A key concern for many small-business owners is running out of money during retirement. The Society of Actuaries, the Urban Institute and the Women’s Institute for a Secure Retirement undertook a study that analyzed this issue. The study shows that making a few key decisions in time can help prevent the nightmare of running out of money when you can no longer work to earn more. For those with annuities, delaying a payout by just one year beyond the retirement age, increases annual earnings by 9 percent. A 5 year delay—it's no longer extreme to be 69 or 70 and still working—can boost payouts by 42 percent to 98 percent annually. It's also important to prepare for financial shocks and leave a cushion for them. During any given nine year period in retirement 67 percent of men and 70 percent of women will experience some type of financial shock.
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