Have you been spending a lot of time these days dreaming about life after retirement? From enjoying time with the grandkids and heading out on that Caribbean cruise to finally starting your novel, there are so many wonderful things ahead of you.
And if you've already reached your retirement savings goal, you might also be thinking about how you could stretch your savings. Learn how you could make your strong financial foundation last long after you've entered your golden years.
1. Consider Reallocating Investments
Now could be a good time to examine your portfolio and think critically about your investments. When you're in retirement — or very close to it — a conservative investment approach could help you protect your savings. For example, you could consider bonds and certificates of deposit (CDs), which generally have less risk than stocks and mutual funds.
2. Continue Good Saving Habits
A penny saved is a penny earned — right? If you've already hit your retirement savings target, this might be your personal philosophy. And if you still have a few more working years left, it could still be helpful to put aside as much money as possible for the future.
Good saving habits could help protect you against unexpected costs in retirement. Retirement can be an incredible time in your life, but it could also come with unpredictable expenses like medical bills or major home repairs. Saving more could bulk up your financial cushion (and give you additional peace of mind).
3. Plan Your Budget
Have you put together your retirement budget? Consider making a list of your expenses, such as your mortgage or rent, utilities, groceries, health insurance and more. Drafting — and sticking to — a retirement budget could help you keep your finances in check.
It could be even more important to stick to a budget in retirement because you'll likely be on a fixed income. If you overspend at the beginning of your retirement, your money might not last. Putting together your ideal monthly budget now could help you stretch your savings.
4. Calculate Your Needs
How long will your retirement savings last — and will your savings be enough? Consider speaking with a financial representative to get a better idea of the amount you might need. A representative could help you conduct a financial needs analysis, which could help you discover where you stand financially and develop a plan to meet your financial goals.
5. Consider Part-Time Work
Have you considered working part-time in retirement? Your employer may be willing to keep you at your company on a part-time basis, as he or she would benefit from your years of experience. You could even try to find part-time work in a job you've always wanted to pursue. Working after retirement could allow you to spend less of your savings initially and save a little extra for the unexpected — just in case.
As you head toward the retirement finish line, consider your next financial steps. A plan of action and a strong financial foundation could put you in great shape for life after retirement.