Tim Boyle \/ Getty Images News via Getty Images <\/p>\n
The median retirement savings for Americans aged 65 to 74 is $200K.<\/p>\n
A $200K nest egg generates only $8K annually using the 4% withdrawal rule.<\/p>\n
Claiming Social Security at 62 instead of 67 reduces monthly benefits by 30%.<\/p>\n
If you\u2019re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here<\/a><\/p>\n The median retirement savings balance among Americans aged 65 to 74 was $200,000, according to an analysis by the Federal Reserve. So if you’re 61 years old with a $200,000 IRA or 401(k), you’re not necessarily in worse shape than many of your peers.<\/p>\n But $200,000 in retirement savings isn’t exactly a large sum of money. And it may not provide as much annual income as you’d expect.<\/p>\n If you use the 4% rule, a $200,000 IRA or 401(k) gives you access to $8,000 a year in retirement income, not accounting for inflation-related adjustments to your base withdrawal rate. That’s just not a lot of money. So if $200,00 is all you’re looking at by age 61, consider these moves.<\/p>\n Feeling tired and burned out on the job? Unfortunately, a workforce exit may not be feasible if you only have $200,000 in savings at age 61. But that doesn’t mean you’re stuck in your current job.<\/p>\n It’s important to do what you can to stretch a $200,000 nest egg and, ideally, add to it. But you can do that at a job that isn’t as stressful, and that you enjoy doing to at least some degree. Don’t be afraid to pivot if it keeps you in the labor force a few more years.<\/p>\n If you’re 61 years old, you’re close to being able to collect Social Security. But you probably don\u2019t want to file for benefits at 62 if you only have $200,000 in savings.<\/p>\n Claiming Social Security at 62 will reduce your monthly checks by about 30% compared to waiting until your full retirement age of 67. That’s a hit you can’t afford.<\/p>\n At the very least, aim to file for Social Security at 67. But if you can hold off beyond that point, even better. Your monthly checks get a permanent 8% boost for every year you delay claiming benefits past full retirement age, up until age 70.<\/p>\n Working as a retiree may be inevitable if you don’t get a chance to grow your savings beyond the $200,000 mark. But also recognize that that’s not such a bad thing. You might appreciate having a reason to get out of the house, and you might enjoy the social element of holding down a job.<\/p>\n You also don’t necessarily have to commit to a traditional job as a retiree. The gig economy is loaded with opportunities to earn money without having to sit at a desk or work a cash register.<\/p>\n You’re not doomed for retirement if you’re 61 with only $200,000 saved. But try to avoid tapping your nest egg for as long as possible, and try to get more money out of Social Security to compensate.<\/p>\n And also, make sure your nest egg itself continues to generate income. You’ll need to be careful with risk, but that doesn’t mean you can’t keep a portion of your savings invested in stocks with the remainder in safer assets like bonds, CDs, and money market funds. Talk to a financial advisor if you’re not sure how to manage your savings now that retirement is getting close.<\/p>\n You may think retirement is about picking the best stocks or ETFs, but you\u2019d be wrong. Even great investments can be a liability in retirement. It\u2019s a simple difference between accumulating vs distributing, and it makes all the difference.<\/p>\n The good news? After answering three quick questions many Americans are reworking their portfolios and finding they can retire earlier\u00a0than expected.<\/a> If you\u2019re thinking about retiring or know someone who is, take 5 minutes to learn more here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Tim Boyle \/ Getty Images News via Getty Images The median retirement savings for Americans aged 65 to…\n","protected":false},"author":2,"featured_media":360451,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[39],"tags":[28,147,530,1048,68678,733],"class_list":["post-360450","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-personal-finance","tag-personalfinance","tag-retirement-savings","tag-retiring","tag-social-security"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/360450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=360450"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/360450\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/360451"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=360450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=360450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=360450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} 24\/7 Wall St. <\/p>\n