If you’ve been working at home for a few months now, you’re probably enjoying dressing like you’re on the way to the golf course as opposed to the suit or dress you would normally wear to the office. Let’s be honest. Golf attire may be WAY fancier than what you’re wearing as you read this. If you are nearing retirement age, you’ve probably been thinking about that a lot lately. Hopefully you’re not too worried about that retirement life, but if you do have some concerns about your money lasting, here are three ways you can make sure you’ll be able to enjoy being retired…
Wait as long as you can on social security: If you turn 62 this year, you’ll be eligible for full retirement at age 66 and 8 months. Being 62 qualifies you for early retirement, but you’ll take a hit of over 28 percent. So, while you may feel ready to start receiving those benefits now, you’ll get a lot more bang for your buck if you can wait a few more years. And if you can wait until you’re 70, you’ll get about 76% more than you would at age 62. Wow! I’m not going to tell you when to retire, that’s completely up to you. But holding out as long as you can definitely has some advantages.
Plan ahead (even if you should have planned further ahead): The magic number for withdrawing your retirement savings has long been at 4% annually. You may have to adjust that rate every year due to inflation, but if you can get by without too much of an increase, it’ll help down the road. The best plan of action would be to get with your financial advisor, figure out the magic amount that will work for you, design a budget, and stick to it.
Get a part time job: You worked your entire adult life. You may have zero desire to “punch the clock” again. But truth be told, supplementing your income in retirement is a great way to make your money go further. Plus, you’ll stay active and that’ll keep you feeling good. And you never know, if you don’t have a project or hobby to spend your time on, you may welcome having something to keep you busy.