It’s pretty much a known thing that retiring on just Social Security means retiring on very little money. That’s why American workers are often encouraged to save for retirement as well as they can.

But sometimes, life gets in the way. When you don’t earn a particularly large paycheck, it can be very hard to come up with the money to fund your IRA or 401(k) plan — especially if you’re also grappling with costs like homeownership and raising kids.

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Now it’s not particularly uncommon to enter retirement with little to no savings. And in that situation, seniors are often advised to work so they can supplement their income.

There can be numerous benefits to having a job in retirement, from the extra paycheck to the social connections. But working in retirement isn’t for everyone. And if the idea sounds terrible to you, you shouldn’t feel compelled to do it.

But you may need to come up with that extra money from somewhere. To that end, here are three alternatives to look at.

1. Downsize your home

Many seniors enter retirement with paid-off homes. And in recent years, U.S. home values have really taken off.

In 2022, median home equity for homeowners ages 65 and over was $250,000, according to the Joint Center for Housing Studies of Harvard University. This means that if you’re willing to downside, you can potentially pocket a pile of cash in the course of selling your home and use that to replace the savings you weren’t able to build.

Plus, if you don’t like the idea of working a paying job in retirement, you may also not want the job of maintaining a larger house. Downsizing could afford you the opportunity to spend your days doing the things you love instead of mowing the lawn.

2. Get rid of a car — or two

Having a car is often crucial when you work. But if you’re retiring in a walkable area, you may be able to downsize from a two-car household to just one. Or, it may be feasible to get rid of your household cars altogether. That could result in huge savings.

Remember, the cost of owning a car goes beyond whatever monthly auto loan payment you have. There’s insurance to think about, maintenance, and inevitable repairs. It pays to run the numbers to see if a combination of walking, public transportation, and the occasional rideshare allows you to trim your costs. If so, you may not need the extra income from a job.

3. Delay Social Security

If you’re nearing retirement without much savings, you may end up pretty reliant on Social Security to cover your expenses. So the more money you’re able to bring home each month, the easier it might be to cover your bills without having to work.

You’re entitled to your monthly Social Security benefits without a reduction at full retirement age. But for each year you delay your Social Security claim past that point up until age 70, your monthly benefits grow 8%.

A guaranteed income boost that large could easily take the place of earnings from a part-time job. Plus, if you work until 70, you might manage to build a bit of savings you can dip into.

There’s nothing wrong with working during retirement. And some seniors absolutely love it. But if it’s not something you want to do, know that you may have options that don’t require you to go out and earn a paycheck.

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