How to Make Your Retirement Savings Last

By | May 4, 2017

Even if you have planned every aspect of your life well, there is always a chance that you will outlive your savings or outspend your money. If you are worried that you will run out of money before you die, here are some things that you can do to alleviate your concerns:

Buy longevity insurance

With this insurance, you will give the company a very small chunk of change when you reach the age of 65. Your insurance company will then invest it for you until you reach the age of 80 or 85. At this point, they will start paying you monthly payments until you pass on: if the policy costs 25,000 dollars at the age of 65, you might start receiving about 3,000 dollars when you are 85 years old.

This money usually comes when most people start having huge medical bills. Following this approach makes planning for the long-term easier because your payout will be determined by when you purchase the policy. You can start spending your other assets because you are certain they will be replenished in future.

The main drawback of this plan is that if you die early, you will not get your money’s worth.

Ladder your bonds

This option can give you a safety net regardless of whether the interest rates fall or rise. How does a ladder bond work? You have to buy equal numbers of Treasury bonds that will mature in 1, 3, 5, 7, or 9 years to make sure that your portfolio has an average maturity of 5-6 years. These short terms keep you from tying your money up but the long-term ones yield higher returns.

Consider long-term care insurance

Predicting how much money you will need for medical care in old age is not easy. In traditional long-term care policies, insurance companies usually pay daily benefits that will help the policyholder to pay for long-term care if he/she cannot perform some activities, including bathing, eating, and using a toilet.

However, not all policies are the same. You should opt for the ones that pay a flat rate each month, allowing you to spend the money as you please. This could include spending it on a family caregiver, cruise to the Bahamas, or nursing home.

Earn more money

Are you looking for easy ways to bulk up your bank account during your retirement? You should consider doing some hobbies or things that you have always wanted to do to earn an extra buck.

For instance, if you can do a “help desk” job that require the same knowledge you have amassed over a  lifetime of work, you should start doing so.

If your mind is too clouded to do any demanding task, you should consider using a mind-enhancing product. Are you considering buying a mental enhancing product like Optimind? You need to perform plenty of research to find the best one for your needs and body. Doing so will keep you alert and allow you to earn money that keeps you from withdrawing your retirement funds.

Delay taking social security

If you start getting benefits at the age of 66, you will get all your monthly benefits. However, delaying your retirement benefits will ensure that your check keeps increasing.

If you wait until the age of 67 to start taking benefits, you will receive 8% for waiting twelve months. At the age of 70, you will receive 32 percent more than what you would have received at the age of 66, which means that you have to be patient.