How to Finance the 30-Year Retirement

With improvements in health care and people taking better care of themselves comes increased longevity. While this is hardly a "problem" per se, longer lives means having to plan for a longer retirement--some even spanning 30 years! Here are some tips for financing a longer-than-anticipated retirement.

Instructions

Difficulty: Moderate

1. Consider working past retirement age.
   
   More Americans are forgoing retiring at age 62 or 65 (depending on how you want to structure your retirement payouts) by either working past retirement age or taking on a part-time job to supplement their income. Not only is this a good idea from a financial point of view, but numerous studies indicate that people who stay employed into old age live longer and enjoy a more active social life.
2. Make financial projections and set a budget
   
   Set a budget for how you'll live and assess the amount of money you'll need to finance your day-to-day living as well as any extra funds for vacations, unforeseen medical costs and other ancillary items.
3. Take advantage of employer-sponsored savings options
   
   Make sure you participate to the fullest extent in a company-sponsored retirement savings program such as a 401(k). Not doing so is like throwing money out the window, and who can afford to do that?
4. Reassess your housing options before you tap any equity in your home
   
   Housing is pricey, so when you get older you may want to consider downsizing to a smaller, less expensive home (especially if your children are grown and moved out) to minimize your monthly mortgage payments (or rent, in some cases).