7 Ways to Make Your Retirement Savings Last

2. Delay Claiming Your Social Security Benefits

If you decide to keep working, consider not collecting your Social Security benefits until you turn 70. Delaying them until this age can mean up to an 8 percent higher annual payout in your benefits.

Although you can begin collecting Social Security benefits nearly a decade earlier at age 62, if you’re healthy, able to work and have a job, don’t be so quick to cash in those benefits if you don’t need to. That said, the Social Security Administration won’t give you any extra credit for delaying your benefits once you’re over 70.

3. Incorporate Roth Accounts into Your Retirement Plan

Contributing money to a Roth IRA or Roth 401k allows your money to grow tax-free — and your qualified distributions to come out tax-free — in retirement. With traditional accounts, you receive a tax deduction for your contributions, but you pay income taxes on your distributions.

In addition, Roth IRAs don’t force you to take required minimum distributions as long as you’re alive, which allows your money to keep growing tax-free in the account until you need it. Other retirement accounts require you to start taking distributions when you turn 70.5 even if you don’t want to. Regardless of which type of account you use, your contributions can qualify you for the retirement savings contribution credit.

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