10 Ways to Stretch Your Retirement Savings as far as Possible

Rubber bands, Silly Putty, and bubble gum are easy to stretch. But stretching your retirement savings? That's more challenging.

When you're worried about running out of money in retirement, there isn't a single, fix-all strategy to take. It's more likely you'll make several small adjustments to create the financial breathing room you need. Here are 10 strategies to consider when you want to stretch your retirement savings as far as possible.

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Premium dividend stocks are ideal investments for retirees. The stream of passive income they provide lessens your reliance on liquidating stocks to fund your retirement withdrawals.

Stock liquidations aren't inherently bad, but they do lower your future earnings potential. They also increase your exposure to market fluctuations. If you sell when share prices are down, you lock in those losses. You also take yourself out of contention for any recovery gains that may follow.

You may be managing that market risk by holding stable securities, like Treasury debt. Premium dividend stocks can add a different layer of protection. They are more volatile than government bonds, but they often produce higher yields.

ALSO READ: 3 Top Dividend Stocks for a Better Retirement

You can claim your Social Security benefits as early as age 62, but you may not want to. The longer you wait to receive Social Security, the higher your monthly benefit will be. That increase in monthly income should allow you to pull less from your savings.

To find out how much of an increase is available to you, create an account at my Social Security. Once you log in, you'll see your estimated Social Security benefits at three claiming ages: 62, full retirement age (FRA), and 70. FRA is the age you qualify for your full benefit based on your income history. Claim before FRA and your benefit can be reduced by up to 30%. Claim after FRA and your benefit could be as much as 32% higher.

Extending your career for a year or two can dramatically improve the health of your retirement savings. Every additional year in the workforce is another year you can make retirement contributions. It's also another year you won't have to live off your savings.

If you don't love the idea of extending your full-time career, you could pick up a part-time role. Even if you stop making retirement contributions, the income you earn part-time will take pressure off your savings.

With this strategy, it's best to delay your Social Security claim until your FRA. That way, your Social Security benefit won't be affected by your working income.

Budgeting is the traditional way to stretch your retirement savings. If you don't already follow a budget, you may have room to trim 10% or 15% from your monthly living expenses. That could add years to the life span of your savings account.

Pore over your bank statements to find areas of opportunity. Food, insurance, and monthly subscriptions are usually good starting points. Explore refinancing for your mortgage or car loan. Look into your Medicare coverage, too. You might be able to find a Medicare Advantage plan that lowers your out-of-pocket expenses. And if you're spending a lot on recreation, seek out cheaper hobbies.

ALSO READ: 3 Ways You're Underestimating Your Retirement Costs

It's dangerous to reach into your retirement savings whenever your checking account runs low. Instead, establish a defined distribution strategy. That forces you to keep spending in check.

Your distribution strategy might involve regular monthly liquidations and withdrawals. Or, you might try living solely off the dividends and interest earned in your account.

There's also the more complicated "bucket" approach. This involves segmenting your wealth into buckets that are earmarked for the short, medium, and long term. The advantage here is that you can invest those buckets differently based on their timelines. Your short-term bucket would be cash, for example, while your long-term bucket could be growth stocks.

These different withdrawal strategies have their own pros and cons. But here's what it comes down to: The right distribution strategy is the one you can commit to long term.

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Credit card debt is a budget killer. Your credit card balances are probably carrying interest rates of 15% or more. And that rate is likely two to three times higher than the growth rate of your retirement savings. That math doesn't work out in your favor.

Pay off the high-rate debts, even if you must use your savings to do it. Yes, you'll lower your savings balance, which feels counterintuitive when you're trying to make your money last. But you'll also lower your living expenses, so you can decrease your retirement withdrawals going forward.

Depending on where you live today, moving may present a huge savings opportunity. According to PayScale's cost-of-living calculator, relocating from Los Angeles, California, to St. Louis, Missouri, would lower your cost of living by 34%. Move from Miami, Florida, to Louisville, Kentucky, and you'd shave 19% from your living expenses.

Of course, these numbers are estimates that may not fully apply to your situation. Do your own research and choose a new hometown carefully. Think carefully through how you'll spend your time and what you'll do for fun. It doesn't help you to save $500 monthly on living expenses if you start spending $1,000 monthly on trips to visit your grandkids.

ALSO READ: 37 States That Don't Tax Social Security Benefits

A move to a smaller home can lower your living expenses and free up a large sum of cash. The ideal scenario is to sell your home for an amount that pays off the mortgage and buys you a new home. Then, once you move, you'll have no house payment. Your insurance and utilities should be lower, too.

You could also downsize without selling the home or moving. For example, you could rearrange your things to free up space, and then rent out an empty room to a tenant. Or, you could rent your garage or basement as storage on a website like Stashbee.

Healthcare expenses are a wild card for retirees. One study estimated that the average retiree spent $4,300 monthly on out-of-pocket medical expenses. And that's not including the cost of long-term care, which can range from $1,600 to $8,800 monthly.

You can influence your longer-term healthcare costs by making healthy lifestyle choices today. You know the drill: Eat right, exercise, sleep six to nine hours nightly, say no to smoking, and drink only in moderation. Researchers from Iowa State University say these habits can lower the risk of dementia in older adults. You should see other health benefits, too. Heart disease, stroke, type 2 diabetes, hypertension, and some types of cancers are all linked to lifestyle factors.

If you are over the age of 70, you may have the option to sell unwanted life insurance in a transaction called a life settlement. A life settlement transfers your life insurance policy to an investor who then controls the death benefit and pays the premiums. In return, you get a one-time cash payment.

There are many factors that affect a policy's market value, but an average sales price is about 20% of the policy's death benefit. A portion of the proceeds are taxable, but there are no restrictions on how you use the funds. If you come away with $20,000 from a $100,000 policy, for example, you can drop the after-tax funds right into your savings account.

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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

If you're not feeling fully prepared for retirement, you can address it by increasing your income, lowering your living expenses, or selling assets to raise cash. Ideally, you can mix and match these strategies to achieve financial stability without drastically changing your lifestyle.

Also, small adjustments can make a bigger difference if you act sooner rather than later. Say you manage to lower your savings withdrawals by $200 monthly. In an account that's growing conservatively at 4% annually, that $200 in monthly savings adds up to $29,000 over 10 years.

Stretching your retirement savings is more challenging than tugging on a rubber band -- but it is doable. Get moving on these strategies today and you can look forward to a more relaxed retirement tomorrow.

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