In the last 20 years, there have been some significant ups and downs in the investment market.
From the dot com bust in the early 2000s to the more recent housing collapse, there are a lot of reasons to feel insecure about your retirement savings.
In fact, a new Scotiabank study, The Retirement Landscape – A Focus on the Baby Boomer, reports that 44% of baby boomers worry they might outlive their retirement savings.
Uncertainty about the next big market downswing and the passing of time only add to the financial strain for older adults.
That’s because, with retirement years fast approaching, our investment portfolios may not have enough time to recover. If you’re worried about your retirement savings, consider these tips to alleviate anxiety:
Go for a Retirement Check-Up
If you’re worried you don’t have enough money to retire comfortably, book an appointment with your investment advisor or financial planner.
Openly share your concerns and go over your retirement plan together. If you do need more money to retire, start to save more every month or consider working part-time after you retire. There are a number of cognitive and social benefits to working in your 60s and 70s. However, if everything’s on track, seeing your future laid out in front of you and hearing from an advisor that you’re in good shape will likely be enough to calm your nerves.
Rebalance Your Portfolio
If you’re still concerned about your savings, consider rebalancing your portfolio to reduce your risk. That could mean shifting money currently invested in stocks to bonds, or other securities that are perceived to be safer. While this approach may generate smaller returns, you’ll have more certainty. Also, if the market does have another downturn, you’ll be protected from the worst of it.
Postpone Your Retirement
If you’re worried about not having an income, consider postponing retirement for few years in order to save a bit more money. This way, you’ll feel more secure when you retire. This would also potentially add to your pension income, allow you to put a little bit more money into your retirement accounts, and shorten the number of years you’ll be living in retirement without income.
Launch a Retirement Career
If you don’t want to keep working full-time, another option is to take on a new challenge and find a retirement career or start a retirement business. Some retirees decide to stay active by consulting in their field while others decide to start small part-time businesses that are in completely different fields.
If you’re handy around the house, you could potentially do some handyman work or, if you enjoy crafting, you could start an online shop.
