Retirement Tips From Real Retirees
Nationwide and consumer research company Yankelovich recently asked current retirees for their top 10 tips on preparing for retirement.
Here’s what they said:
Watch spending and investments
Money needed 5-10 years into retirement is most vulnerable, so avoid overspending. If that money is lost, it is harder to recover over time. Look for investments with predictable sources of income, but know that the more predictable the income, the lower the return.
Plan for prices to go up
Inflation and rising prices can eat away at the buying power of retirement funds. When planning for retirement, assume prices and inflation will go up – and plan for it.
Talk openly with significant other
You and your significant other need to be open and honest in talking about how much you think you should, and will, spend in retirement. Discussing all financial matters in retirement is critical.
Stay active – work out
Keeping physically fit, as you get older can be a hedge to the impact of health care costs that are increasing every year.
Create and stick to budget
Create a budget of how much you can safely spend in retirement, and gather tools and insight for staying on track.
Go to a pro for advice
You go to the doctor to help ensure you’re healthy. So meet regularly with your investment professional to plan for retirement.
Pinch pennies when traveling
Take the big trips when you’re younger; it’s cheaper and easier when you’re mobile. When you do travel, don’t go overboard on expensive vacations.
Pay off your mortgage
Your home can be a significant financial contribution in retirement. Paying off your mortgage eliminates a large monthly expense. Making extra payments or going on a bi-monthly payment schedule helps, too.
Stay on the job longer
Don’t risk not having enough money to maintain your living standards in retirement. Working even a couple of years longer than you had planned gives you extra time to beef up retirement funds.
Anticipate the unexpected
Budget for unexpected expenses, as well as such costs as property taxes and household maintenance costs that may go up dramatically during retirement.
Take the next step
To find out more about saving for retirement, call us at 1-800-626-3112.
Keep in mind that all investing involves market risk, including the possible loss of principal. Neither Nationwide nor any of its representatives give legal or tax advice.