When you consider that half of all Americans have no financial plan perhaps it is no surprise that many American feel resigned to a retirement that is out of their control. According to a Northwestern Mutual 2013 study exploring the state of planning in America, 63% of Americans say their financial planning needs improvement and the number one obstacle is not having enough time. 69% say the pace of society makes it harder for them to stick with long-term goals.

Well, perhaps once you realize that it is not an all-or-nothing proposition you will make time and join the 50% who have a plan in place. Just by taking that step puts you in elite company. While there is never a guarantee, having a plan definitely puts the odds in your favor. You may recall from my blog “6 Questions Baby Boomers Need to Answer Before Planning for Retirement” that I mentioned the Red Line Solutions. Those are the ways you can avoid running out of money in retirement.

Before you know which one might make sense for you, or if you even need them at all, you need to put a pencil to paper. This step is a critical part of the planning process – to determine how long your assets will last in retirement. So if it looks like your savings and investments won’t last your lifetime, here are 5 solutions to help fund a successful retirement:

1. Work longer, retire at a later date. Don’t forget, each year that you continue to work increases not only your Social Security benefit, if you have a pension it could increase that benefit as well. It will also allow your retirement investments to continue to grow (401(k), IRA accounts, and taxable investments).
2. Work a second job or part-time after retirement. The first step is to figure out what your income shortfall will be and then you can start considering the type of part-time work you will need to supplement your other sources of income in retirement.
3. Reduce monthly expenses. Yes, this can be a painful process but in many cases it will be necessary. This is why the budgeting step is so crucial. You don’t know what needs to be reduced if you don’t know what you are spending. Check out my Budget Tracker tool to get started. Most retirees don’t need to live on their pre-retirement standard of living. It will probably be somewhere between 70-80% of what you are spending now. Once you have your budget you can figure out what can be reduced or eliminated.
4. Increase the contributions to retirement accounts. Use the power of compounding and time to work in you favor. Even a small increase of $50 to $100 a month can have a dramatic effect on your retirement savings depending on how long you have until retirement.
5. Sell an asset. Again, probably a tough decision. Maybe not, if that vacation home is going unused now that the kids have grown and are not as interested in using it as they were once upon a time. Or maybe you want to downsize and get a smaller, less expensive home or move to a part of the country that is less expensive than where you live now.

Perhaps none of these solutions appeal to you. I understand. I find that once people realize that it doesn’t have to be such a daunting task to cut expenses or increase their 401(k) contribution they are willing to make the sacrifice. Many retirees look forward to working longer at their current job or taking on a part-time job. Whatever your situation is you need to start with a plan. Then you can determine if any of these Red Line Solutions make sense.

Time Out!
What will you do if you need additional income in retirement? You can leave a comment here.