Strategies for the Not-Yet-Ready-For-Retirement Crowd

Some people aren't saving enough for a comfortable retirement. Here's how to improve that situation today.

Your golden years are getting closer, and you just found out that the nest egg isn't as plump and cushy as you thought it would be. You're not alone: the average Baby Boomer is facing a 40 percent income reduction upon retirement. On the other hand, there's still time to do something about it.

The first step is to figure out a post-retirement budget. List the expected expenses of living the life you want to live, and there's your target income. If your planned income won't measure up to that level, you have three basic choices: cut your costs, make some more money, or do both. Today, that is...not later.

Cut some corners

Do you really need a half-caf latte every morning? Could you carpool to work and save on both gas and vehicle maintenance? Maybe you could go jogging instead of paying membership fees at the gym. It's not fun to cut corners in your own life, but if you do it now, you won't have to later. The money saved by these little means today can grow in an interest-bearing savings account, or even a stock portfolio until you quit that day job.

Working 9 to 5

Some people just can't or won't tighten their belts, and would prefer to make some extra money instead. Did you know that 68 percent of the Boomer generation plan to supplement their retirement savings with a part time job for at least a few years after collecting the gold watch? Others may simply keep their careers alive a bit longer, which means more stress, but some significant additional cash flow, plus another year or five under their company's benefit plans. And you might be able to moonlight after hours as a part-time consultant, freelancer, or contractor. The skill set that you've built up over the years can be put to work.

Home is where the money is

By the time you retire, your kids almost certainly will have left home years before. As a result, you'll have more house than you need. Even if you've paid the mortgage off already, it's hardly an efficient use of your most valuable asset. So suck some cash out of it.

You could move to a smaller, cheaper dwelling, and push the gains from the sale into your retirement savings. It's a sensible, simple plan that could get you set for life in one fell swoop. On a smaller scale, you could draw on the equity in your home with a simple home equity loan or line of credit. There are also reverse mortgages that essentially draw a monthly paycheck out of your equity. They're designed for seniors, and you must be 62 or older before applying for one.

It's not too late to ensure a comfortable retirement, even if you're tardy out of the starting blocks. Just don't wait any longer, and get creative with the assets at your disposal.