Studies show retirees are living longer, with some estimates suggesting you could spend 30 years or more in retirement. However, many aren’t planning for it financially. With longer lifespans, retirement strategies need to evolve. Here’s a few things to consider:
Begin Saving Early: This should go without saying, but it’s crucial to start saving for retirement as early as possible, even more so than previous generations.
Postpone Social Security: For every year you delay collecting beyond your full retirement age, your monthly payouts increase by 8%, up to age 70¹. This is one aspect of financial planning where we can help you weigh your options and figure out what’s best for your specific situation.
Maximize Catch-up Contributions: As you get closer to retirement, consider catch-up contributions. These allow older savers to add extra amounts to tax-advantaged retirement accounts without surpassing IRS limits.
Consider Delaying Retirement: A few more working years can mean more contributions and potential growth for your portfolio.
Gradual Retirement: Transitioning into part-time roles can provide supplementary income and an engaging lifestyle.
Prioritize Healthcare: Longer lives often mean higher healthcare costs. Planning for these expenses, including insurance options, is essential.
Adjust Investments: While nearing retirement often involves conservative investments, maintaining growth-oriented assets may be suitable for those looking at 30 or more years in retirement.
Keeping track of all this can be overwhelming. We can help you plan for a longer life expectancy by walking you through these various aspects, which can help reduce the risk of outliving your money.
If you want to be proactive about minimizing the risk of longevity, give us a call or schedule a meeting. We’re here to help you secure your legacy across generations.
Sources:
1 Carlson, Bob. “Here’s More Evidence In Favor Of Delaying Social Security Benefits.” Forbes, 24 Feb. 2023, www.forbes.com/sites/bobcarlson/2023/02/24/heres-more-evidence-in-favor-of-delaying-social-security-benefits/?sh=3fcf61166e96. Accessed 9 Aug. 2023.
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