It’s National Save for Retirement Week 2012! A week dedicated to building knowledge and taking action toward securing your retirement. Each day this week we are going to look at a different contributing factor to retirement and help you increase your understanding of it so that you can take action and be prepared. Today we are looking at managing money in retirement.
When it comes to preparing for retirement, the focus is typically on saving and increasing your assets until you are ready to retire. But building that nest egg is only part of the picture. Once you retire, you need to think about how you will spend and manage that money so that it lasts for the rest of your lifetime. This can be difficult, so it is worth putting in some time to learn about your options and think about what your strategy might be.
Listen to our five-minute podcast, “What Income Will You Rely on in Retirement” to get a better understanding of the typical sources of retirement income, and what that income needs to support in your later years.
Speaking of retirement income, as we talked about in our first blog of this series, Social Security is a vital source of income for women. Deciding when to claim Social Security is a very important decision as you near retirement age; it can significantly impact how much your monthly benefit will be for the rest of your life. Check out the Social Security Administration’s online calculators to get estimates of what your benefit might be if you claim early, at full retirement age, or wait even longer.
Another great resource is this series of eleven retirement decision briefs published by the Society of Actuaries. Each focuses on a specific retirement-related decision area and offers key considerations. A sample of topics include When Should I Retire?, Designing a Monthly Paycheck for Retirement, and When Retirement Comes Too Soon.
Annuities, which allow you to convert a lump sum of money into a lifetime income stream, might also be a good option for some people. Learn more about them in WISER’s booklet, Making Your Money Last a Lifetime: Why You Need to Know About Annuities.
Finally, widowhood is also an important issue for women since they are more likely than men to live alone at some point during their retirement years. Widowhood is usually associated with a sharp drop in income. Read through our Widow’s Checklist so that you know how to prepare for the possibility of widowhood, and check out some of our other resources on our Divorce & Widowhood webpage.
Thanks for following us this week as we celebrated National Save for Retirement Week. We hope the information we provided will encourage you to make saving for retirement a priority, not just for one week but throughout your life. And if you have learned something useful, pass it on! Let’s help each other get on track for a safe and secure retirement.