Retirement is a time that many people look forward to their entire lives. After working so hard for so long, retirement finally offers the opportunity to sit back and simply enjoy life without having to worry about anything. But that’s not always the case, as money is often a concern, even after retirement.
The average retirement age in the United States is 62 years for women and 65 years for men. In that age range, the average retirement savings is about $182,000. It’s also important to note that you cannot collect full Social Security benefits until you are 67 years old (if you are born after 1960). That’s why it’s important to generate retirement income, even after you’re done working. In this article, we’ll share some tips for how to generate income in retirement.
Best Investments for Retirement Income
Continuing to earn money after your retirement helps to alleviate stress and gives you the financial flexibility to do the things you want to do. Here are some of the best retirement income strategies to ensure that you have what you need even after retirement:
Annuities
Purchasing an annuity is a great way to ensure that you have a reliable income stream during retirement. When you purchase an annuity, you pay a lump sum that is then paid out to you over a certain period of time. Often, annuities are paid through the rest of your life, meaning that you will always have a dependable source of money. Annuities are also not affected by stock market fluctuations or changing interest rates, making them a safe option.
Strategic Systematic Withdrawals
Another important tip for generating income during retirement involves strategic systematic withdrawals. This means only withdrawing the money you need instead of all of it at once. In this way, you can cover your current expenses and also keep your savings in a secure place where they continue to work for you and increase in value.
Laddered Bonds and Certificates of Deposits
Two other options for ensuring income streams in retirement are laddered bonds and laddered certificates of deposit. Bond ladders involve purchasing multiple bonds that mature at varying intervals. This strategy results in a low risk of loss, consistent returns, and protection from call risk.
A certificate of deposit (CD) ladder is similar to a bond ladder and involves purchasing multiple CDs. These CDs should have different maturity dates, meaning that each CD should mature later than the previous CD. Once a CD matures, you should then purchase a new one. This strategy is generally best for short-term income needs.
While it’s not exactly a way to generate income in retirement, a great way to save money once you’ve retired is by moving into a senior living community. Doing so can provide you with many benefits, including being a part of a community, dining options, recreational activities, any assistance you may need, and no wasted money since everything is included.
At Celebrate Senior Living, we are committed to celebrating the moments, victories, and memories that will last a lifetime for our residents and their loved ones. We are a Midwest-based foundation that serves Illinois and Indiana residents by offering Independent Living, Assisted Living, Memory Care, and Skilled Nursing living options. We also provide three delicious, healthy meals a day to ensure our residents get the nutrients they need!
If you or a loved one are interested in senior living options, schedule a tour with us today! You can also learn more by exploring our communities, which include South Holland, Niles, and Fort Wayne, or by contacting us with any other questions!
