Thanks to huge advances in healthcare and science, we’re living longer than ever on average. While this is great news for humanity as a whole, it also gives some reason for financial worry.
With all these advances, your retirement savings are likely going to have to last longer than ever. So even if you’ve already begun planning for your golden years, you should take note of these ways to make your retirement savings last:
Don’t dive headfirst into retirement
Going from a full career to not working at all can be an abrupt transition; and not just in a financial sense. Many retirees not only keep a sense of purpose through part-time work, but have also realized that it’s a smart way to make your retirement savings last.
Working part time can at least partially reduce the amount you need to draw from your retirement accounts, while giving your retirement savings a chance to stretch further. To test this out, add your approximate earnings from a part-time job into your retirement budget, and see how it affects your financial life.
Increase your investments sooner rather than later
Rather than waiting until later in life to play retirement catch-up, you can make your retirement savings last by contributing more into your accounts now. Granted, this seems like a no-brainer solution, but the power of compound interest means that you have to contribute far less income now to see the same results later.
Especially if your income isn’t going to drastically change in the future, this is a great way to boost your nest egg and make your retirement savings last.
Delay social security
Even though social security benefits can be taken at 66, a smart way to make your retirement savings last is to delay taking them. At age 66, according to the IRS, you receive 100% of your benefits. However, each year you delay taking your benefits – up to age 70 – you get an increased return. For instance, by waiting until age 67, you’ll get 108% of the monthly benefit because you delayed getting benefits for 12 months.
Learn more about how to make your retirement savings last
At LexION Capital, we help our clients live a worry-free retirement through meticulous investment plans. We can also work individually with you to ensure your retirement savings last. If you’d like to learn more, please contact us today.