3 Ways to Make Your Retirement Funding Last

November 20, 2020

Everyone wants to retire early and relax. But what many people do not consider is that early retirement means the need for more retirement funding. If you would like to retire early you may need to re-evaluate your retirement plan. Most people grew up expecting to retire at the average age and have money to last them a good 15-20 years. Now that times are changing, you may need up to 40 years’ worth of retirement funds. It is always better to have too much than not enough. Times may be changing, but so are we. Here are three ways to make sure your retirement plan lasts as long as you need it to.

Keep an income as long as you can.

We understand that the whole point of retirement is to be able to stop working. If you are willing and able, we advise working as long as you can. This does not have to mean slaving away at the same job for 50 years, it means to try to keep receiving any income. You could finally have that clean out yard sale you always planned on having. This could be your lifelong dream of owning a little coffee shop. It could even mean downsizing to a smaller home. There are many ways to earn an income after retirement. The best thing to keep in mind is every penny you make now will lead to a longer, more carefree retirement.

Plan how you will spend your savings.

One of the quickest ways people squander their retirement money is by spending it hastily and ill-advised. Of course, you want to be able to enjoy your retirement and do the things you dreamed of. But, if you rush into decisions, trips, or purchases, you could spend your savings on things you do not really want or need. This is why it is essential to plan out how you will spend large portions of your retirement funds. Begin by planning how much you want to set aside for every year. It is usually a good idea to start small and expect to increase the withdrawals later in life. Then if you have any dream trips or large purchases you want to make, try to narrow it down to one at a time. This will allow you to celebrate without making any hefty withdrawals. Then see how that one purchase will affect the rest of your years in retirement.

Keep investing if possible.

If you have retired, it doesn’t mean you have to stop growing your retirement fund. Your funds will continue to draw interest and gain profits as long as you leave them in your account. Many retirees begin to get very conservative with their investments. This is not always the best way to go about your retirement. If you plan on having an early retirement or an especially long retirement, this is not the right move for you. If you need your retirement to last, you need your investments to keep growing and compounding as long as possible. You want to gain enough return each year to keep up with inflation and any unforeseen circumstances. Just like a secondary income or a job after you retire, bringing in extra funds from your investments will only help you.

On average, the majority of Americans worry about not having enough retirement funds. So, it is especially important to plan ahead. When do you want to retire? Do you think you will live past the national average? Do you think you will have medical problems or costly living expenses? We cannot predict the future, but we can try. With the right plan and company, you can feel confident in your retirement. If you are concerned about your retirement plan, contact us today, and we can make sure you get the help you need. If you are retired or nearing retirement and are worried your funding is not going to last, do not worry it is never too late. We can answer your questions, give you more tips, and help you make your retirement funds last. Visit our website today!