Retirement can be a scary situation for those who discover that they did not save enough money to comfortably retire from the workforce. Such a discovery is usually made when the person who is about to retire goes to the Social Security office for the purpose of determining how much he or she will receive each month after they reach the retirement age of 62. That is when the person is first entitled to collect retirement benefits.

Keep in mind that you can continue to work, just as long as you do not exceed the income limit from such a job that will cause you to receive less than your entitled amount. You should also know that your monthly Social Security will be more if you retire at 65 and more if you retire at 67.

If you retire at 67 but you are also working, the limit of how much you can earn each year that effects the amount of how much you receive from Social Security is removed due to your age. On the other hand, If your total income is such that you must file an income tax return you must do so.

So now you are about to retire and apply for your Social Security benefits and realize that the income you will receive is less than you hoped to receive. You did not save enough money from which that unearned income will help pay your living expenses.

The time is now to reduce your living expenses and add additional income to your savings. You can do that by down sizing your home by selling your current residence and purchasing a less expensive home. No doubt, you raised a family and the home you are living within is too big for just you and your wife or husband, if she or he is still alive.

In doing so you can purchase that less expensive residence within a so called retirement state, like Florida, Nevada or Arizona. As a resident within one of those states you have the advantage of living within a warm climate for most of each year. The property taxes are lower than you would pay within a community that consists of working families who mostly enjoy a higher income and receive more services from the community.

You must also consider the cost of Medicare if you are 65 or older. You will also have to purchase supplemental medical insurance since Medicare does not cover all of your potential medical expenses. Therefore, if you do relocate to another state you must find a medical doctor who can take proper care of you.

Retirement is a life changing event. If you do not have or will receive enough money in which to pay for your living expenses and provide for medical treatment when required you will be in big trouble. That is why some people work at a job until they drop dead or otherwise are not able to work.

Then again, some people enjoy working and have some kind of job for as long as they are able to be productive members of the society in which they live.