What Are the New Rules of Retirement? 10 Guidelines for Financial Security

3. Think Creatively About What You Have and Optimize these Resources

Most of today’s retirees have not saved adequately, but that does not mean that you can’t retire and that you don’t need a retirement plan.

Everyone has resources and you need to think about using those resources creatively.  In addition to any savings you have, you can also count on Social Security as well as possibly: the capability to work in some capacity, family and friends, a house, the ability to reduce expenses and much more…

You can make small trade-offs to achieve a secure retirement at any level.  Examples of small trade-offs that make a big difference include:

  • Delaying the start of their Social Security which could mean an additional 30 percent in monthly income.
  • Buying a lifetime annuity or long term care insurance may mean less total savings are required for retirement
  • Working longer — even just part time — could be the difference between making ends meet and not.
  • Planning to have a multi generational household could financially help everyone involved.
  • Downsizing or otherwise reducing expenses could mean that you’ll never run out of money.

4. Guarantee Your Own Lifetime Income — Reduce Risks

A big part of retirement planning today is finding ways to guarantee adequate monthly income to cover your monthly expenses – no matter how long you live.  Guaranteed lifetime income is an income stream that can never run out – no matter how long you live — ideally adjusted for inflation.

In the past, shorter lives meant (among other things) less risk to your retirement financial plan. Without careful planning, today’s longer retirement period and the increased complexity of our financial markets leave your retirement security subject to much more risk. A NEW Retirement is a plan to help maintain your quality of life in the face of: inflation, stock market fluctuations, an unforeseen medical crisis or other big event outside of your control.

Some retirees use annuities and passive income to guarantee adequate lifetime income. Others rely on careful investment schemes like bond ladders, dividend producing stocks or a bucket strategy.  Still others reduce their spending to live within very limited means.

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