Traditionally, people have thought about retiring when they approached their 60s. However these days, we’re living longer. In fact, chances are decent that we’ll live to our 90s. That means if we retire in our 60s, we might need enough money to support ourselves for roughly 30 years!
Perhaps it’s time to shift the idea of retiring in our 60s, to retiring in our 70s. It’s not the most pleasant thought, but it does make some sense. So what can you do to prepare?
First, consider waiting before you start drawing from your Social Security retirement benefit. Although you can start taking your benefit as early as age 62, your annual benefit may be 76% higher if you can delay until you’re 70. This is a significant amount!
Second, strategize to work as long as you can. This might mean taking online courses to keep up your skills, or it can mean thinking about part-time jobs as you get older. The key is to plan things out now instead of waiting.
Finally, take advantage of the time you have to save while you can. Make sure you’re taking advantage of your 401k plan if your employer offers one. If not, consider opening an IRA on your own. Another idea is to consider a health savings account - these allow you to specifically save for medical expenses in retirement.
At the end of the day, there are options and things you can do. Living longer is a blessing – just make sure you’re prepared to truly enjoy your retirement.
The information on this page is provided for educational purposes only and is not tax, legal, financial planning or investment advice. Neither the information nor any opinion expressed in this section constitutes an offer to buy or sell any securities or advisory products. The information provided is general and is not information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. You should not regard this information as a substitute for the exercise of your own judgment. Investing involves risk.