Retirement Secrets to Stretch a Small Nest Egg

Many Americans will not retire with six figures in savings and/or generations of retirement income. Most retirees will enter retirement with little or no savings, leaving them anxious about how long their money will last, especially with the rising cost of healthcare, inflation, and people living longer.

Fortunately, just because a person is entering retirement with little money in their account does not mean they will have a stressful retirement or be limited in what they can do. Also, all three of the above-mentioned issues can be resolved through sound financial planning, intelligent budgeting, and access to the right financial tools.

Beem offers retirees access to the right financial tools, including AI Wallet, BudgetGPT, DealsGPT, and Everdraft™. Through Beem’s tools, retirees will know exactly where they are financially and will learn how to manage their cash flow. With all of this information, retirees will be able to get the most out of their money.

Step 1 – Know Exactly What You Have and What You Need

To stretch a small nest egg, you must first achieve complete financial clarity. Many retirees will have a breakdown in the actual dollar amount they are spending as well as an inflated idea of how long their savings will last. To begin, prepare a detailed listing of your:

• Your total retirement savings/investment accounts
• What monthly income will be generated from Social Security, pensions, annuities, or part-time employment
• What are your necessary living expenses, to include such things as housing, food, gas and electricity, insurance, as well as health care needs?

When you have a clear understanding of what your true monthly cash flow is, then all uncertainty and fear disappear.

The Beem AI Wallet allows users to create a consolidated view of all their retirement accounts, tracking income and expenses in real time to provide an up-to-date evaluation of their financial status every day.

Step 2 – Build a Practical Retirement Budget

Retirement budgets are not intended to eliminate happiness; rather, they are designed to help retirees align their lifestyles with their retirement incomes. Without an accurate budget, even minor overspending can cause significant financial hardship for retirees who rely solely on Social Security and/or personal savings.

How do I know this? The amazing thing about BudgetGPT is that it provides you with customized budgeting recommendations; instead of offering generic budgeting formats, BudgetGPT does the following:

• Provides customized budgeting recommendations
• Automatically adjusts to changing spending habits
• Identifies opportunities for better use and/or redirection of your money

By prioritizing basic needs first, while still reserving reasonable amounts of discretionary funds for various travel, hobbies, and/or family experiences, retirees can have fun while managing their finances responsibly.

Step 3 – Eliminate Unnecessary Expenses

Recurring expenses represent many hidden costs to many small retirement accounts. Top offenders are:

• Unknown subscriptions
• Bank charges
• Excessive insurance payments
• High-interest credit personal loans

By simplifying, downsizing, refinancing, or eliminating unnecessary service use, many families may save hundreds of dollars each month on unnecessary expenses.

Additionally, BudgetGPT automatically identifies persistent costs and alerts users to potential cost savings, enabling them to reduce their spending without sacrificing a comfortable lifestyle.

Step 4 – Supplement Savings With High-Yield Savings Accounts

When keeping excess cash in low-interest-bearing accounts, it will lose purchasing power due to (rising) inflation. High-Yield Savings Accounts (HYSAs), which yield significantly higher interest rates than traditional savings accounts, provide a safe vehicle to earn more interest without sacrificing easy access.

Retirees can:

• A Dual Emergency Fund with (High-Yield Savings) is a great way to maintain liquidity when faced with unforeseen expenses.
• Maintain separate short-term cash (savings) accounts from their investment accounts (for easy liquidity).

Receiving passive income without any market risk.

Beem allows users to locate, compare, and choose from a variety of HYSAs so they can get the maximum benefit from their available funds, while still providing a secure environment.

Step 5 – Use DealsGPT to Save on Everyday Expenses

Stretching a small nest egg is not just about saving money but also about being a smarter spender.

Each day, expenses for travel, utilities, prescription drugs, etc., can add up quickly. DealsGPT functions as an AI-powered savings assistant, which helps with:

• Finding discounts and cashback Opportunities
• Offering less costly alternatives
• Helping retirees to shop deliberately.

Saving even small amounts daily will compound, helping the user feel comfortable and achieve long-term financial security.

Step 6 – Keep Cash Flow Flexible With Everdraft™

Regrettable and Unexpected Expenses—the cost of maintaining your home, your car, or your health—can derail even the best-laid Plans for retirement.

Everdraft™ gives you immediate access to cash without charging Interest, so you can spend what you want, whenever you want. Everdraft™ gives you all of the flexibility you need to ensure that you will never be forced to:

• Freak out when something unexpected occurs
• Sell your investments at a bad time
• Access your long-term retirement savings before they are due

Having the ability to get cash immediately is true financial peace of mind, and Everdraft™ can provide it.

Step 7 – Make Strategic Withdrawals From Retirement Accounts

Retirement Income Strategy (Withdrawal Strategies) = as important as saving for retirement because it affects taxes and can deplete retirement savings faster if not sequenced properly.

Successful retirees will:

• Utilize suggested withdrawal rates – such as the 4% rule (with some flexibility to suit their unique circumstances)
• Use a combination of taxable, tax-deferred & tax-free account types & to withdraw from each type in a manner to minimize their tax burden.
• Avoid using Early Withdrawals, which carry penalties.

Beem’s AI Wallet will simulate many possible withdrawal strategies so that retirees can choose the most sustainable plan for them over many years.

Read: Ultimate Guide to Saving for Retirement | Top Strategies

Step 8 – Downsize and Simplify for Lower Costs

For many retirees, retirement housing costs will account for most of their overall retirement income. It is possible to downsize their housing to make their small, cultivated nest egg last considerably longer.

Options for Downsizing:

• Move into a smaller house
• Relocate to a retirement-friendly state
• Live with family or a roommate group.

AI Wallet helps retirees determine their monthly housing costs so they can make informed choices when they retire.

Step 9 – Stay Active and Explore Flexible Income Options

Although retirees may not have a full-time job, they may still earn some money to help alleviate financial strain on their retirement funds. Below are a few popular ways to earn an income after retirement:

• Working part-time or on a seasonal basis
• Consulting/freelancing
• Making money from your hobbies, e.g., tutoring, crafts, writing, etc.

The AI Wallet allows people to track multiple sources of income and include them in their overall budget, so no dollar goes unaccounted for or is lost.

Step 10 – Protect Against Unexpected Healthcare Costs

The biggest uncertainty surrounding retirement is healthcare costs, since medical emergencies will deplete an individual’s savings without preparation.

Retired persons should:

• Be aware of the types of Medicare coverage available. 
• Look into Medigap or supplemental insurance plans. 
• Evaluate options, including inexpensive offerings such as Beem Health.

Everdraft™ is a product that provides immediate cash flow when unexpected medical expenses arise, avoiding the financial panic that often accompanies such events and protecting long-term savings.

Real-Life Example: How One Retiree Made a Small Nest Egg Last

Linda is 67 years old, has retired with little money saved, and relies predominantly on Social Security. Linda used Beem’s AI Wallet to track all of her expenditures and has a better understanding of where her money goes every month.

Linda’s financial situation improved when she used BudgetGPT to eliminate unnecessary expenses and establish a monthly budget that worked for her. She also used DealsGPT to save on groceries and travel. Finally, Linda used the Everdraft™ feature to help pay for an unexpected dental emergency without affecting her retirement accounts.

By developing small, consistent habits and implementing useful tools offered by Beem, Linda created confidence and security for herself.

FAQs About Stretching a Small Nest Egg

Retirement Secrets: Smart Planning Makes Every Dollar Count

Stretching a small nest egg does not mean sacrificing; it means using strategy and focus, making smart choices and using available tools. With the right tools, retirees can live comfortably, securely, and peacefully, regardless of how large or small their portfolios may be.

The Beem Financial solutions provide retirees with the tools and resources needed to take control of their financial futures and protect those hard-earned savings while continuing to thrive with less worry.

Take charge of your retirement now and start using Beem’s tools to make the most out of your small nest egg and achieve long-term financial independence.