Tips on How to Extend Your Retirement Savings to Last
Regardless of whether you have recently started saving towards your retirement or you are about to exit the workforce, chances are that you will want your savings to last as long as possible once you stop receiving a regular income. Below are a few ways in which you can either boost your current retirement savings or get them to stretch as far as possible.
Consider Delaying Social Security for a While
For each year that you’re able to delay receiving a payment from Social Security before the age of 70you will be able to increase the amount you will receive when you do eventually apply for it. Although this benefit can be claimed from the age of 62, it is often recommended that you do your best to delay requesting it until you reach the age of 70, as this will enable you to obtain bigger payouts each month. Even delaying receiving this benefit for a year or two could see your monthly payout increase substantially. For example, if you request a payout at age 62, it will be around $18,000 per year. However, if delayed until 70, your payout could be as much as $31,000 per year.
Save Extra Funds
Are you still working and receiving decent raises each year? If so, resist the urge to spend the full amount of your raise and put it into a retirement account instead. Although you may be tempted to spend increases on vacations, new clothing or even a vehicle purchase, it’s important to remember that the longer each dollar is saved in an interest-bearing account for, the more it will benefit you once you retire.
Consider Downsizing and Saving the Difference
If you’re on the verge of retiring and need to give your nest egg a boost, it can be a good idea to consider downsizing your home. Opting for something a little smaller will not only reduce the amount of money and time you will need to spend maintaining lawns, painting your home or performing other repair work; you will be able to save a substantial amount of money on utilities and property taxes as well. Any funds that you save or accrue as a result of downsizing your living space should immediately be invested towards your retirement.
Speak with a Professional Financial Advisor
Another great way to ensure that your retirement funds will last as long as possible is to schedule a consultation with a qualified and experienced financial advisor. They will be able to take a look at your current situation and advise whether you need to start investing more or whether you are on the right track in this regard. When speaking with them, it’s essential that you be 100% honest and upfront with regards to your current spending patterns and budget, as this will enable them to provide you with the correct advice.
If you would like to obtain further information regarding how to extend the life of your retirement funds as much as possible, contact our team today.