[vc_row][vc_column width=”2/3″ el_class=”section section1″][vc_column_text]What’s worse than running out of money in retirement age? These are times when all you should be doing is relax and enjoy the fruits of your many years’ hard work. This has become a significant concern such that over 60% of American retirees are more concerned about saving during their working years than they are worried about dying. Instead of going through this stress, it is best if you take a step and do something about it by starting saving and increasing your income as early as now. How do you do that?
Implement catch-up contributions in your IRA OR 401(k)
- Also Read: 3 Reasons Certain Federal Employees Can Retire Years Earlier Than Their Peers Without Penalties
- Also Read: CSRS Retirement in 2024: Are You Making the Most of What This Classic Plan Has to Offer?
- Also Read: Roth IRA Basics for Beginners: What’s There to Learn?
With this, you can only imagine how much you can save in 15 years in a scenario where you are 52 and wish to retire at 67. If you increase your contributions by $1,000 each year, that will add up to $15,000 by that time. How awesome is this?
Delay your social security benefits
Do not be in a rush to file for social security since the age at which you file for them can significantly determine if they will go up or low. Delaying the filing until you are past the retirement age automatically increases them by 8% per year until you are 70. Take an example where you are to receive monthly benefits of $1600 at 67, but then you wait until you are 70 to file for the social security benefits. This will increase the benefits to $1,984 which makes it a total of $4,600 increment per year.
Focus on dividend-paying stocks
You should note that not all kinds of stock offer dividends. With some, you will get nothing after holding them. You can avoid this by filling your portfolio with dividend stocks which allows you to get quarterly payments which you can use to increase your retirement income. The best part about these stocks is that even when the stock market misbehaves, you still get to receive your payments.
Bonds
This is another thing that you need if you wish to receive a consistent payment. It does not matter if the market is underperforming, you will still receive your payment which will help you significantly during your retirement age. Bonds are the better option compared to stocks due to their low level of risks. Take advantage of this and buy as many bonds as you can, especially the municipal bonds.
Work on your housing condition
Housing happens to be the highest monthly expense, and if you are not careful enough, this expense could drain you in your later life. You do not want to spend as much on housing after retirement as you used to during your pre-retirement years. Cut on the possible costs, for example; you can get a smaller house. A small house will generally come with minimum expenses. Heating cooling and maintaining it all becomes easier and less demanding. You may also decide to relocate to a cheaper part of the country and rather than renting, get your own house instead.
With these tips, you can have a happy retirement knowing that you have enough to push you through the years.[/vc_column_text][/vc_column][vc_column width=”1/3″][vc_single_image image=”34596″ img_size=”292×285″ style=”vc_box_shadow”][/vc_column][/vc_row]
