Some people must keep working well into their 70s, which cuts into their retirement time. Yet, if you plan to retire early, are in excellent condition, and come from a long line of healthy, long-lived ancestors, you may have many years of retirement ahead of you.
Positive outcomes can be expected from retirements that last longer. Nonetheless, it may be challenging to maintain one’s current standard of living while enjoying an extended retirement. To that end, here are some measures to consider if you expect to enjoy retirement for a more extended period than the norm.
Responsibly plan your finances.
Many retirees worry that they will need more time to gather their savings when planning for retirement. The longer you count on your nest egg, the more pressing this concern could grow.
Because of this, you should be very careful about how and when you remove money from your savings. Create a sensible withdrawal rate that works for you.
The traditional advice for a 401(k) or IRA withdrawal rate was 4% yearly. Many specialists in the financial sector are now advising retirees to take smaller withdrawals from their retirement accounts. Also, if you anticipate your retirement savings is needed for a more extended period than the average person’s, this is something to consider. That could imply a 2% or 3% annual withdrawal from your funds.
Do a U-turn and go someplace cheap to gain ground on your retirement savings.
Many people end up relocating to more expensive sections of the country over their working years to get employment that pays more. When that is no longer an issue, you may relocate where living costs are generally lower.
Your retirement fund may grow faster if you do this. And it could mean more secure finances and a higher standard of living for you.
Put in what little effort you can while you still can.
You could retire at 65 and live to be 95, and your productivity may decrease as time goes on. You can stop working at a certain age (say, 80).
But, there may be additional advantages to working part-time during the early stages of retirement. The first advantage is that it could help you delay spending some of your savings. Second, you can take advantage of your early retirement years by taking trips.
From a purely social perspective, you may value your employment. If you’re naturally friendly and feel lonely in retirement, working from home could have additional benefits beyond the money you save.
The average retirement age varies widely. But if you think that might be the case, taking these steps now could help alleviate any financial worries you might have in your golden years.
While you go about preparing to retire, do not forget to plan for one of the most crucial retirement expenses there is. Learn more about it here.