Maximizing Retirement Income: Expert Tips for Stretching Limited Savings
Middle-class Americans face a daunting financial challenge when it comes to stretching limited savings across decades of retirement. However, strategic planning in critical areas like Social Security, healthcare, taxation, and more can profoundly impact income sustainability. Leading financial experts have shared advice on how to maximize dollars during your golden years.
Katherine Tierney, a senior retirement strategist at Edward Jones, emphasizes the importance of working longer to pad savings. Nearly 60% of retirees regret not working longer to accumulate more savings cushion, with many saying they should have worked at least an extra decade. Part-time work or phased retirement transitions can help seniors stay engaged, feel purposeful, and provide for a longer and more financially secure retirement.
Dominic James Murray, CEO of Cameron James, highlights the significance of optimizing Social Security claim strategy. Delaying Social Security benefits can lead to a significant increase in monthly income, especially for those in good health. Murray advises clients to optimize their claim ages based on their individual health outlook and longevity estimates to maximize total lifetime payments.
Murray also suggests incorporating income annuities as an additional lifetime income source for retirees. With rising interest rates offering more attractive payouts, consulting advisors about adding annuities to supplement pensions and Social Security payments can prove beneficial in creating layered income streams to mitigate the risk of funds running low.
Additionally, Murray recommends prioritizing Roth savings, accelerating savings from a younger age, maintaining a cash reserve, adopting tax-efficient withdrawal strategies, reviewing budgets, downsizing, seeking professional financial planning, and delaying healthcare costs as feasible.
In conclusion, strategic planning and proactive financial decisions can help middle-class Americans navigate the challenges of retirement and maximize their income during their golden years. Consulting with financial experts and implementing personalized strategies can make a significant difference in ensuring a financially secure and fulfilling retirement.