Quitting work forever is not an easy prospect for anyone to confront. Reality sets in quickly if you don’t have a regular income anymore. Unfortunately, the bills don’t retire too. They keep arriving in your mailbox along with taxes that must be paid every year.
It is no wonder that the Federal Reserve says that 64 percent of Americans don’t think their savings are on track or are worried about whether they will have enough saved for retirement.
The Fed worked out that the median retirement savings for American adults is just $65k with an expected increase to just over $255k by the time they retire. And if you plan to retire around age 65 or 70 with an expected lifespan of 78.5 years, $255K is not going to be sufficient.
Here are three tips for getting more out of your retirement.
Delay your full retirement
Delaying your full retirement means you will have more years to earn and save while you plan for your later years. It’s provides some breathing room to stash away money and put your finances on a more secure footing.
Many retirees also pick up part-time jobs or consulting work in their old fields of expertise. This gives you more years of earning potential with far less stress than before and you can set your own timeframe. Research by AARP revealed that if you are 65 and older you are more likely to be employed part-time than younger folks. Do your research and find out if working part-time is a good fit for you. Find out the effect on your Social Security, as well as possible healthcare costs and Medicare benefits.
It may seem like a simple thing, but many folks don’t budget correctly. Your budget sets what you can spend as you know what you have and what you already need to part with monthly and annually. Without it, you can’t get a handle on your financial security or your future. A survey found that 65 percent of Americans don’t know the amount of money that they spent in the previous month. Close to a third wish that they had parted with less cash than they did when they worked out what they had spent.
Find a less expensive area to live
If you absolutely must live in the same area, you are cutting out a lifestyle boost that many don’t even think about. Moving state could give you a significant boost in the amount you have to spend, both in actual dollars and in value.
Many Southern States give you a huge bang for your buck when it comes to property and some states don’t charge income taxes.
Research by 24.7 Wall St. shows that a dollar spent on rent in a state like Arkansas differs greatly from a state like Hawaii. A dollar in the south was worth the equivalent of almost $1.60. In Hawaii on the other hand, a dollar gets you the equivalent of just 61 cents.
Retiring with more means your lifestyle is greatly improved. Getting the most out of your money will give you a better, fuller life and a happier retirement overall.
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