After a lifetime of hard work, you deserve a retirement that's meaningful, relaxing, and devoid of financial stress. But unfortunately, the latter is never guaranteed.
In fact, many savers today are worried about not having enough money to last throughout retirement. And in a recent BlackRock survey, 64% of savers said they're worried that their nest eggs won't last. If you have similar concerns, here are a few important moves to make.
1. Pump as much money as you can into a tax-advantaged savings plan
These days, it's not that easy to max out a 401(k) or even an IRA. Inflation is driving living costs up, and that's forcing more people to scale back on retirement plan contributions so they can pay their essential bills.
But if you're able to increase your savings rate even a little bit, it could go a long way over time. Furthermore, it pays to put as much money as you can into a tax-advantaged savings plan like an IRA, 401(k), or even an HSA. That way, you could potentially get a tax break on the funds you put in, and your money will also get to grow in a tax-advantaged manner.
2. Invest your savings aggressively until retirement nears
The past seven months have been extremely volatile for the stock market. You may be uneasy about the idea of going heavy on stocks in your retirement plan for fear of losing money. But while loading up on stocks does carry some risk, investing too conservatively comes with its own risk -- the risk of falling short on funds down the line.
A good bet, therefore, is to invest your savings aggressively throughout the bulk of your career, but then start shifting toward a more conservative investment mix as retirement nears. That could mean starting to unload some stocks around age 60 if your goal is to wrap up your career by age 67.
3. Work as long as possible
The more time you spend in the workforce, the more opportunity you'll have to keep earning, saving, and investing. But extending your career also serves the very important purpose of keeping your nest egg untapped for longer.
If you don't want to work full-time well into your late 60s or 70s, try shifting toward part-time work. In the wake of the pandemic, employers have gotten increasingly flexible when it comes to employee schedules. And so it pays to see what options you have that allow you to continue earning money.
You can also do the trendy thing and join the gig economy once you feel you're done with your career. That could mean getting to do something you're really passionate about that also happens to pay.
It's natural to be worried about running out of money during retirement, and clearly, it's a concern a lot of people have. But if you do your best to boost your savings rate, invest aggressively, and leave your nest egg untouched as long as possible, you'll be less likely to land in a scenario where your hard-earned money has run out on you.