Retiree

4 secrets to maximizing your retirement income

July 24, 2024

Retiree

4 secrets to maximizing your retirement income

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Part of planning your retirement is making sure that you don’t rely on your pension or savings. You no longer have to answer to the demands of a busy career, so now’s the perfect time to explore and foster various sources of income not just to ensure your independence and financial stability throughout your retirement, but also to build a legacy you can pass on.

Here are some strategies to help you maximize your retirement income.

Diversification is a fundamental principle in managing retirement income

Explore avenues like rental income, dividends from investments, or even part-time consultancy in your field of expertise. Diversifying income sources not only reduces risk but also provides potential growth opportunities for your retirement savings.

Also read: 5 Ways Retirees Are Earning Passive Income

Investing remains a vital strategy in maximizing your retirement savings

Don’t let your money sleep in savings. Consider a mix of stocks, bonds, and mutual funds that align with your risk tolerance and retirement timeline.

The Personal Equity and Retirement Account or PERA account is a three-in-one investment, savings, and retirement account designed to provide financial security and tax benefits for Filipino adults who save up for retirement. It’s equivalent to the 401(k) in the US. Basically, it’s an investment fund that offers several tax benefits, helping you maximize your money. You can read more about it here and here.

Real estate can also be a lucrative option, offering both rental income and appreciation value. Consult with a financial advisor to help tailor your investment portfolio to suit your goals and needs, ensuring that you maximize your retirement income while safeguarding your wealth.

Managing withdrawals from your accounts significantly impacts your financial longevity

Adopt a strategic withdrawal rate that supports your lifestyle without depleting your savings prematurely. The commonly recommended 4% rule is a starting point, but adjust this based on your spending needs, the performance of your investments, and other income sources.

Maximizing government benefits

In the Philippines, retirees are entitled to benefits from the Social Security System (SSS) or the Government Service Insurance System (GSIS), depending on their employment history. Ensure you’re receiving the maximum benefits available to you by staying informed about your entitlements and any changes in the law that might affect your benefits.

Plan for healthcare costs

Healthcare is a significant concern in retirement, with costs potentially impacting your financial security. Investing in comprehensive health insurance and considering long-term care insurance can protect your savings from unexpected medical expenses. Additionally, maintaining a healthy lifestyle can reduce healthcare costs over time.

Also read: How to Save For Your Healthcare In Retirement

Protect your wealth, enjoy personal comfort and independence, and establish a financial legacy that benefits your family for generations to come. Embrace this chapter of your life with confidence, knowing that you are well-prepared to maximize your retirement savings and income. Learn more about how you can be financially prepared for retirement: