Approaching retirement age can be met with many different feelings. On one hand, you realize that now you're ready for the senior discount at some of your favorite restaurants and shops, but on the other hand it means you're entering into those years where your health may deteriorate and your finances may not stretch as far. In order to enjoy them to the fullest you need to be prepared with a practical plan so that your retirement dollars will not just put money in your pocket but will also help you to live a comfortable life. There are a few things you can do to ensure to make sure that you are getting the most out of your retirement money.
Your Budget
Many financial advisers recommend that seniors do not go overboard when it comes to their retirement money. Rather than getting excited about getting access to your hard earned nest egg you need to establish a budget and stick to it. Your retirement funds are not unlimited and one day they may run out. Careless spending could bring that day much sooner than you'd like. Advisers suggest that you plan to spend no more than 5% of your retirement savings each year. The remaining money will continue to earn interest to support you later on.
Get a Job
You might be wondering why retire if you need to get a job, but reality dictates that the more money you have coming in the less money will come out of your retirement fund. It may not be necessary for you to take on a full-time job but you can find a part-time position in a field that you like or enjoy and supplement your savings. This way you'll not only be getting the most out of your retirement money but you'll be putting off using it for longer.
Use the Equity in Your Home
By converting your home equity into tax-free retirement income you can defer using your savings for even longer. Getting a reverse mortgage could actually provide you with a year or more of additional income without ever having to touch your savings.
Downsize
Cutting your expenses by moving to a smaller home or a less expensive neighborhood can stretch your retirement income by as much as 15% or more. Chances are you don't need to maintain that big house any more as you won't have the time or the energy to maintain it. By simplifying your life and cutting back on those things you won't need, your expenses will be drastically reduced and your dollars could go even further.
In order for you to be getting the most out of your retirement money you need to be able to plan well now. There is no such thing as expecting the government to pick up the tab for those who didn't plan nor can you expect your children to come through. The present economy has put a negative strain on everyone and being able to survive at any age means that you will have to depend on your skill and financial savvy to ensure that your retirement years will be the best they can possibly be.