Key ways to stretch your retirement income

1. Make catch-up contributions

401(k) and IRA savings accounts are the foundation of many retirement plans. You can make annual contributions of up to $19,500 to a 401(k) and $6,000 to your IRA – unless you’re aged 50 or older. Then, you’re eligible to make catch-up contributions and invest an additional $6,500 into your 401(k) and an extra $1,000 into your IRA each year.¹ This offers an excellent opportunity to boost your nest egg.

2. Wait to claim social security

Another way to stretch your retirement income: wait to begin collecting your Social Security benefits. If you were born any time after 1960, your full retirement age is 67. You may start collecting your benefits before that; however, the amount you receive will be 30% lower than if you wait.² For each year you postpone (from ages 67-70), you’ll receive an additional 8% in your monthly benefit. If you’re open to remaining in the workforce, it may be worth holding off collecting in the short term to enjoy larger payouts in the long run.³

3. Invest with inflation in mind

When managing your retirement funds, it’s important to account for inflation. Fortunately, you can buffer yourself against the forces of inflation when picking your investments. Unlike bonds and Certificate of Deposits (CDs), stocks often have a rate of return that’s higher than inflation.⁴ But they can also be a riskier financial move. Savvy investors understand that they may want to balance their stock options with more stable fixed-income instruments. This can help protect you against market volatility while also allowing you to outpace inflation.⁵

4. Consider downsizing

Many retirees also save money by downsizing. With children out of the house, you likely won’t need as much space. And smaller homes are simply more cost effective; they typically have lower utility bills, property tax and mortgages (or rent). An added bonus: They’re much easier to maintain. That means you can spend more time relaxing and less time cleaning.⁶

5. Stay healthy

While it sounds simple, one of the best ways to make the most of your retirement money is to maintain your physical health. Vitality, our innovative life insurance product offering, recognizes this sentiment and rewards customers for the everyday healthy choices they make. Things like going for a walk, eating more fruits and vegetables, meditating and even getting a good night’s sleep.

Attending regular physicals is also critical for preventative care, because early intervention is usually more affordable than treating more advanced illness. Beyond saving you money, staying healthy also means you’ll be able to enjoy your twilight years more fully.⁷