Many baby boomers wonder whether they will outlast their retirement savings. On one hand, who doesn't want to live longer? But on the other, who actually has enough money to live forever? Although it’s difficult to predict all of your retirement costs, here is how to determine if your retirement savings is likely to last for the rest of your life.
Calculate your retirement income. Charts, calculators, and graphs that promise to give you a specific number you need to save for retirement are far from perfect, but are certainly better than nothing. In addition to calculating the grand total you need to save for retirement, figure out the income you will receive in retirement. If you know how much you can draw on each month, it's much easier to figure out whether that is enough or not.
Get a part time gig. Most people don’t want to work more hours than they already do. But you can get by with less savings if you work part time in retirement. And working a few hours a day isn't just about earning a paycheck. You can try to find work that is actually enjoyable and fulfilling. Working also keeps your mind sharper and can help you stay healthy.
Figure out your expenses. You are less likely to be able to retire if you have an extravagant lifestyle. Some people won't even be able to retire with $12 million in the bank. But if you downsize your expenses, you can retire on much less.
Focus on friends and family. As you age, you may be able to spend less. The secret of retirement is to find fulfillment from family, friends, and pursuing a passion, not materialistic things. The further you move money down your priority list, the more comfortable you can be about your money being enough.
David Ning runs MoneyNing, a personal finance site aimed at helping others change their habits for a better financial future. He suggests that everyone to sign up for an online savings account to get more out of our hard earned money.