Retirement Income Solution Strategies
By the time that people are ready to retire, most have spent at least 40 to 50 years in the workplace. They become accustomed to drawing a salary and living off the money they are actively earning. Of course, most understand that they also need to set aside money for retirement income solutions.
Despite years of preparation, the shift from living on earned money to living on saved money can be quite an adjustment. Thinking about retirement income strategies ahead of time can help to ensure adequate income for the non-working years. Below are some retirement strategies that we recommend here at Fortified Retirement.
Lifetime Annuity with Inflation Protection
If you don’t feel entirely comfortable with the unpredictability of some of your retirement strategies, one way to compensate for that is to invest in a lifetime annuity that also includes inflation protection and spousal support. Financial planners sometimes refer to this option as an equity indexed annuity with a rider for lifetime income benefits. As an investor, you retain control over your money while still receiving an income guarantee from the annuity company. This is one reason why lifetime annuities remain popular for retirement income solutions.
Retire as Late as Possible to Maximize Your Social Security Benefits
Although you can officially retire at age 62, delaying it as long as possible is one of the wiser retirement strategies because your monthly social security check will be higher the longer you wait. While some people must at age 62 for health reasons, waiting even a few more years can make a significant difference in your retirement income solutions. You can use this social security calculator to experiment with a few different retirement age scenarios to see the difference for yourself.
Create a Detailed Retirement Plan Years Before You Need It
Living comfortably in retirement is too important to leave to chance. It’s essential to take an active role and devise a plan outlining your retirement income strategies that includes the following information:
- Assess the money and assets you currently have available.
- Determine how much you will need to live comfortably in retirement and how much you think you will spend.
- Consider all possible scenarios that could derail your retirement plan and think of potential solutions for them.
Be sure to revisit this plan frequently to adjust for inflation and other unexpected changes. For additional retirement solutions, please visit our free online resource center.
Retirement Income Planning: 12 Strategies for Lifetime Wealth and Peace of Mind