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AND BEYOND
One might assume that most seniors are living a financially care-free life. But that’s not the case. With hard hits in the stock market and serious declines in home equity, people in their golden years are working longer and spending smarter.
Don’t Move So Fast
At age 62, you can tap into your retirement benefits without paying a penalty. But, if it’s possible, wait a few more years. For every year that you delay dipping into your 401(k) or IRA, you will continue to earn compound interest. In addition, if you collect Social Security before you've reached full retirement age (between 66 and 67, depending on the year you were born), you’ll receive 25 to 30 percent less than what you’re entitled. So try to wait. You can start your Social Security benefits as late as age 70. But before settling on a plan, meet with a Social Security Administration representative. They will help you determine the best payout strategy based on your age, life expectancy, marital status, employment, and tax bracket.
If Needed, Downsize
Economizing your cost of living is a sign of wisdom, not failure. Therefore, don’t try to hold on to a lifestyle that you can no longer afford. Maybe it’s best to rent or sell your five bedroom house, and move into a two bedroom condo. Moreover, a reverse-mortgage is not the best financial solution. You’ll still be responsible for property taxes and maintenance on your home. As you age, social image and nostalgia might cloud your financial judgment. However, look at this season of your life as a new and liberating chapter.
Stay in the Game
Whether they want to or need to, many people are working well into their 60s and 70s. According to the 2013 Retirement Confidence Survey by the Employee Benefit Research Institute (EBRI), 43 percent of employees plan to continue working after age 65. And it’s not a bad idea. A part-time job will provide extra income, and keep you busy. Therefore, think about substitute teaching, consulting, or pursuing another part-time opportunity. Life doesn’t have to end at retirement age. You can keep earning, growing, and thriving. 
