Putting more into a 401(k), IRA, or RRSP (if you're Canadian) is one of the best ways to improve your retirement picture. At the very least, you don't pay taxes on what these plans earn until you make withdrawals - and tax-free withdrawals are possible with the Roth IRA - so your savings have a jump on accounts where you must pay out taxes every year.
Defer retirement (and Social Security)
At age 62 you'll receive only 80% of your full U.S. Social Security benefit for the rest of your life. Waiting until 65 can get you everything you're entitled to from the system.
Work part-time once you retire
Your current boss may allow you to stay on the job part-time after you "retire." You may be needed to help train your replacement, fill in for absent employees, or help with special projects. Signing on with a temporary agency could help you pick up more job skills, update those dates on your resume, and become friendly with contacts for future work.
Tap your resources
If cleaning your house is getting annoying now that the kids are gone, now's the time to think about trading the homestead in for something easier to maintain. In the U.S., you can sell your current home and exclude up to $250,000 in capital gains ($500,000 for joint filers) from income taxes - perfect if you plan to buy something that's worth less than the current place. You can use this exemption if the home you're selling has been your primary residence for at least two of the five years before the sale date.
Another way to use your home's value is to take out a reverse mortgage, which allows you to tap your home's equity tax-free without having to repay the loan while you own the home. But this route isn't for everyone. Though fans have noted that these vehicles can add almost 20% to a senior citizen's monthly income, some of these loans carry limits, complications, and fees that can easily wipe out that benefit. In fact, counseling is now required by the U.S. Dept. of Housing and Urban Development before a homeowner can take out a reverse mortgage.
