If you reach age 65 today, you can expect to live until you’re 84.3 years old if you’re a man and 86.6 if you’re a woman, according to the Social Security Administration.however, that only 29 percent of respondents had more than $100,000 in retirement savings. Breaking down the retirement savings by age, 29 percent of baby boomers still had nothing saved, and more than half had less than $100,000 saved.
To avoid retiring with nothing to live on, you need to start saving now — and start planning how you’re going to stretch those funds to last you through your golden years. Read on for seven ways to make your retirement savings last.
1. Ease Your Way Into Retirement
Instead of cutting off your career completely — especially if you’re taking early retirement — keep working on a part-time basis even if you’ve reached retirement age; this way, you can take retirement for a test drive. By continuing to earn at least a portion of what you’re used to making, you can reduce or eliminate the chances you’ll need to tap into your retirement fund early and you can postpone claiming your Social Security so you’ll receive higher benefits down the road. In addition to providing a continued stream of income for yourself to reduce how much of your nest egg you need to tap, phasing your way into retirement can help ease your transition from working full-time to not working at all.
“My advice is to get a feel for your income versus expenses and gradually add the activities that you have looked forward to into the income and expense flow,” said Frank Drago, president of Citizens Securities Inc. “After working for 30 to 40 years, the tendency is to fill the time with vacations, shopping, increased golfing or other activities — all of which cost money.” Before committing to being retired, workers should first get a good feel for what their ordinary day would look like in retirement, Drago said.