Do you want to make every last dollar saved for retirement actually last for your entire time you’re not working?
The answer, for everyone, should be a resounding “yes.” When polled, retirees (or ones on the cusp of doing so) say their biggest fear about retiring is simply running out of money and thus being forced back into the workforce to take on a job to cover expenses when they’re 70 plus years old.
Hello, early retirement (not really).
If you’re worried about running on empty financially as retirement comes closer or you’re in the midst of it (at least a few years in), some would argue that you didn’t do an adequate job of planning. While that has some truth to it, the argument also could be made that you might have a surprise expense here or there, as well.
So how do you make your money last or even grow as you get older and make your way safely and securely money wise through retirement?
What tends to fall by the wayside the fastest is actually having a budget beyond retirement. As much as you scrimped and saved and watched all of your dollar and everything made sense, why would you think it to be a good idea to let that disappear once you hang up your work clothes for good? Far too often, you’ll hear of people running out of money because they spend it as if there still is the same amount of income available as when they were working.
You have to adjust that budgeting process accordingly with what ever drop you have in your income and also allow your saved money to play into that. If you only have $60,000 to retire on and you made that amount of money per year when you worked, and nothing about your budget changes, you can see the major flaw in that plan.
Refinancing also can be a worthwhile option as well, even thought that word often is met by a lot of grimaces and groans. The idea that you can refinance means that you lower rates, consolidate debt and thus spend less per month without extending the payments to a degree that has you paying on a home, for example, until you’re 105 years old.
Retiring should be a time to put your mind and body at ease, and that includes what happens with your money. If you’re prepared to retire and have taken all the steps to do so expertly, that’s only the beginning as the budgeting and paying attention to your money isn’t about to let up as far as importance goes.