Here's a piece from Money magazine that offers some thoughts on how to make your money last in retirement. One section of it specifically focuses on alternatives to retiring. Their thoughts on options you should consider in case you don't have enough money to retire include:
You might consider looking for another job. You may not be able to find one that pays as much as your current gig, but even if you can find something that pays enough for you to live on then at least you won't be dipping into that IRA money so soon, which means it can continue to grow and you'll be able to increase the size of your draws later. If the job pays medical insurance, so much the better because that's an expense you won't have to meet on your own. And if you can postpone taking Social Security a couple of years, you'll get a bigger payment when you eventually start.
If starting a new job isn't practical for some reason, then I think you should at least try finding some part-time work. Alas, your Social Security benefit may be reduced if you work while drawing Social Security benefits before your full retirement age.
So basically, if you can't afford to retire, you need to keep working -- at least part-time. This isn't all bad. There are some great advantages to working after you "retire." And some people advise you never retire.
Another option: reduce your expenses so you can afford to retire. For instance, move to a foreign country or at least a cheaper place in the U.S.
The best alternative for most of us is to save enough to have a great retirement (however we define that -- and even if it means we'll work at something). For some ideas on how to retire with enough saved, see these posts:
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