Many adults have less than $10,000 saved up for retirement.
Understandably, most of us are worried about running out of savings in retirement.
Thankfully, there are several ways to ensure your money will last for the long run.
Money magazine has more:
1. Reduce your ‘must have’ expenses
Lowering your fixed expenses — shelter, food, transportation, insurance, utilities and minimum loan payments — can help you withdraw less from your savings, which in turn can help your money last longer. One powerful way to reduce expenses is to downsize to a smaller home if you can reduce or eliminate your mortgage payment and shrink other costs such as property taxes, utilities and insurance. Getting rid of a car could save you nearly $9,000 a year, which is the average cost of car ownership according to AAA. Eliminating debt before you retire is often a good way to reduce expenses, but consult a fee-only financial planner before withdrawing retirement funds to pay off a mortgage. Such withdrawals can trigger a big tax bill and leave you without enough cash for the future.
2. Keep earning
A study for the National Bureau of Economic Research found that delaying the start of retirement from age 62 to age 66 could raise someone’s annual, sustainable standard of living by 33%. Even if you can’t continue working full time, income from a part-time job or side business could help you withdraw less from your savings.
See the full list at money.com.