Retirement is supposed to be a stress-free period where we can finally take a break from work to enjoy the fruits of our labor. However, if you’re like many seniors, you may fear that it will be a time of financial uncertainty, especially when it comes to making their retirement savings last longer.
If that sounds familiar, don’t worry. We’ve got a list of ways you can help make your retirement savings last longer.
1. Determine How Much Money You Need
Before making decisions about your retirement savings, determine how much money you’ll need each year to live comfortably. Calculate all your essential expenses, such as:
- Housing
- Food
- Transportation
- Healthcare
- Non-essentials, like travel and entertainment
Once you clearly understand your expenses, you can determine how much money you’ll need to support your lifestyle throughout retirement.
2. Consider Working Part Time
If you find that you need more income to make ends meet, consider working part-time during retirement. Working part-time can help you stay active and engaged in your community, which is essential for your physical and mental health.
3. Make the Most of Your Retirement Savings Accounts
To make your retirement savings last longer, consider increasing your personal contributions to your IRA or 401(k) each year. If you’re over 50, you may also be able to make extra contributions to your retirement accounts to catch up, which can further increase your savings.
It’s also important to monitor your retirement accounts and adjust your investments as needed. This may involve diversifying your portfolio to minimize risk or changing your investments to higher-yield options to help grow your nest egg.
4. Delay Taking Social Security
One of the primary decisions you’ll need to make regarding your retirement savings is when to start taking Social Security benefits. While you can start taking benefits as early as age 62, delaying taking them until you reach your full retirement age or even later is generally more beneficial.
5. Consider Downsizing
One more way to make your retirement savings last longer is to consider downsizing your home, which may help you reduce expenses and eliminate the burden of maintaining a larger home. If you’re like many adults, downsizing can provide you with a one-time lump sum of cash to use to supplement your retirement savings.
6. Don’t Forget Health Care Costs
One of the biggest expenses for seniors is healthcare. Therefore, planning for these expenses is important when deciding how much money you’ll need to retire. Consider purchasing a Medicare Supplement Plan, which can help cover the out-of-pocket costs that Medicare doesn’t cover. You may also look into purchasing long-term care insurance or other types of insurance to help you cover healthcare costs throughout retirement.
7. Be Mindful of Your Spending
A significant risk to your retirement savings is overspending. Therefore, you must be mindful of your spending and avoid impulse purchases. If possible, be sure to live within your means and avoid taking on debt or making large purchases that can impact your retirement savings.
8. Travel on a Budget
Travel is a popular retirement activity, but it can also be expensive. To make your retirement savings last longer:
- Travel on a budget.
- Look for deals on flights, hotels, and even restaurants, and think about opting for less costly destinations.
- Consider traveling during off-peak times, which can also help you save money on travel expenses.
Making your retirement savings last longer may seem overwhelming initially, but by following these tips and strategies, you can set yourself up for a comfortable retirement that will last as long as needed.
For more information on how to remain cared for into your golden years and beyond, visit us online at Companion Healthcare or call us at 405-293-9000. We’re happy to help!
