Keep reading to see three realistic tips that can help you delay social security.
1. Work longer
You can consider working longer than you planned. Even if you are set on early retirement, working just enough to cover what Social Security would pay you if you took it early may be all that you need. Especially if you’ve reduced your expenses considerably, working part-time may be plenty, allowing you to semi-retire. You can use the rest of your time pursuing goals like hobbies, spending time with family, and traveling.
2. Save more, and earlier
Saving enough for retirement can already be challenging. But the more time you have, the more that stock market appreciation can help — and you can potentially reach your goals with lower contributions. Studies have shown that keeping your withdrawal rates at 4% a year or under could be the trick to maintain your assets in retirement; taking out the equivalent of $1,500 a month would equal an annual withdrawal of $18,000. Using a 4% withdrawal rate, you would need a balance of $450,000.
Saving this amount of money with 5 to 10 years until you need it is very hard, but if you have 20 to 30 years, you can accomplish this goal by investing significantly smaller amounts annually. If you can save $3,750 each year and earn 8% on average every year, you can grow your accounts to $450,000 in 30 years. If you have less time, you can do it with either a higher contribution amount or a higher rate of return. For example, you would need to save about $9,000 annually to grow your accounts by this amount in 20 years at an 8% rate of return; but if your rate of return increases to 9%, the amount you needed to save each year would decrease to $8,000.
3. A little of both, with cost-cutting
What you might find is that the best approach is a combination of saving more and working longer or in a part-time job. Adding in efforts to cut your retirement expenses will also help.
Keep reading at Fox Business for more.