senior couple eating and enjoying themselves at their retirement home

How to Make Your Money Last in Retirement

Is retirement on the horizon for you or a loved one? If so, you might be getting excited thinking about your carefree future and planning how you will spend your well-deserved free time. But, how do you know you’re ready to retire financially? And how long will your money last in retirement? Not sure? Then it’s important to start taking steps to assess your current financial situation and plan for the retirement lifestyle you deserve. Wondering how should I invest my money after retirement? Or what is the “4 rule” for retirement? Our experts at Tutera Senior Living are here to help you by providing our top 8 tips for living your best life in retirement.

Use a Retirement Calculator or Savings Guides

Have you been saving for years, but you’re not sure how far your money will go in retirement? Wondering, “How long will $800k last in retirement?” One of the first things you can do is to check out a retirement calculator, like the one provided by AARP. Using a retirement calculator is a simple way to evaluate your current financial situation and, taking into account what you want your retirement lifestyle to look like, to plan for how you need to save or stay on track in terms of your savings.

You can also look into getting some tips from savings guides like How to Make Your Money Last: The Indispensable Retirement Guide, written by Jane Bryant Quinn. You can purchase a physical copy of the book or, if you’re looking for a more efficient (or less expensive) download of How to Make Your Money, PDF copies or e-copies may be available online for free in some areas through your local library.

Frugal Retirement Tips

Looking for a quick and easy list of tips about saving for retirement? Here are our top 8 suggestions:

  1. Start looking for ways to lower your fixed or “must-have” expenses. Don’t use your car very often due to convenient public transportation? Sell it and save the money you’re spending on car payments and insurance. Own your own home? Downsize to a smaller home to save on mortgage payments, insurance or utilities. Or, if your home is paid off (or close to it!), don’t forget that it can actually be considered a large asset to your retirement plan – it’s like a safety net, as it will likely only increase in value by the time you retire, allowing you to sell it and put that money toward your retirement lifestyle.
  2. Don’t retire too soon! Yes, it might be tempting to kick the nine-to-five to the curb as quickly as you can after turning 62, but even postponing the start of your retirement to age 66 can help increase your annual standard of living by up to 33%. Consider working part-time for a few more years, instead.
  3. Delay taking Social Security benefits as long as possible to maximize your payments.
  4. Find a good tax consultant to help with the complicated tax situations that can come with retirement, like determining which retirement account to pull from, how to plan for health care expenses and Medicare premiums, etc.
  5. Follow the 4% rule, which advises you to take no more than 4% of your savings during your first year of retirement. You can also attempt to limit your withdrawals from your retirement savings to income only so that you don’t affect your principal, though this is not always feasible for every individual.
  6. Make smart investments and spending choices. Wondering what is the best investment for a retired person? Look into guaranteed income through immediate annuities, as well as investment options like tax-free bonds or mutual funds. Be mindful of risk when making investments at an older age, though; while it can be good to be more aggressive at a younger age, you should try to take less risk in your investments during retirement.
  7. Protect your health. Avoid expensive medical costs by taking care of your annual preventative health checks and lowering your risk of long-term or chronic disease by making smart choices, like eating a healthy diet and continuing to exercise.
  8. Plan for long-term care. Although you probably hope you’ll never have to use it, it’s good to plan for long-term care, whether that’s in an assisted living or memory care community or in long-term skilled nursing care. Communities like those established by Tutera Senior Living & Health Care can help you find the best options for your budget and care needs, but it is smart to plan in advance for the costs associated with living in such communities.

Retire in Style with Tutera

Looking to establish a carefree lifestyle for your retirement? Look no further than Tutera in your search for a senior living community or health care center designed to meet your individual needs. Tutera Senior Living is a respected, multistate system of communities delivering healthy living choices and clinical services to thousands of seniors and their families. We offer numerous communities with options for independent living, assisted living, memory care, rehabilitation & extended stay, respite programs and home health care.

At Tutera communities, we get to know our residents individually. Through our YOUNITE survey, we learn as much information as we can about each resident so that we are able to personalize their care and ensure their needs are met in a style that suits them. It’s a philosophy of care we’ve cultivated for years.

Plan for your retirement today. Contact us to learn more about what Tutera can offer you or your loved ones.