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Making Retirement Savings Last



Drawing retirement income without draining savings can be a challenge, and the continued situation of the coronavirus pandemic may especially impact retirees living on a fixed income.


Many of us approaching retirement can improve our chances of success if we create an individualized financial strategy to maintain an adequate monthly income stream throughout retirement.


For some, delaying retirement past age 65 to maximize Social Security benefits is an option, and others may downsize or relocate to a more affordable situation.


Minimizing or delaying withdrawals from retirement accounts during a crisis allows accounts time to recover.


A smartly conceived withdrawal sequence may help retirement savings to last several years longer because sticking to a withdrawal plan prevents over-spending.


Withdrawal sequences such as the 4% rule, the portfolio percentage method, or the spending floor approach allow retirees to enjoy additional monthly income above and beyond Social Security payments, knowing that the likelihood that they will overspend is low.


The low FED interest rates are likely to sustain lower interest rates on savings accounts, but they should still contain adequate emergency cash.

Making sure you have enough monthly cash flow through Social Security, other forms of income like annuities, or your pension can help maintain health and life goals.


Some priorities may have changed during this crisis as staying at home allows you to re-assess budgets for meals, travel, and entertainment moving forward.


Your approach to withdrawing and preserving your retirement savings can give you more control over your financial life during the golden years. Wishing you and your loved ones continued good health. Please feel free to call or reply with any questions you might have. All The Best!