With life expectancies on the rise, a common challenge is outliving one’s savings. Utilize this retirement calculator to assess the potential depletion of your retirement savings account based on a set monthly income goal. It’s essential to consider additional income sources like company pensions or fixed incomes, such as Social Security, which can complement your retirement savings.
As you embark on retirement, the goal is to relish the fruits of your labor by wisely managing your hard-earned savings. A key factor in extending your downtime is prudent withdrawal management.
Financial experts advise withdrawing no more than 4% of your total nest egg annually to enhance the likelihood of sustaining your funds throughout retirement.
Utilizing this calculator can assist in determining the longevity of your retirement savings with regular withdrawals.
In cases where your nest egg falls short for the desired withdrawals, several strategies can stretch your accumulated assets:
- Explore Part-Time Employment: Consider taking on a full- or part-time job during retirement to supplement your income.
- Unlock Home Equity: If aged 62 or older, converting home equity into tax-free retirement income through a reverse mortgage is an option. However, thorough research is essential to understand associated risks.
- Relocate to a Cost-Efficient Area: Moving to a less expensive area can alleviate financial strain and contribute to prolonged financial stability.
🌐 Sources
- Forbes – How Can I Make My Retirement Savings Last?
- Investopedia – 6 Late-Stage Retirement Catch-Up Tactics
- Investopedia – 8 Essential Tips for Retirement Saving
- Merrill Edge – 10 Tips to Help You Boost Your Retirement Savings
- CNBC – 4 ways to spend your retirement savings — and make sure it lasts
- AARP – 4 Strategies for Making Your Money Last