Maximizing Your Income in Retirement

Are you feeling behind on your retirement savings? You’re not alone—and the good news is, it’s not too late to take action. Many people are in the same boat, and with the right strategy, you can still create a meaningful impact on your financial future.

One of the most important retirement planning strategies is to maximize your income now. While working with a financial fiduciary is essential, there are proactive steps you can take today to improve your financial outlook.

Here’s how to start maximizing your income—even if retirement is right around the corner:

1. Delay Social Security Benefits (If Possible)

Why it matters: For each year you delay Social Security past your full retirement age (up to age 70), your benefit increases by approximately 8% annually.
Action step: If you have other sources of income or can continue working, postponing your benefits could significantly increase your monthly payments.

2. Boost Your Current Income

Options to consider:

• Start a side hustle: Leverage your skills through freelancing, consulting, ridesharing, tutoring, or pet sitting.
• Ask for a raise: If your job responsibilities or market value have grown, it may be time to renegotiate your salary.
• Tap into the gig economy: Platforms like Upwork, Fiverr, TaskRabbit, and Etsy offer flexible ways to earn more.
• Explore remote work: Look for work-from-home opportunities in customer service, virtual assistance, or bookkeeping.

3. Reduce Your Monthly Expenses Strategically

Smart savings ideas:

• Housing: Downsize your home, rent out a room, or consider house hacking.
• Transportation: Sell an extra vehicle or switch to a more affordable option.
• Subscriptions: Cancel unused or non-essential services—every dollar counts.
• Healthcare: Compare Medicare Advantage plans that include dental, vision, or other perks.

4. Max Out Retirement Contributions (If You’re Still Working)

Take advantage of catch-up contributions:

• IRA limits (2025): Up to $7,500 if you’re age 50 or older.
• 401(k) limits (2025): Up to $30,500 with catch-up.
• Consider Roth options: If you’re in a lower tax bracket now, Roth IRAs offer tax-free withdrawals in retirement.

5. Use Home Equity Strategically

Options to explore:

• Downsize and invest the proceeds.
• Open a HELOC (Home Equity Line of Credit) for emergency flexibility.
• Consider a reverse mortgage (for those over age 62) as a last-resort income option.

6. Invest for Growth — Even in Retirement

Don’t be too conservative—holding all cash can erode your purchasing power over time.

7. Create a Tax-Efficient Withdrawal Plan

Strategize your withdrawals:

• Follow the modified 4% rule: Aim to withdraw about 3.5%–4% annually, adjusting for market conditions.
• Withdraw from taxable accounts first, then tax-deferred, to optimize taxes.

Take Action Today

By making smart, intentional decisions now, you can regain control of your retirement plan and boost your income. Don’t wait—your future self will thank you.

At Iowa Retirement Benefits & Solutions, we specialize in helping people just like you create income strategies designed for retirement confidence. Let’s schedule your free and confidential consultation today.

Schedule Your Free Financial Strategy Session

Email us at info@iowaretirementsolutions.com
Call us at 319-423-3332
Click here to schedule your free consultation.

Investment advisory services are offered through Fusion Capital Management, an SEC registered investment advisor. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.

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