by Chelsea Springli 
When you reach the retirement milestone, it’s vital to find strategies that make the most of the money you’ve saved. For many retirees, the fear of running out of money is their greatest worry. They don’t know how to stretch their Social Security benefit to pay all their bills, or they are uncertain about how often, or how much, they can dip into their individual retirement account or other retirement savings.
Check out these four easy steps to stretch your retirement income.
Consider Annuities
After retirement, holding onto what money you have becomes even more important. This means that for most people, this isn’t the time to indulge in high-risk investments. Make an appointment to go over your current portfolio and consider moving any funds wrapped up in risky investments to something safer such as fixed annuities.
A fixed annuity is an insurance product that lets you deposit a lump sum (or series of payments) with an insurance company in exchange for a guaranteed interest rate for a specified period and, in some cases, a future stream of income.
With a fixed annuity, your principal is protected and can provide a predictable income stream. And if you mix immediate and deferred annuities, you can receive payouts on portions of your money while the rest collects interest. Now that’s making your money work for you.
Next Steps to Consider Annuities
Make an appointment with a financial planner to switch some risky investments to annuities instead to shift from non-guaranteed to guaranteed income.
Reduce Spending
Good advice at any age, this suggestion takes on new importance after retirement. Look for opportunities to eliminate expenses that may no longer be necessary.
This is the time to consider downsizing your home or moving to a less-expensive neighborhood. Most retirees look into traveling with their extra time, so you won’t be home as often. Re-evaluate your in-home perks: TV channels, streaming networks, home deliveries, etc. You might also want to take a second look at life insurance payments. If providing for dependents after your death is no longer a necessity, cutting back on coverage could free up quite a bit of cash.
Next Steps to Reduce Spending
Review your spending history for the past year and see where your money is going. Put it into a budget. Identify areas where you can cut your spending to keep more of your retirement savings intact.
Trade-Up on Credit Cards
Take a look at the perks offered by your credit card companies and ditch any cards that don’t fit your needs. For instance, if you’re not a frequent flyer, that card that gives you airline miles might not be as beneficial as one that offers cash-back on everyday purchases.
It’s also important to review factors such as interest rates, annual fees, rewards programs, and other account features. Choosing a card that matches your needs can help you maximize benefits while minimizing costs.
Next Steps for Your Credit Cards
Review the terms and features of your current credit cards and compare them with options available through your credit union. If you carry a credit card balance, you may want to explore lower-rate cards or balance transfer options that could reduce interest costs. If you’re unsure which option is best for your situation, make an appointment with a credit counselor for guidance.
Be a Savvy Consumer
Now is the time to take advantage of off-peak entertainment. Hotels and campgrounds offer lower rates during off-peak times, so does your local golf course, and the movie theater down the street. Taking in matinees, traveling during off-peak seasons, and enjoying the lunch specials instead of dinner can all help stretch your retirement budget. You can also take advantage of happy hour prices and senior citizen discounts whenever available. All those things you couldn’t do because of your 9-5 job, now you can do whenever you want. You’ve earned it, so take advantage of all the perks.
Next Steps to Be a Savvy Consumer
Many activities and restaurants offer daytime and senior discounts. Don’t be afraid to plan your schedule around these discounts! Without a 9-5 to report to, you can take advantage of savings on activities you would do anyway.
Stretch Your Retirement Income
Take a serious look at your life and review any changes you can make from your working life. Sure, once you retire, you won’t need a professional wardrobe, and you might not go out for lunch as often. But then again, you might. In fact, the more time you have on your hands, the more likely you are to fill that time with activities that increase spending. By budgeting wisely and making thoughtful spending decisions, you can help your retirement savings last longer while maintaining confidence in your financial future.
