No retirement savings and running out of time? Here’s what to do

In your 60s and concerned about low pension savings? Here’s what to do.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Happy retired couple on a yacht

Image source: Getty Images.

Are you getting closer to retirement and concerned about the size of your pension pot? You’re not the only one.

According to research from Aegon, those aged 55-65 in the UK have pension savings of just £106,000, on average. This amount of retirement savings would provide an income stream of a little over £5,000 per year in retirement, which is not going to go very far, unfortunately. The average UK household spends around £26,000 per year in retirement.

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We’re always told to prioritise retirement savings throughout our careers, but the reality is that many people don’t. So what can you do if you are in your early 60s and haven’t got much saved? Here are a few ideas.

Work longer

OK, this probably wasn’t what you wanted to hear. I get it. But the reality of the situation is that many of us will have no choice but to work a few extra years to continue saving for retirement. However, if the thought of working 40-hour weeks in your late 60s gives you nightmares, don’t despair, there are plenty of other options.

Work part-time

One option is to consider working part-time. This is becoming an increasingly popular option in society today and can help make the transition to retirement more seamless. And the good news is that when it comes to working part-time, you have a lot of flexibility. Don’t think you that you have to remain in your old job. Instead, apply your skills to other areas.

For example, a friend of mine who spent 30 years working for HSBC Bank, now spends a couple of days a week delivering post for Royal Mail. Someone else I know who worked as a nurse now babysits for extra cash.

Check out freelance sites such as Upwork and Fiverr. Small startup companies may be in need of your services. If you have handyman skills or enjoy gardening, take a look at TaskRabbit. There are many ways to earn a part-time wage if you’re willing to think outside the box.

Embrace technology

Another idea is to embrace technology and put some of your assets to use. In recent years, technology has made it easier than ever to generate extra income.

If you’re a homeowner and you have a spare room you could rent it out on Airbnb to pocket a few hundred pounds per month. This could be particularly effective if you live near a popular tourist attraction such as a football stadium. Live near a train station and have an unused garage? Someone might be interested in parking in your garage for a fee.

What about renting out your car? If it is gathering dust in your garage, consider putting it to work and picking up a regular pay cheque through car rental site Drivy. This could potentially net you hundreds of pounds per month.

Another rental site to check out is Fat Lama. Through this site, you can rent out almost anything including bikes, cameras, watches and sporting equipment. This could help bring in a few extra pounds here and there.

Approaching retirement without savings is a scary prospect and a situation that you should try to avoid. However, if this is your current predicament, don’t panic. You do have options. Think imaginatively and you might just salvage your retirement after all.

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