We all love a long life. Yes, it is a great gift to live over 100 years, but the longer the life, the more retirement savings you would need. You will also need the savings for your retirement to last.
There are some ways you could expand your savings by extending the earning period and spending less. Knowing how much it costs you to live is also a great tip for increasing savings.
An average American may live up to 77 years, according to research done by the Centers for Disease Control and Prevention. Now, if you are healthy and take good care of yourself, you could live more than 80 years.
While this means spending more time with your children and family, traveling the world, and maybe enjoying leadership under many governments, it also means that your retirement savings must last for a long.
It does not matter when you plan to get off work, but having a sound retirement savings plan is vital. In this article, we will offer you five good strategies to help you plan so your savings last for longer:
Know Exact Expenses
When you retire, you must be very careful with your basic expenses, which include food, health, clothing, and shelter, as well as other lifestyle expenses such as traveling, entertainment, and holidays.
Many financial advisors suggest that any income in the form of pension savings, investment withdrawals, social security savings, and others should be deposited in a separate account to cover basic monthly expenses. It can be called a basic account, and the rest be used for lifestyle expenses.
Now, if by chance you live longer, your lifestyle may become a little expensive, and then you could channel the savings into your basic life account, and your savings will last longer.
Make Use of Tools Such as Retirement Savings Calculators
If you are not sure that your savings would cover your retirement period, and you still have a specific life that you would want to live with the available savings, then a calculator will come in handy.
Retirement Calculators, available online, provide a clear guide on what income you may have in retirement and the time it may last. Such tools calculate these figures based on the income, retirement money in your retirement savings account, and retirement age.
Look Out For Best Retirement Investment Plans
Thinking of investment options is the best way to save for retirement. Some good investment plans can help you generate more income and edge your money against inflation that comes with time.
One of the best investment plans is; Tax-Free Bonds. If you are looking for an investment plan that will give you regular retirement income, you should consider investing in Tax-Free Bonds. These are long-term bonds with a maturity period of 10 to 20 years. It is an ideal retirement savings plan, better than fixed deposits as well as debt funds.
Other good investment plans include; Fixed Deposits, Senior Citizens’ Saving Scheme, Public Provident Fund, Mutual Funds, and National Pension Scheme.
Think Through Working Part-Time after Retirement
Working part-time is one of the best retirement plans for individuals who want to make savings last as long as possible. If you can earn money working after retirement, then you would not have to keep tapping into your savings account each time you want to spend.
You can also channel some of your retirement money into asset investment while you keep on spending what you earn. However, working after retirement should be done moderately to avoid tax penalties.
Related: 8 Easy Passive Income Ideas
Resist the Urge to Support Your Family Members Financially
Some family members would lure you into spending on them. If you have some lazy family members who want to depend on you 100%, you may need to pause and analyze.
This does not include kids and spouses who depend on you but other grown-up members who don’t like working hard. Remember that your careless spending habits will affect your retirement savings and how they last.
