Your retirement is probably going to look a lot different from your grandfather’s. We’re living longer and staying active longer too. There are new expenses to plan for and new time horizons to consider. Here are the new rules you should include in your retirement planning.
Plan for a Longer Retirement
Even though many Americans are working longer, with many working into their 70s, lifespans in retirement have grown. Previous generations planned for a 10-20-year retirement, if they planned to retire at all. However, the average lifespan is now hovering around 85, which means you need to be planning for at least 20 years of retired life. If you are active and have a strong social life, consider planning for 30 years. Fixed deferred annuities are a great addition to your investment portfolio to help you plan for a longer retirement.
Expect To Work Longer
If you haven’t been as diligent about saving for retirement, you should think about working past the retirement age of 65. A few more years of work can help to prevent yourself from running out of money in retirement. You don’t have to work full-time. Working part-time for just 5 more years can significantly improve your retirement finances. Plus, working helps to keep your brain young and engaged, so you’ll head into retirement mentally and physically fit.
Use Technology To Help
Thanks to the internet, you have a ton of retirement resources at your fingertips. Use online financial planning tools such as retirement calculators and social security calculators to get an accurate assessment of your retirement readiness without spending money on a financial advisor. You can also improve your investing returns with robo-advisors for a fraction of the cost of a typical broker.
Planning for retirement should be an exciting part of your life. Consider these new rules of retirement to rock your retired life.