If you want to close the chapter on working, here are five ways to ensure you have enough saved up to carry you through retirement.
Meet with a financial advisor.
Meet with a financial planner in NJ to assess your financial picture. While most baby boomers aren’t millionaires, they typically have a decent amount of money saved up for retirement. As long as you’ve been contributing to your savings accounts, you may very well have enough to cover basic expenses.
However, if you don't have enough, use this time to boost your retirement savings. Your financial planner can help you make decisions when it comes to 401(k) contributions, IRAs, automated savings and more.
Consider ways to reduce your living expenses.
Your living expenses should decrease as you retire. With a lower income, your tax bill will be lower, too. You also don’t have to pay into Social Security and you may qualify for senior discounts on your real estate taxes, phone bill, utilities, etc.
Not to mention, there are less expenses when you no longer work. You won’t be commuting, pitching in for company lunches or buying new work clothes. Hopefully, you’re no longer financially supporting your children, which also means you can downsize to a smaller and more affordable home.
Postpone Social Security for as long as possible.
Delay taking Social Security benefits for as long as you can. Retirees can gain up to 8 percent a year in additional benefits just by waiting to claim their benefits. If you’re healthy and financially stable, we recommend waiting until you are at full retirement age (66 years and 2 months). This way, you get 100 percent of your benefits.
Boost your income right now.
If you’re learning that you’re going to need more in retirement than what you have saved, consider boosting your income right now. It’s easier to do this when you’re young and healthy, even if it means working harder at the present moment.
Some of the ways you can boost your income are by:
- Tracking your spending habits
- Getting on a budget
- Downsizing to a smaller home
- Trimming your living expenses
- Working extra hours or taking on freelance work
- Consolidating debt
Consider making money off your favorite hobby.
If you don’t want to work but you know you’re going to need extra income, consider earning money off something you love to do. Some ideas include freelance writing, photography, pet sitting/dog walking, delivering groceries/fast food and driving for Uber or Lyft. If you enjoy doing these things, you can earn extra income without feeling like you’re working.
Many people hope they don’t have to work in retirement - and we can’t blame them. This is YOUR time to do the things you want. Be sure to speak with a retirement planner in New Jersey to make sure you’re on track with your goals. This way, there will be no surprises when you least expect them!