I'm Retiring With $100,000. Am I in Good Shape?

You'll often hear that it's important to consistently save in an IRA or 401(k) so you can carry a large pile of savings with you into retirement. But it's hard to prioritize retirement plan contributions when you have a mortgage loan to pay, kids to feed, and medical bills to cover.

If you're nearing retirement with a nest egg worth $100,000, you're reasonably on par with the average 60-something today. Americans in their 60s have an average retirement savings balance of $112,500, reports Northwestern Mutual.

Unfortunately, though, you may not get a ton of annual income out of a $100,000 nest egg. So it's important to do what you can to supplement your income as needed.

Breaking down a $100,000 savings balance

When you see the number $100,000, it reads like a big one. But remember, that money has to last throughout your retirement. And your retirement could easily end up being 20 or 25 years long. 

Financial experts have long suggested withdrawing from retirement savings at a rate of 4% per year to help ensure that money doesn't run out. But at 4%, a $100,000 nest egg only gives you $4,000 of annual income.

Now, you'll most likely have Social Security on top of that. And the average monthly benefit today is about $1,850. By the time you retire, it might be even higher. So that's a good amount of income right there.

But all told, a $100,000 retirement savings balance isn't a lot of money. So if that's what you're looking at retiring on, you may need to make an effort to work as a senior, and get creative with your home.

Your retirement isn't necessarily doomed

A $100,000 retirement savings balance is far better than having $0 to your name. If you're willing to continue working in some capacity and are able to monetize your home at the same time, you may find that you're able to live quite comfortably as a retiree.

Let's talk about the former first. It used to be that working in retirement would mean doing things like taking a boring desk job or committing to bagging groceries at a supermarket three days a week. Thanks to the gig economy, working in retirement now looks very different. 

You could take a hobby you love, like crafting, and turn it into an income source. Or you could do something like catering or pet care if you enjoy doing that. 

Meanwhile, if you own a home as a retiree, perhaps you have an opportunity to turn it into an income source. Rent out a finished basement or garage if you no longer need the space. Or if you have a two-car driveway and only one car, rent one of your spaces out. 

You can even rent out portions of your home for storage if you don't want someone living under your roof. There are many options to consider.

Retiring on $100,000 isn't ideal. But it's not a terrible thing, either -- especially if you're willing to continue working in some capacity and get creative with your living space.

Of course, if you want to set yourself up to retire with more than $100,000, start early -- ideally in your 20s -- and aim to invest aggressively by loading up on stocks in your brokerage account. But if you've already missed that boat, don't despair, because all certainly isn't lost.