How To Make Your Retirement Savings Last
Determine how much money you need during retitrement
You’ve finally made it to retirement and the last thing you want to be doing is worrying if your funds will last. Inflation, market changes, and unexpected events can all be on your radar and you want to make sure your budget can stretch to cover it all. To help you achieve your goals, we created a guide of 5 ways you can make your retirement savings last.
5 Ways To Make Your Retirement Savings Last
These are 5 tested and true ways to stretch your dollars upon retiring.
- The 4% Rule
Aim to draw no more than 4% of your retirement savings out during your first year of retirement. That number can be adjusted as the years go on and inflation ensues, but it is a steady way to ensure you are not overspending.
For example, if you go into retirement with $500,000 and you aim to spend 4% each year, you are left with approximately $20,000 a year for expenses. You can increase this amount each year as needed due to inflation and circumstances.
- Use Those Senior Discounts
One of the greatest benefits of getting older is the crazy amount of senior discounts available. There are thousands and thousands of senior discounts just waiting to be used. Many lists of all discounts available to seniors are online and include everything from Amazon to Valvoline. These can save you hundreds of dollars every year that can go towards the better things in your life- like your grandchildren!
- Work For Fun
Many times, fully retiring can lead to boredom. If you are able, consider picking up a part-time position in a field you have always been interested in. It may not pay all the bills like a full-time position, but it will be a great way to make friends and still get out while having plenty of time to still do the things you enjoy!
Many grocery stores, retail stores, and office buildings are looking for part-time employees. This could be a great way to bring in some extra cash and limit spending from your savings.
Your house payment or rent will most likely be your biggest expense in retirement unless you are living in a home that is fully paid off. Most likely, you do not need the space of a large and expensive home. Consider downsizing to a small apartment or smaller home. This will cut down on overall home payments and also, the cost of utilities.
- Get A Roommate
As we said before, housing is often the biggest expense you will face upon retiring. The Golden Girls were living together for a reason! It is much cheaper to retire with roommates, especially if you are single. Some people don’t want to move out of their current home, but it is just too big for them. That is the perfect time to get a tenant. Splitting utilities, along with rent payments- you will be set!
Along with using these tips to stretch your retirement savings, consider using our retirement income calculator. This will help you determine how much money you may really need during retirement. It is also best to book an appointment with a financial advisor to create a retirement budget that works for you.