Most people spend their whole lives saving money for retirement, but the National Institute on Retirement Security finds millions of Americans are unprepared for retirement, with a total estimated national retirement savings deficit between $6.8 and $14 trillion dollars.1 Factors such as inflation, market crashes when you have your retirement savings tied up in equities and overall downturns in the economy can spell disaster for retirees.
Luckily, you can stretch and maximize your retirement savings any number of ways, from drastic financial changes to simple spending tweaks. Here are some strategies you can utilize to make the most of your retirement funds.
Ways to Stretch Your Retirement Income and Savings
- Delay collecting Social Security – While delaying collecting Social Security is less than ideal for some people, a delay can maximize your eventual Social Security income. If you’re making an excellent salary and are physically able to work longer, it would be advantageous to wait, as higher lifetime earnings can result in more benefits when you choose to retire. Benefit eligibility begins at the age of 62, but foregoing collection of your benefits until you’re between the ages of 65 and 67 can yield 20 to 30 percent more money than beginning to collect immediately when you’re eligible.2 It’s best to visit your regional Social Security office to determine exactly what you’ll receive at what age.
- Stay healthy – Staying healthy well into your golden years can cut down on your out-of-pocket expenses significantly. Retired couples spend an average of $250,000 on basic medical expenses for the remainder of their lifetimes. Fortunately, many conditions and diseases can be prevented or managed with proper diet and exercise, so keep up a healthy diet and moderate alcohol consumption to minimize your health care costs in your later years. That way you’ll have more money to save for emergency situations.
- Re-evaluate investment fees – Balancing your portfolio is necessary if you want to maximize your retirement savings. Re-evaluating investment fees will ensure you’re not overpaying as you want your expense ratio to be as close to one percent or less as possible. Evaluate all your investment accounts and cut any redundant or unnecessary fees you have. Eliminating redundant or unnecessary fees could save you thousands of dollars, and any savings will ultimately boost your retirement funds.
- Downsize your lifestyle – Creating a steady cash flow may require downsizing. It doesn’t mean you need to completely sacrifice all the things you enjoy, as slight changes can go a long way toward improving your finances, like skipping a cup of Starbucks coffee and making a cup of joe at home instead. Eating out less or buying cars used instead of new can help you save thousands of dollars now that you can spend later.
Find Value in Retirement Living by Moving to Twin Lakes Community in Burlington, NC
Retirement living options are broad-ranging, but, one option stands heads above the rest in terms of comprehensive services, amenities and security for future needs – Continuing Care Retirement Communities. CCRCs generally offer independent living, in addition to higher levels of care should future needs arise.
Twin Lakes Community is a CCRC that is home to over 500 people in independent living who have come from all across the country to live an intentional, purposeful life. With a 35 year history of building a financially sound, vibrant community, we are considered to be an excellent value and overall choice for a CCRC in North Carolina and beyond. We recognize our residents have their individual lifestyle preferences and provide a wide range of living options from one bedroom-one bath apartments to 2400 square feet garden homes with a two car garage. At Twin Lakes, you are likely to find a home that fits your style and budget.
Visit our website at www.twinlakescomm.org and contact us to schedule a tour of your new home!
1 – https://www.investopedia.com/articles/personal-finance/090215/5-ways-stretch-your-retirement-dollars.asp
2 – https://www.bankrate.com/retirement/7-ways-to-stretch-your-retirement-income/