A common recommendation for retirees is to cut back on spending if they don’t have enough savings to pay for essential expenses. A recent study by the Employee Benefit Research Institute (EBRI) shows that only 60% of U.S. residents between the ages of 35 and 64 are on track to cover 100% of the average costs for retirees.

But cutting back spending is not your only option.

Retire with enough incomeYou can also buy income annuities — with savings you have now. Then you can count on a guaranteed and likely higher amount coming in every month, including in later years when home care and large medical bills are more probable. You will take on the survival risk in the process but that may be preferable to reducing your lifestyle.

My point is this: While you can theoretically cut your spending to avoid running out of money, as EBRI pointed out in its study, that isn’t the only solution. You can also increase your income and enjoy the type of retirement you imagine.

Visit Go2Income for more ideas about how you can increase your retirement income.