and work during times when you're less busy.

3. Turn your home into an income source

You'll often hear that renting out a portion of your home is a great way to generate retirement income. But that also means having to share your home with someone else, which may not be ideal.

The good news? There are ways to monetize your home without taking in a permanent tenant.

If you're in an area that's close to jobs and parking is hard to find, you can rent out the spare spot in your driveway. And if you have a fantastic pool you don't use all that often, look into renting it out by the hour or afternoon.

It's not a good feeling to think that you're short on retirement savings. But you can take steps to boost your income. You may just need to get creative or, in the case of Social Security, exercise patience in taking benefits.

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