Outliving your savings. Those are 3 scary words that most retirees do NOT want to hear! Even if you’ve planned carefully and have a sizable nest egg, living longer than your money is still a possibility. What can you do to alleviate these concerns? Read on for Cornerstone’s 5 steps for retirement security!
1) Buy longevity insurance
With this type of insurance, you give the insurance company a small premium at the age of 65. The insurance company invests it until you’re in your 80’s and then begins paying you in monthly increments for the rest of your life. A policy like this might typically cost around $25,000 and would pay out $3,000 per month when you turn 85.
The timing on policies like these are ideal because the payouts are coming at a time when you are likely to start acquiring some significant medical bills and if you consider the years of inflation on your nest egg, these could really diminish your resources.
Using this approach for your financial planning makes it easier to plan long term because your payout date is determined when you buy the policy. You will know exactly what you have coming in the future, as you move through your initial retirement savings.
2) Delay taking Social Security
The longer you wait to start collecting your Social Security benefits the more your monthly retirement benefit will increase.
For example, 66 is the full retirement age and if you start collecting at that age you will receive 100% of your retirement. However, if you delay until you’re 67 years old to start collecting, that benefit goes up by 8%.
The longest you can wait is until age 70 and if you do this you will get 32% more than you would have gotten at full retirement age.
3) Get a job
If you’re able to take on some part time work you can put some extra cash in your pocket and this will allow you to delay withdrawing your Social Security for as long as possible. There are lots of great companies that are happy to hire retirees!
Here’s a great way to search for companies that are looking to hire those over 65. Senior Job Bank
4) Consider Long-Term Care Insurance
It’s really impossible to know what the future holds and what types of help and medical care you will need as time goes on.
Long Term Care insurance can provide a safety net for you and your family in the event that you have to use In-Home care, or Long-Term care services in a nursing home or assisted living facility. Some of these policies even provide benefits to your care-giver when they need a break!
There are also Life Insurance policies that can have Long-Term Care riders added to them. These are great because if the benefit isn’t used, it passes tax-free to the policy’s beneficiary! That is a win-win for everyone!
5) Find a good Financial Planner
All the information shared above is a great way to get started, but to truly assess all your specific financial needs and to determine which of these things would benefit you and your family the most, what you really want is a thorough financial review, conducted by a professional who has been trained to make sure that you get the most out of your retirement! Cornerstone has dozens of agents ready to work with you whenever you need us, in the comfort of your own home and at NO COST to you EVER. Here is a great article that shows what SHOULD happen at a typical Financial Review appointment and tips for making sure your agent is really doing their job!
Whatever your plans are for your future, we all want the same thing. Security! Cornerstone would like to help you optimize your chances at a safe, happy and secure retirement. Contact us today for more information!