Are You Retiring Soon? What to Do about Your Finances

By on April 25, 2021

It seems like your retirement years are drawing closer and closer. As a woman, see what you should do to financially prepare, especially if you are retiring soon:

Overestimate What You Need

Financial experts often encourage women to save up more money for retirement than men. Why is that? It’s because women’s life expectancy is on average higher than men’s — this is not just a finding in the United States, but one that’s proven all over the world. 

As a woman, you will need to consider a factor like life expectancy when you’re building up your retirement savings because you’ll want them to last as long as possible. Otherwise, you risk running through them too early. 

Don’t Touch Your Retirement Savings

One of the smartest things that you can do to prepare for your retirement is to not touch your fund until you need it. If you’re not retiring just yet, don’t draw from it. It will reduce your savings and undermine your ultimate goal for financial security. The longer that you practice patience and self-control, the more you will have in the future. 

Plus, there could be financial consequences for your impatience. Look up the problems with early retirement fund withdrawal to see what might happen when you tap into your nest egg before reaching a certain age. 

Make an Emergency Fund

One way that you can protect your retirement savings is to make an emergency fund. So, if there’s an urgent problem that your budget can’t cover, like a car repair, you can dip into your emergency savings to solve it instead of chipping away at your nest egg. 

As an additional safety net, you might want a personal line of credit. You can visit a website like CreditFresh and apply for one there. What is so special about a line of credit? It’s a credit tool that you can use during emergencies, especially when you don’t have enough savings readily available. 

If you get approved for a line of credit and your account is in good standing, you can withdraw funds within your limit and have the funds deposited in your bank account. The process is simple, smooth and relatively stress-free. 

Think about Downsizing

If you’re living in a large house, you may want to consider downsizing in the near future, especially if you’re still paying down a mortgage. The payments that come with homeownership could drain your retirement savings much faster than you’d like. You’ll have to cover the mortgage, the insurance, the utility bills, the home repairs, and much more. It’s a lot of financial responsibility to cover on a limited income.

Downsizing to a smaller space with more manageable monthly payments will help you stretch your hard-earned retirement savings and give you some much-needed stress relief. Take a look at some of the other benefits of downsizing during your retirement years that you might appreciate.  

Most importantly, your house is a valuable asset. Selling it could garner a hefty profit in a short amount of time. You could use that profit to support your next housing arrangement and much more. The savings could last you through your golden years. 

You want your retirement to be safe, secure, and comfortable. With some savvy financial planning, you can make that happen. 

LivingBetter50 is a magazine for women over 50, offering an over 50 magazine free download for women with spirit!

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Are You Retiring Soon? What to Do about Your Finances