Retirement is a phase of life everyone looks forward to. The ability to choose your own schedule, spend time with grandkids, and travel the world is exciting. After having worked so hard for so many years, you deserve the break! However, it is critical you remain financially secure well into your retirement. Protect yourself and your savings by watching market swings, sticking to a budget, and choose the right time for social security.
Protect Yourself from Market Swings
Prior to retirement, it is important to consider future market swings. Changing values in money, 401K, taxes, and even healthcare can significantly impact your retirement. For example, the cost of healthcare has dramatically increased over the years. As you age, your medical needs, including prescriptions to keep you healthy, will increase. A good health insurance plan and savings can help protect you from unforeseen market swings. Savings and investments are also a powerful tool in making money after your retirement.
Stick to a Budget
Establishing healthy savings is the first step to covering your living expenses. Remain financially secure by living within your means. It is wise to live frugally to ensure you do not outlive your income. You also need to have savings established for future medical and housing care. You need to understand your current spending levels before moving into a retirement home. This will help you budget and provide you with the best care possible.
Choose the Right Time for Social Security
The timing for taking out your social security benefits can make a real impact on your finances. Technically you can take it between the ages of 62-70. However, the amount of money you get is impacted by when you take it. At 62, you receive 25% less than if you wait for full retirement age. A retired vs working income will also affect your annual cost of living adjustments. If you wait until 70, you can receive 32% more at full retirement age. Of course, this depends on multiple personal factors, but the longer you wait, the more of an impact it will have on your finances.
Retirement is a well-earned achievement. It is important to ensure your hard work pays for your financial future. Remain financially secure when you retire by protecting yourself from market swings, sticking to a budget, and choosing the right time for social security.
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