November 6, 2014 12:21 am
1. Max out your contributions. The IRS sets higher limits for those aged 50 and older, so take advantage of it by cutting expenses and putting those savings into your retirement accounts.
2. Relocate to a less expensive area. With many soon-to-be retirees building significant equity in their homes, it may be worthwhile to sell and move to a location that accommodates a lower cost of living.
3. Become a part-timer. Supplement your savings with part-time employment. Many retirees find this to be not only a productive use of time, but also an opportunity to explore interests they could not pursue while working full-time.
4. Test your retirement lifestyle. For those who are uncertain they can live on their retirement savings, financial experts recommend spending two years before retirement living within those means.
5. Postpone retirement. If your savings fall short, consider delaying retirement altogether. When you do retire, you’ll receive higher Social Security payments than you would have if you collected earlier.
Those nearing retirement should consult a financial advisor or tax professional before making changes to their investment strategies.
Published with permission from RISMedia.