It’s no secret that seniors are living longer than ever before. Thanks to medical advances, technology, and other factors, seniors in the 21st century are outliving previous life expectancies. What’s more, people are staying healthier for longer as well. 65-year-olds can generally expect to have plenty of years of active living ahead of them. However, with increased longevity comes the fear of paying for those extra years. When it comes to maximizing assets in retirement, seniors have options to support the kind of lifestyle they want. Here are a few ways to improve your financial situation as a current or soon-to-be retiree.
Review your retirement plan and accounts regularly.
If you’re not yet retired, closely monitor your retirement plan and contributions to your retirement accounts. Take the time to assess how your plan is progressing and make changes as necessary. Did you have a particularly good financial year? Maybe that additional income should go back into an investment portfolio or retirement savings account as a hedge against potential high inflation.
If you’re already retired, you can still make changes and adjustments to how you’re using your retirement funds. An obvious one is to spend a little less or budget your cash more closely, but you can also move your money around. A financial planner can help make sure you’re getting the most out of what you’ve saved.
Adjust your rate of withdrawal as needed.
For years, conventional wisdom has said that the best bet for retirees is to set a regular withdrawal rate from their portfolio and stick to it. However, some experts advise that it’s better to adjust your rate as needed. This way, you can account for varying inflation rates, differences in expected spending, and other variables.
Consider continuing to work part-time.
While the Great Recession forced many seniors back to work for financial reasons, there are plenty of retirement-age people who are choosing to continue working, either part-time or full-time. The economic benefits are obvious, but money is far from the only reason to consider going back to work.
According to the Alzheimer’s Association, continuing to work past age 65 has major mental and emotional benefits, including a drop in the risk of dementia. Continuing to work also decreases the sense of isolation that many seniors can feel once they leave the workforce.
Research a life settlement
If you have a life insurance policy that you no longer need, want, or can afford, talk to your financial advisor about the possibility of a life settlement. A life settlement is selling your life insurance for cash to a licensed institutional buyer. The proceeds from a life settlement are available for use however you wish, allowing you to achieve your retirement dreams. To find out if your policy might qualify, take our policy value quiz.
Retirement can feel like uncharted territory, but there are many ways you can decrease financial uncertainty during this time and make the most out of your retirement—both financially and personally. If you think a life settlement might help you reach your retirement goals, ask your financial advisor to contact Ashar today!