So many people look forward to retirement, but when the actual day gets closer, it can bring serious anxiety. The fact that you will no longer be going to work everyday means that you will no longer be receiving that regular paycheck. This is cause for many men and women to become filled with worry. Yes, there is social security and many people do have planned retirement savings from work, but those funds are limited, which means it is helpful to know how to stretch your retirement funds.
Many Options to Stretch the Budget
Whether you decide to cut coupons or you sell your home, there are many ways to make your retirement funds last a bit longer. With the cost of living increasing every year, most retirees need to know how to many the money go a little farther.
Live Off of Your Interest
One tip for stretching your money is to try to live off of your interest. If you have at least one million in your retirement account, you could live frugally off of the interest. For a retired couple, three percent interest would give you $30,000 per year, plus your social security. This would keep your principle intact.
Try a Part-Time Job
Another useful tip for stretching funds is for retirees to get a small part-time job. Many retirees will find jobs doing things they love, like working at bookstore or on a golf course. A part-time job is a nice way to make a little extra money and leave the retirement balance to grow. The pocket money that a part-time job provides may not be much, but anything helps.
Talk to Your Money Manager
If you are looking for specific tips to stretch your retirement budget, the best person to speak to is your own personal fund manager. Since this person knows about your personal retirement fund, she is the best person who can help you know what you have and how long it is expected to last. Your money manager will also be able to help you realize the lifestyle that your retirement budget will allow.
Investigate Longevity Insurance
There are a few other ways to make your money last through your retirement. It might be worth your time to investigate longevity insurance. This type of insurance begins at age 65, when you start putting some money away in an insurance annuity. The insurance company invests it, and if you live a long time, you can begin to collect it. Longevity insurance gives you a guaranteed dollar amount at a time when your retirement money could begin to get low.
Options with Social Security
Another possibility to stretch your retirement money is to wait to collect social security. The longer you wait, the more money you get each month. But, before you make this decision talk to a retirement money expert to see what is the best for your budget, because the wait might actually cost you more money. It is always best to meet with a retirement expert before you make any major financial decisions.