Wouldn’t we all agree that one of the biggest challenges of retirement is making sure your money will last you the rest of your life. We can only estimate how many years we live, but we can make sure we have enough money coming in. Here are some ways to make sure you have a lifetime income you cannot outlive.
Social Security – these payments will continue for the rest of your life and will adjust for inflation each year.
Pension – if you are fortunate enough to get a traditional pension, you will generally have a guaranteed source of retirement income or a lump sum option that can be converted into a lifetime income stream.
Annuity – Income annuities give you the option to invest a large portion of your retirement savings to an insurance company in exchange for guaranteed monthly payments that you cannot outlive.
Pay off your house – by eliminating your mortgage payment, this allows you to free up one of your biggest monthly expenses. By doing this, you increase the probability of going into retirement debt-free and will have more flexibility with your monthly income.
For more information on retirement income planning, go to retirementthinktank.com