Boomers Face a $115,000 Shortfall! Here’s How to Close the Gap

Step 3: Make Your Money Work Harder

Here’s the good news: there are strategies that can stretch your resources.

• Add guaranteed income streams: annuities, pensions, or rental income can cover your essentials so you don’t have to constantly dip into savings.

• Use the bucket strategy: keep some cash and short-term investments for near-term needs (1–3 years), and invest the rest for long-term growth. This way, you’re not selling investments in a down market just to pay bills.

• Be smart about RMDs (Required Minimum Distributions): pulling too much from tax-deferred accounts can create a tax hit — plan your withdrawals carefully.

• Cut discretionary spending: not fun, but even trimming 10% off entertainment, subscriptions, or shopping can save thousands over a decade.