Guaranteed Ways to Receive $500 per Month in Retirement

Hay millions of American retirees for whom it is very difficult to make ends meet, because the pension payment is not enough. However, it is possible to guarantee receive $500 per month in your retirement and here at Otium we explain how.

Keep in mind that it is when you are between 20 and 30 years old that you should look for ways to grow your savings and obtain other sources of income during retirement. Otherwise, you may regret it as soon as you apply for benefits.

Of course, you can’t neglect your emergency fund, your 401(k) retirement savings account, or other investments like property. However, not many Americans in their twenties and thirties think about ways to earn a guaranteed income as retirees.

How can I get a guaranteed income of $500 in retirement?

If you have some retirement savings, there are some things you can do. One of the answers to this question is pretty simple: get a high-yield savings account. However, this may only be for those who are high earners and have a lot of money to invest.

Either way, you can make money from the interest it generates. So, if you don’t have $100,000 to put into a high-yield savings account, try putting in $25,000 to get about $100 a month for retirement.

The second possibility is to receive a pension payment. While you work, there may be many employers that offer pensions. It is true that nowadays it is not so common, but check if you have that possibility.

Otherwise, converting a 401(k) savings account into a pension is another way to achieve this. Of course, consult with a financial advisor first, because you may need to have $150,000 to get around $500 per month in retirement.

Annuities are the third possibility. If you have managed to save more than $74,000 and earn an interest rate of around 7%, you can also collect around $500 in your lifetime as a retiree. Others prefer to simply rent out part of their house to get a regular source of income.