Monday, September 7, 2009

7 Ways to Stretch Your Retirement Income

Most people probably don't expect to outlast their financial assets in retirement. But between the shortage of traditional pensions, paltry savings levels and ever-expanding life spans, many Americans could see their money dry up before retirement ends.
Nearly three out of five middle-class retirees will likely run out of money if they maintain their preretirement lifestyles and don't reduce spending by at least 24 percent, according to a 2008 study by Ernst & Young.

Curbing spending will undoubtedly help your money last longer, but it's not the only factor in the equation.
You can also stretch your retirement income by proactively managing your investment accounts and savings, which means understanding how they produce income over time and what risks they carry.

Be realistic about whether you can afford the lifestyle you want in retirement. And stay healthy. Out-of-pocket medical expenses can eat away at your assets or income significantly as you get older.

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