You’ve been saving for retirement since you started your first job, and now that you’re getting closer to retirement age, it’s time to start thinking about how you’ll make your money last. Many worry that they will outlive their savings, but with careful planning and budgeting, you can make your money last through retirement. With a few smart moves, you can ensure that your nest egg lasts as long as needed.

1. Review your expenses and create a budget.

Now that you’re getting closer to retirement, it’s more important than ever to be aware of your spending patterns. Take a close look at your monthly expenses and see where you can cut back. Do you really need that cable package with 200+ channels? Are there any subscriptions or memberships that you can do without? Once you have a good idea of your necessary expenses, you can create a budget that will help you stay on track.

Some people also find it helpful to track their spending for a month or two before they create a budget. This can give you a better idea of where your money goes and where you can make changes. Look for ways to save on both your fixed and variable expenses.

piggy bank conceptualizing saving money

2. Invest in income-generating assets.

As you get closer to retirement, you’ll want to shift your investments away from growth stocks and towards income-generating assets such as bonds and dividend-paying stocks. These kinds of investments can give you a steady stream of income that can help supplement your Social Security benefits or pension payments.

It would be best if you always were careful when investing, but it’s especially important to be cautious as you approach retirement. This is not the time to take risks with your investments; instead, focus on stability and income. You can also be more secure if you work with a professional asset wealth manager. They can help you make smart investment choices and plan for your retirement. Find one who is a fiduciary, meaning they are legally required to act in your best interest.

3. Consider downsizing your home.

If you’re carrying a mortgage into retirement, now may be the time to consider downsizing to a smaller home or condo. Not only will this save you money on monthly payments and upkeep, but it will also allow you to pocket some extra cash that you can use to beef up your savings account. You can also use this money to travel or spoil your grandchildren.

Of course, you should only do this if it makes financial sense to you. Many people find that they can afford to keep their current home and still have plenty of money left over for other expenses. It’s essential to do your research and figure out what makes the most sense for your situation. If you’re not sure, talk to a financial advisor.

4. Make the most of government benefits.

You’ve been paying into Social Security for years, so make sure you understand what benefits you’re entitled to and when you can start receiving them. You may also be eligible for other government benefits such as Medicare or Medicaid. Research and find out what programs could help lower your costs in retirement. Some benefits, such as Social Security, are based on your income and work history, so starting planning early is essential.

But government benefits are just one part of the equation; you also need to have your own savings. Social Security was never meant to be a person’s sole source of income in retirement, so don’t rely on it as such. Plan to have your own savings to supplement any benefits you may receive.

5. Delay taking your pension

If you have the option, consider delaying your pension payments until you reach a later age. By doing this, you’ll receive higher monthly payments. For example, if you’re eligible for a $1,000 monthly pension at age 65, you may receive $1,300 per month if you wait until you’re 70. This extra income can help stretch your savings further.

Not all pensions offer this option, so check with your provider to see if it’s available to you. Talk to a financial advisor if you’re unsure when you should start taking your pension. They can help you figure out the best way to maximize your benefits. Some people may find that taking their pension early and investing the money makes more sense, while others may do better by waiting. It all depends on your situation.

With careful planning, you can ensure that your savings last throughout retirement. By reviewing your expenses, investing in income-generating assets, downsizing your home if necessary, and taking advantage of government benefits, you can stretch your nest egg further and enjoy a comfortable retirement.

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