There's lots to worry about in the context of retirement -- surprise home repairs, health issues, and the reality of being bored. But one fear people tend to share in the context of retirement is outliving their savings. And unfortunately, it doesn't matter whether you retire with $400,000 or $4 million.
If inflation surges for many years and the market underperforms or experiences severe crashes, you could end up whittling down your savings even if you're careful. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » But as scary as that may sound, the good news is that there are steps you can take to avoid that fate. Here are a few critical moves that could lower your chances of outliving your retirement savings.
Once you turn 62, your Social Security benefits are on the table. And you can collect those benefits without a reduction once you reach full retirement age, which is 67 for anyone born in 1960 or later. However, if you're willing to delay your claim past that point, there's a huge upside.
Each year you hold off boosts your Social Security checks by 8%, up until age 70. The more money Social Security pays you each month, the less of a need you should have to tap your savings. And also, Social Security is eligible for a cost-of-living adjustment, or COLA, each year.
So if inflation ends up surging during retirement, the larger your benefits are, the more of a boost you should get once those COLAs are applied. An annuity is a contract you sign with an insurance company that's meant to guarantee you income for life in exchange for a premium you pay. If you're worried about running out of money, converting a portion of your savings to an annuity could help mitigate that fear.
Extract — continue reading at the source.
