Planning for your retirement entails more than saving enough money, you also must manage your investments once you are retired. Experts suggest utilizing a financial planner for this as they can provide tips and solutions you may not know about.
They can also manage your assets utilizing the specific guidelines you set for them, freeing you from the burden and providing additional time for you to enjoy your retirement. Here are some additional tips you can employ to avoid outliving your money.
Delay Using Your Social Security Benefits
The Social Security Program makes it possible for individuals to begin receiving social security payments as early as 62, with full benefits becoming available at the age of 66 for individuals born between 1943 and 1954. Experts suggest delaying tapping into this account until the age of 70 to receive increased payouts. If you start collecting your benefits before the age of 65 you will receive 25 percent less than you would at 66. If you wait until you turn 70, you will earn approximately 33 percent more.
If you are still working, do not apply for social security unless you absolutely cannot survive without the money. This is because collecting social security while receiving a steady paycheck will result in an earning penalty. Experts remind individuals that even if you are not going to begin collecting social security right away you should still claim your Medicare benefits immediately after you turn 65. Delaying this will result in penalties rather than rewards.
Experts suggest taking advantage of more annuities, which are insurance contracts that provide steady income and are available in 401K plans. Retirees can systematically convert a portion of their savings into a low risk, immediate income annuity. You can also choose an annuity through a pension plan sponsored by their employer rather than a lump sum withdrawal. An annuity provides a guaranteed base income and helps prevent the overspending of assets.
Enhance Your Financial Literacy
Whether you are working with a financial planner or managing your retirement assets on your own, it is important to learn the vocabulary associated with the industry. This can help you avoid confusion when making important decisions regarding your future. Experts suggest utilizing interactive tools and speaking with an experienced financial consultant. Ask questions about anything you do not understand, a professional will not mind taking the time to explain the implications of every decision you are making.