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Retiring at age 80 isn’t common. But, it can be a practical choice for many people. Some work longer because they enjoy it. Others simply need more time to build financial security. With people living longer and the cost of living going up, more are rethinking what retirement looks like. If you’re planning to retire later in life, here are five key things to consider when building a nest egg for retirement at 80.
Ask a financial advisor about structuring your retirement for preservation and growth.
To effectively plan for retirement at 80, you must first determine how much money you will need to support your lifestyle. This includes:
A retirement savings calculator can help you refine your savings strategy by providing an estimate based on your current savings, projected growth rate and future withdrawal needs. These tools allow you to adjust variables such as retirement age, expected return on investments and anticipated expenses to determine how much you will need to retire.
Using a savings calculator can help you create a more precise financial roadmap and make informed decisions, whether you are increasing your contributions or adjusting your investment portfolio. Having a clear vision of your financial needs will help you establish a realistic savings target.
If you want to work until age 80, staying physically healthy is important. Regular exercise, eating well and seeing your doctor can help you avoid illness and stay active. Activities like walking, strength training, or swimming can also keep your body strong and make it easier to work as you get older.
Your mental health also matters. Keeping your brain active by reading, learning, or doing puzzles can help you stay sharp. Reducing stress through things like meditation, hobbies, or spending time with others can improve focus and mood.
Diversifying your investments is a key way to manage risk and support long-term financial stability, especially if you plan to retire at 80. By spreading your investments across different assets, you can reduce the impact of market volatility.
A good mix might include stocks, bonds, real estate and other assets. Stocks, for example, can help you grow your money. While bonds could offer you steady income and less risk.
As you get older, it’s important to balance how much risk you’re taking. Stocks can bring higher returns but can also lose value. So adding more stable options like bonds or dividend-paying stocks can help protect what you’ve saved and still let your money grow.
Creating a retirement budget can help you stay financially stable after you stop working. It breaks down how much money you’ll need by listing your monthly and yearly expenses. These can include housing, food, healthcare and travel. Some costs like commuting may go down, while others like healthcare or hobbies may go up.
After listing your expected expenses, evaluate your sources of income. This could include:
Planning for retirement at 80 can be tricky. But teaming up with a financial advisor could help you manage investment strategies, tax planning and long-term budgeting to make your savings last a lifetime. They typically offer personalized advice based on goals and the level of risk that clients are willing to take on.
For someone retiring at 80, a financial advisor might recommend a portfolio that maintains the value of savings and still generate some income. A proposed strategy could include:
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40% in bonds: These provide steady income with low risk.
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30% in dividend-paying stocks: Companies in stable industries offer regular income and some growth potential.
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20% in REITs: Real estate investment trusts can add diversity and earn income from property investments.
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10% in cash or short-term investments: For easy access to funds for emergencies or new opportunities.
Retiring at 80 takes thoughtful planning, but it can lead to a fulfilling and secure retirement. To keep financially stable, you can use savings, investments and perhaps part-time work to maintain a steady income. It’s also important to manage healthcare costs and take care of your physical and mental health to maintain a good quality of life.
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Working with a financial advisor can help you create a plan for the retirement lifestyle that you want. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
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SmartAsset’s Social Security calculator can help you estimate future monthly government benefits.
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