Most of us have thought about the lifestyle we want in retirement.
Maybe your retirement dreams include playing golf every week. Or inviting the whole family on an Alaskan cruise. Or maybe just taking it slow and spending time with the grandkids.
Whatever your plans are, it’s important to know the best ways to stretch your dollars in retirement.
Start by realizing that your spending may not necessarily go down in retirement. “Most people will need 80 to 100 percent of their working income in retirement,” Mari told Robyn. “Today’s retirees are active and enjoy travel and leisure activities. Plus, they need to pay for health care costs not covered by Medicare.”
Some lucky people do manage to spend less once they retire, but the typical person should plan on spending as much in retirement as they did during their working career.
Choose appropriate investments. One of the biggest mistakes people make is forgetting that today’s retirement can last thirty or forty years, and investing accordingly. Mari explained how the current generation of retirees needs income and growth to support them over several decades with no steady paycheck. That means most retirees will need a healthy dose of stocks in their portfolio to keep it chugging along over the long haul.