Some people end up having to work well into their 70s, and as such, don't get to enjoy as long a retirement as they'd like. But if you're retiring on the early side, or if you have great health and a family history of longevity, then you may end up with a lot of years ahead of you once you exit the workforce.
There are certainly benefits to a longer retirement. But financially, being retired for all of those extra years could be a challenge. So if you're anticipating a longer retirement than the average person, here are some important moves to make.
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1. Manage your savings wisely
A big fear many retirees have is depleting their savings in their lifetime. And the more years you need your nest egg to last, the greater that worry might become.
That's why it's so important to manage your savings well and be very mindful of how and when you take withdrawals. You should also make a point to come up with a withdrawal rate that makes sense for you.
It used to be that a 4% annual withdrawal rate was a standard recommendation for the typical 401(k) or IRA. Now, many financial experts caution to withdraw from retirement plans more conservatively. And that's something you should definitely consider if you think your nest egg will need to last longer than most people's. That might mean withdrawing from your savings at a rate of 2% or 3% a year.
2. Move someplace inexpensive
Many people end up living in expensive parts of the country during their working years so they can access jobs that pay higher salaries. Once that's no longer a necessity, you may want to consider moving to an area that's more affordable on a whole.
Doing so could easily help stretch your nest egg. And it might lead to more financial stability and a better quality of life for you overall.
3. Work while you can in some capacity
You might retire at age 65 and live until age 95. Your ability to work might wane over time. And to be fair, by, say, your 80s, you've earned the right to no longer have to hold down a job.
But if you're able to work part-time earlier on in retirement, doing so could benefit you in different ways. First, it might allow you to leave more of your nest egg untapped for longer. Secondly, it might afford you the option to do things like travel when you're relatively young so you can make the most of the earlier stages of your retirement.
You might even appreciate having a job from a social standpoint. Some people find retirement isolating, so if you're a social person by nature, the opportunity to interact with others alone might benefit you on top of the paycheck you're able to collect.
Not everyone is blessed with a longer retirement. But if that's something you're anticipating, these moves could help ensure that your senior years aren't ridden with ongoing financial stress.
