Three Strategies For a Long Retirement Life
NEW YORK (5/21/13)--Thanks to healthy lifestyle and medical changes, your chances of living to age 90 and having a better quality of life in retirement are increasing every year. While your retirement life is likely to last longer, it prompts a crucial question: Will you have enough money to cover your changing needs as long as you live (MSN Money May 13)?
Here are three strategies to help you enjoy a long, fiscally healthy retirement.
Change your spending behaviors today to make sure the dollars will be there for you tomorrow. Reduce or eliminate high-interest debt such as credit-card debt. Look for satisfying, affordable vacations nearby. Research ways to reduce your housing costs.
Plan for a high-inflation future--just in case. Inflation can devastate your fixed income over the course of your retirement years, and even more so as you live longer. Be ready for at least 3% or 4% inflation. Create a few contingency plans for even higher inflation. Consider diversifying your investment portfolio to include yield-sensitive holdings such as Treasury Inflation Protected Securities (TIPS) that will pay off later.
If you're a woman, you face a two-pronged risk: If you're single, you'll probably live longer than a man your age, and on less money. If you're married, you can't count on two Social Security payments for your full lifespan; plan for several years of widowhood.
Create more income. Consider part-time work or dive in and start your own small business. Added benefit: Research shows that staying engaged prolongs life.
For more information, read "Four Key Steps to 'No Regrets' Retirement" in the Home & Family Finance Resource Center.