Some people long for retirement, others loath the idea of it. But, regardless of which attitude you take, at some point, you will find yourself retired and facing a future with a limited amount of funds. The length of your retirement is likely to be longer than initially expected because modern healthcare is extending the average lifespan.
Fortunately, there are several ways in which you can stretch your money and make it last.
1. Financial Planning
You should reach speak to a financial consultant about retirement planning long before you retire. However, it is never too late to seek professional advice and act on it.
Financial planners will help you to see what money you have and where it can be put to create a return on your investment.
Interest or dividends on investment can be a great way to earn money in retirement without having to actually work and without touching your retirement pot.
2. Limit Spending
The most obvious way to help your money last longer is to spend less. However, you also want to enjoy your retirement. That means striking a balance between spending and saving.
The key to successfully doing this is to create a budget. This will allow you to see exactly how much money you need to pay your bills and what you think you would need to enjoy life. You can then set a figure that is affordable with the funds you have available.
You may find that this is enough to make your money last or you’ll be aware of where you are short and can consider your options.
3. Keep Working
Most countries have official retirement ages but that doesn’t mean you need to stop working! Even taking retirement from your regular job doesn’t stop you from getting another job.
There are likely to be plenty of part-time opportunities in your local area and an abundance of options and opportunities online.
Taking a part-time job does more than help your financial situation. It will keep you involved with the community and mentally active. That will help you enjoy life into old age and possibly live even longer!
4. Consider Downsizing
You’ve probably already planned to downsize in order to release funds that will aid your retirement. But, you may not have considered how small you really need to go. The simple fact is that in retirement you don’t need a large house, a ground floor apartment is a more sensible option and considerably cheaper.
You can release a considerable amount of funds this way and boost your retirement savings by investing it. In fact, you should consider downsizing before you reach retirement, it will help your investment to grow larger.
5. Check Social Security
There are a number of benefits you can get through the state that you may not be aware of. It’s a good idea to make an appointment at your local office and see what they have to offer.
Anything they can give you will help your retirement funds and may provide reassurance about the future.