How To Retire With No Savings

Do you have savings for retirement? If you’re like most people the answer is either No or you have very little saved and could be counted as nothing. So it’s a valid question for many people when they ask “Is it possible to retire without any savings?”.

Unfortunately, everyone believes that retirement is a long way off, but the reality is that it comes very fast and most people are unprepared for when that time comes. We know it’s something you’ve heard and likely been told many times either directly or indirectly, but you really should be saving to ensure you can obtain a comfortable retirement.

So the answer to the question is yes you can retire without having any savings today, but you need to start saving now so that you can retire, because without savings at the time of retirement it will not be possible.

An average retirement period can last 20+ years which is an important reason why saving needs to be at the top of your list today.

What to expect when you don’t save for retirement

Here we’re sharing the most common outcomes for a person who doesn’t save for retirement or has very little saved when the time comes to retire.

Living Off of Social Security

In 2021 the average Social Security check was $1,509 per month. For the majority of Americans this number is not even close to enough to sustain a comfortable living situation. Typically Social Security ends up at around 40% of what you made pre-retirement. It’s unlikely that  you plan on living on 40% of what you used to make and as you age the costs of healthcare goes up and becomes more frequent.

Downsizing Living Expenses

As mentioned in the previous scenario you may be living on only 40% of what you made pre-retirement and if your expenses haven’t dropped by 60% post retirement then it will be nearly impossible to maintain living in the same way you did before.

This could mean moving into a smaller home or apartment, or even more extreme is having to move in with a family member, getting rid of gym or club memberships, selling your car, or selling off other possessions to generate cash. This is not fun and a situation no one likes to think about.

Finding a Roommate

In the previous scenario, we mentioned potentially having to move in with a family member if you are forced to downsize, but most retirees aren’t willing and don’t want to move in with their children or a sibling so the only alternative is to find someone else who can split the cost of housing with you.

In this scenario, you’re either literally having a roommate who is sharing the same space as you or if your home is large enough you may have a livable level that can be separate from you which at that point you become a landlord. Both of these options have their own pros and cons, but if you can’t afford to live in your home any longer due to the cost of the mortgage then you’ll be forced to make a decision like this.

Part-Time Work

What many retirees find they have to do in order to pay the bills is find part time work.

This can be difficult because many jobs require physical demands that you may not be able to manage any longer, or the skills gap has increased too much to get back into what you used to do. Luckily many retailers will hire retirees to do some of the easier jobs that don’t require a lot of physical labor or technical knowledge.

But the point of retirement was to retire right?

You didn’t want to have to keep working.

All of the scenarios we listed here are very real and experienced by many U.S. retirees. Saving for retirement will allow you to avoid them and live comfortably.

How to build your savings quickly

The best way to build your savings is to start now! If and when you have access to some savings, even if it isn’t that much, you’ll be able to maximize and grow that through financial investments that are built specifically for growing cash for retirement. Private equity investments are one of those financial tools that will help grow your retirement savings quickly to ensure that you can sustain your current lifestyle and living expenses.

Most people ask, “Isn’t investing risky?”, and while all investments have some level of risk you’ll find that private equity investments are much more stable or less volatile than what you find in the public investment space. 

Other than the more stable and higher return characteristic of private equity investments, another difference between private equity and the stock market investing is that private equity is mostly illiquid. Meaning the cash isn’t sitting somewhere available for you to withdraw whenever you want. This requires you as an investor to have discipline and the ability to wait for the payout at the end of your holding period. But the results are well worth the wait!

These private equity investments are what we here at GenX Capital offer, like our Velocity3X fund that will triple your cash investment in just 4 years.

So if you’re looking to build your retirement savings then contact us today to learn more.