Image Pixabay
Everyone should start thinking about their retirement as early as possible. If you are working a job, running a business or doing contract work, now is the time to start preparing for the future before you hit retirement. Even with careful planning, it can be tough to meet the financial needs of the short term and the long term. Today, we’ll cover some proven ways to have the retirement income you need later on in life.
Life Savings
Of course, the best way to keep yourself financially secure is though savings. Whether it is now or in the future, you have to put money towards your savings consistently. Preferably, you should be able to save an increasing amount of money as you progress towards retirement. This way, if you start getting close to 50 years old, you have the opportunity to save up enough money for the rest of your life. Moreover, you will feel confident in your ability to manage finances and save money regularly.
Invest In Retirement Accounts
Additionally, you can grow your money by investing in 401K accounts or Roth IRAs. Many employers provide incentives to put money into retirement accounts. More so, the government provides tax benefits to individuals who are investing in their future. To take advantage of investing your money over the long term, invest money into these accounts every paycheck.
Buy An Annuity
Next, annuities are another way to secure retirement income. If you do have savings, but it might not be enough to last your retirement, then you can pay a lump sum for an annuity. In turn, the annuity will give you monthly payments over the course of your life. Certainly, the payments and amount paid out would depend entirely on how long you live. However, it could be great if you end up outliving your expectations and get paid more in the long run.
Get A Reverse Mortgage
Sometimes, individuals are nearing retirement without many assets other than their home. Fortunately, you can still secure retirement income through a reverse mortgage. Using a reverse mortgage calculator like https://reverse.mortgage/calculator/, you can determine the size of the loan you would be eligible to receive at varying interest rates. If you qualify after the age of 62, the money could be used towards whatever you would like. Some people use it to take care of their mortgage payments, keep up with bills or have some additional retirement income.
Hold Out On Social Security
Furthermore, claiming social security could have a major impact on your retirement income. If you take social security at the age of 62, you could end up receiving less than 75% in the long run. On the other hand, people who wait until the age of 70 are much more likely to get more retirement income from social security. If you plan your future retirement income streams carefully, you should try to wait as long as possible to claim social security.
When planning to secure your retirement income, keep these methods in mind. Develop the habit of saving and investing. Buy an annuity or plan to leverage your nest egg in the future. Finally, you can rely on social security as a last resort, waiting for the larger pay off at 70 years old. With these retirement income streams, you can have a secure future.