People are living longer than ever before. While this is certainly something to celebrate, it also means many retirees are outliving their savings. It can be disheartening for retired seniors to realize they might not be able to fund their lifestyle.
Fortunately, older adults can take steps to prevent themselves from running out of money. With planning and preparation, you can enjoy the lifestyle you are entitled to. Here are a few retirement planning tips to make your savings last.
How Seniors Can Make Retirement Savings Last
Create a retirement budget.
The first step to reaching any financial goal is planning. Make a budget and, most importantly, stick to it. Doing so will allow you to determine if your goal is feasible. If your plan is unsustainable, you can adjust accordingly.
- Guaranteed total income, including sources like social security and pensions
- Essential expenses, like health care, housing, food, and transportation
- Discretionary expenses, like entertainment and travel
- Taxes, which may include capital gains, real estate, or personal property tax
Wait to claim Social Security benefits.
Social Security benefits provide income to retired workers. It’s tempting to claim your benefits early, but your monthly payments will likely be reduced. It’s usually best to wait at least until you reach your retirement age. If you delay receiving your benefits past your retirement age, your monthly payments can increase for up to five years.
Find additional sources of income.
While social security can be a great source of income, it shouldn’t be the only money you receive. Most retirees will need more than their benefit to sustain their lifestyle. A great way to increase your revenue is by working part time. If you wait until you reach your retirement age, your benefit will not be affected if you work.
You could also consider a remote job. Many online retailers have customer service jobs that allow employees to work from home part-time. That can be especially attractive to older adults.
Save where you can.
During retirement, every penny counts. Take advantage of senior discounts, make the most of Medicare Open Enrollment, and cut out unnecessary expenses. Also look at your bank statements. Cancel any subscription services you no longer use and question suspicious charges. These savings may seem small, but they will add up over time.
Budgeting for Retirement
Retirement budgeting is rarely fun. But constantly worrying about money is worse. Creating a budget will allow you to spend more time enjoying your retirement and less time concerned about how you will fund it.
Senior Care Advisors
One budget-friendly option for seniors to consider is a move to a retirement community. Monthly fees typically include everything from meals and snacks to transportation and utilities.
Our senior care advisors can help connect you to a community that meets your needs. Contact us today at 888-514-6461 to learn more!