How to make your money last in retirement

You've worked hard your entire life and now it's time to enjoy your retirement. But how can you make sure your money lasts as long as you do? Here are a few tips to help you make your money last in retirement:

Make a budget

The first step to making your money last in retirement is to create a budget. Track your spending for a few months to get an idea of where your money goes. Then, look for ways to cut back on unnecessary expenses.

Invest in income-producing assets

Investing in assets that generate income can help you supplement your Social Security or pension payments. This can help you cover essential expenses and avoid dipping into your savings.

Delay claiming Social Security

You can begin claiming Social Security benefits as early as age 62. However, you'll receive a larger benefit if you wait until you're older. For each year you delay claiming benefits, your benefit will increase by about 8%.

Use a reverse mortgage

If you're 62 or older and have equity in your home, you may be able to get a reverse mortgage. This type of loan allows you to tap into your home equity and use the money as you see fit. The funds you receive from a reverse mortgage are not taxable and don't need to be repaid until you sell your home or pass away.

Downsize your home

If you have a large home and a small retirement income, downsizing can free up some much-needed cash. You can use the money you save on your mortgage, taxes, and other expenses to help make your money last longer.

Consider long-term care insurance

One of the biggest risks to your retirement savings is the need for long-term care. Long-term care insurance can help protect your savings if you need assistance with activities of daily living, such as bathing, dressing, and eating.

Making your money last in retirement takes planning and effort. But by following these tips, you can make your retirement years more enjoyable and stress-free.

Posted on Oct 14, 2022, in Retirement