Once the average citizen is able to retire, they typically have quite a nest egg squared away to use.  The same approach to money management should be taken as was utilized before retirement.  With careful planning, saving, and money management, you’ll be able to make your retirement years more relaxing.  By creating a financial game plan, you’ll be able to manage your money as well as any fears that your money will run out.  This is the time to determine where your money will be coming from, whether it’s from investments, pension plans, Social Security, or savings.  Retirement planning is about more than investing and saving your money.  It’s also about enjoying your life after choosing to retire from your job or career.  You should have a plan on how your time will be spent and where you will live.  Most retirement plans go well beyond finances and should include how you will take care of your health, family, and so on.

Sometimes people think so much about how to save for their retirement that they forget to consider how they will manage their money once they get there.  There are several things to think about and making your money last in retirement requires some thought and planning.  This is the time to plan by determining how much money you will need in retirement.  This also means making sure that your money lasts as long as you’re alive. 

Financial experts say that individuals can take out somewhere between three and six percent of their assets each year in retirement and not outlast their money.  Most experts caution that if you withdraw more than five percent of your assets, your chances of running out of money during retirement increase greatly.  It makes sense to take less investment risks once retirement age is reached, but some people tend to go too far.  More and more people live longer and by having more investments in stocks along with more stable bonds and cash your money will last longer. 

This is also the time to think about the order in which money is withdrawn from your different accounts.  A good tip is to start taking money from your regular taxable accounts first and allow your tax deferred accounts to grow as long as possible.  If possible, do not access your Roth IRA until it’s absolutely necessary.  It’s best to confer with a financial professional to determine if this is an option in your particular situation.  Social Security provides a strong base for retirement security.

However, for most people, the benefits from Social Security will replace only about forty percent of your paycheck.  Most people will require other sources of retirement income in this instance.  It’s important to decide when to begin receiving your Social Security benefits.  A reduced benefit may be received beginning at age 62, but by waiting until your full retirement age you’ll be able to reap the full benefits.  The longer an individual waits for this benefit, the larger it will be. 

Considerably more elderly adults are choosing to continue working in retirement.  Per AARP research, about 70% of mid-life and older workers choose to continue working in some way after retirement.  Many continue working because they like their work and enjoy being productive, while all too many others find the main reason to continue working due to financial need.  Lifestyle choices also affect your financial security in retirement.  By deciding whether to stay in your present home for as long as possible or moving to a smaller home, it’s wise to consider the cost of living, taxes, climate, whether there will be ample family and friend support, or any work opportunities.  To help cut costs during retirement, individuals should try to distinguish between items that are luxuries and those that are a necessity.  All credit cards should be kept in a safe place in the home to help curb impulse spending. 

With the correct planning, most items you wish to purchase may be found at a more reasonable price.  This is the time to be frugal by thoroughly investigating each purchase you make to help get the best value for your money.  Most people look forward to spending their “golden years” of retirement relaxing and doing things they didn’t have time to do during their working years.  A financially secure retirement requires intense thought and careful planning to truly enjoy.   

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3. Money Matters: Tips from a Pro About Taxes After Retirement
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5. How to Reach Your Financial Retirement Goals

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