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Retirement: Tips to protect your retirement fund

People work hard to provide themselves with a sturdy retirement fund, and once they get to that point they want to protect it.

paved road with the word "retirement" on it leading into the sunny mountains

There are various ways to protect both yourself and your money when it’s time to retire.

It’s unfortunate that millions of individuals suffer money troubles, and if you don’t want to be one of them here is how to protect yourself.


Social Security: Get the maximum benefit worth $4,194

Three ways to protect yourself and your retirement fund

Pad your savings

While Social Security benefits are one form of income during retirement, they are only designed to make up for around 40% of your previous salary.

In order to live the way you’ve grown accustomed to, you need at least 80% of your former salary to get by.

This means saving a lump sum of money is a safe and wise thing to do.

By building up a nest egg for yourself, you’ll have that to fall back on if your Social Security isn’t what you thought it might be.

This can also help offset some of the unexpected health costs people experience in retirement.

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Social Security: 2022 monthly payment schedule

Be careful with your withdrawal rate

Many people worry that they’re going to lose their money while they still need it.

If you set a safe withdrawal rate, it can help you to avoid the stress by making your money last.

The rate is the amount you’re taking out of your investment accounts.

According to USA Today, it’s wise to stick to just 4% your first year of retirement.

Future returns are expected to be lower, meaning the 4% rule may actually cause more issues as time goes on.

In addition, people’s lives are lasting longer than they used to.

In order to avoid worrying about what the future might look like, you could change it to only taking out 3%.

If you have a savings, you could also only pull the interest out every year.


Social Security: Different types of benefits

Have comprehensive insurance

Make sure your health insurance is exactly what you need

As you grow older and enter retirement, the likelihood that you’ll end up with healthcare costs grows.

Most retirees are on Medicare, but if you retire too early for that, you can keep your coverage through your current employer using COBRA.

Not having healthcare for a period of time could be very dangerous.

If something happened, it could wipe out your retirement.

Knowing if you need supplemental Medicare on top of your traditional Medicare is necessary.

With supplemental insurance, you could then afford necessities like hearing aids.

Having beneficial and affordable insurance is going to financially protect you in the long run.

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