How do I make sure my savings last a lifetime?

If you're concerned about outliving your savings, you'll need to create a plan to boost your savings and create a retirement income. Your plan should be built to ensure income for all the expenses you can't live without, like healthcare, food, utilities and housing.

Boost Your Overall Savings

Making a few small changes now can ensure that you have enough savings to live your dreams in retirement. First, decide what funds you will need to have saved. For assistance with this, try Royal Neighbors retirement savings tool.

Once you have your targeted annual savings contribution determined, there are many things you can do to make sure you are meeting your goals:

  • Contribute the maximum on employer – sponsored plans, especially if your employer has an employer funds matching program.
  • Review your budget. As our salaries increase, we often increase our spending allowances to match, leaving us no farther ahead in savings. Try to reduce your expenses by out one or two fewer times a month, or eliminated unnecessary purchases or taking up a new, lower cost hobby.
  • Consolidate your credit cards at a lower, or zero, interest rate. Or better yet, work to pay them off as quickly as possible. Saving your monthly credit bill payment will help you accumulate cash quick!
  • Refinance your mortgage. Interest rates are low, and borrowers with stable credit histories are able to renew mortgages to gain a lower monthly payment.
  • Contribute the maximum to a ROTH IRA. (consult your tax advisor for advice on your eligibility for contributions)
  • If you are 50 years old or older, you can contribute greater amounts each year to qualifying plans to help you “Catch up.” Contact your employers benefit counselor or your funds manager for details on your eligibility for this program.

 

Give Yourself a Paycheck

If your savings, Social Security and pension benefits will not be enough to cover your essential expenses in retirement, a fixed annuity may be the answer.

A fixed-income annuity is a simple way to turn part of your retirement savings into monthly retirement “paychecks.” It works by converting a portion of your savings into a stream of income guaranteed for as long as you or you and your spouse live. Or you can also purchase fixed income annuities that provide a paycheck for a specified period of time only.

You can create your own paycheck!

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