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How to Make Your Money Last in Retirement


Since no one knows how long we will live or what our future may hold, it’s understandable to have questions and concerns about the road ahead. 

Whether you are already retired or just beginning to consider your retirement years, the question "Will I outlive my money?" is most likely a top concern. Thankfully, there are several ways you can increase the odds that your savings will last as long as your retirement. Here are four tips to help your money last and work in your favor during these milestone years: 

1. Have a Retirement Spending Plan

Like a budget, a spending plan helps you organize your finances for activities such as traveling, shopping or other leisurely activities versus housing, food, or other basic living expenses. Having a plan that prioritizes between “must-haves” and “nice-to-haves” will help you establish what you’ll “need” and “want” to afford in retirement. Having a solid Retirement Spending Plan is vital in determining how much you will need to save for retirement and is one of the most important components of a well thought out financial plan.     

During your working years and into retirement, you and your wealth advisor should revisit your financial plan regularly to ensure you are still on track to meet your goals. They’ll also work with you to adjust the plan as your life and goals change. 

2. Keep Earning

If you’re passionate about your career or enjoy helping others through your work, you may benefit from waiting to retire for an extra year or two. If you’re healthy enough and willing to continue working, not only does waiting mean that you can save more for retirement, but your Social Security benefits could end up being greater. 

This will also allow your retirement assets to have an extra year to grow to give you an extra cushion. Encouraging your wealth to last throughout your retirement is easier to manage when you’re still earning, and your finances don’t need to work as hard. 

You may also want to consider transitioning out of the workforce slowly. If you’re able to take on less responsibility or work part-time at your current company, you may find that continuing to work is less of a chore and beneficial in the long run. You can consult – set your own hours – pick which projects you want to pursue. Or, find a new part-time job in an area that you have always had an interest in like working at a garden center, music shop, winery, or a tennis club. You’ll earn some extra money doing something you enjoy and provide a little more room in your spending plan to take an extra bucket list trip, contribute towards your grandkid’s college education fund, or even upgrade your car!

3. Protect Your Health

We all know that being sick can take a toll and is quite costly. Making healthier choices throughout our lifetime can help reduce the odds of suffering from conditions such as diabetes, high blood pressure, arthritis, or other chronic illnesses, in turn lowering healthcare expenses.

As we grow closer to retirement, it’s important to consider that spending money on a healthy lifestyle, as well as receiving regular screenings and accurate medical care, can help improve quality of life. Spending a sufficient amount on preventative care now can be beneficial to possibly avoiding more costly expenses in the future. 

4. Take Control of Your Savings

When it comes to funding your retirement, most Americans use a combination of Social Security, savings and pensions. It’s important to set yourself up for success and make good choices now for your future. 

Keeping in mind the structure of your costs and the details of your income now as a pre-retiree will help you maintain your wealth in the long run and throughout your retirement. Remaining in control of your finances and always being aware of how much you’re spending will allow you to focus your time and energy on the experiences that matter most to you. 

We are here to help!

A wealth advisor, such the ones at Prestige, have been helping people retire for decades. They know the speed bumps that can come up during retirement – the ones that you might not be thinking of – they can help you have a better target of how much you will need to save before you can trade in your power suit for a bathing suit!

It all starts with a complimentary review of your retirement plan. If it’s good, we’ll tell you. If it has gaps, we’ll help you find ways to fill them. Call us at 908-782-0001 or click below to schedule your review with us today!

Schedule a Consultation Today

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.