You have options, and holding off for a few years increases payouts for life.
Bohemia, NY (PRWEB) May 11, 2013
On May 11, Jerry Golden, developer of Savings2Income, offers advice to single retirees in a recent Huffington Post article on increasing their retirement income.
In the Huffington Post article titled “Retirement Planning: Single Retirees Save Much Less Than Married Ones” published on May 2, retirement expert Jerry Golden gives 5 tips to help single retirees better save for retirement. Because, as the article states, “the amount of money singles in their late 60s have saved for retirement is overwhelming less than that of married couples”. Golden says there are ways to “bridge the divide” which is 10 times more for married couples.
Golden says many single people don’t reap the benefits of shared household expenses. “Single people do not split costs with anyone else,” he says. “They are the sole monetary contributors, and on one salary, it can be extremely hard to save. While saving is difficult, it’s not impossible.”
Golden offers five steps to help single retirees (good advice for married couples as well) maximize their spendable retirement income.
1. Estimate a monthly income schedule in retirement. Golden says all expenses must be accounted for. “Calculate how much money will be needed each month during retirement,“, he says.
2. Concentrate on factors you control. Golden explains that fees, taxes, investment diversification, and purchase of guaranteed income are variables that can be controlled. “You can generate guaranteed income through a low-cost, tax-efficient fixed payout annuity,” he says. “If purchased on a staged basis early on, it can build steady cash flow for your entire life.”
3. Account for long-term care and/or medical expenses, main reasons for debt during retirement. “Putting away money for long-term care and medical expenses is important,” he says. “If you’re single, you might not have anyone who could help take care of you, so you have to account for that to make sure you don’t exhaust your life savings when you need care most.”
4. Include all retirement income sources. These sources could include Social Security, pensions, wages from part-time work, and savings like 401(k), Rollover IRAs and personal retirement savings. If you have a 401(k) plan at work, make sure you are contributing the maximum. It’s also important to make sure you keep track of all your retirement investments and know how best to convert these savings to income. “Consider when to claim Social Security,” he says. “You have options, and holding off for a few years increases payouts for life.”
5. Reject drawdown strategies to generate income. Most drawdown strategies only work for the “one-percenters,” he says. Instead, it’s better to look into other options to create guaranteed income and constantly monitor how much you spend.
An innovative retirement planning method called Savings2Income (S2I) created by Jerry Golden seeks to provide a clear path to retirement security for those saving for retirement, soon to retire, and recently retired. S2I incorporates Rollover IRA savings, personal retirement savings held outside an IRA or 401(k) plan and Social Security into an integrated solution.