3 Strategies to Recession-Proof Your Retirement Savings
Retiring amid a potential recession could make anyone's stomach turn, but fortunately, there are ways to maintain your spending levels no matter the economic outlook. With inflation at 40-year highs, interest rates climbing fast, and stocks seeing their worst first half since the 1920s, investors are right to feel concerned. From that perspective, let's take a look at three of the most effective ways to support your nest egg in retirement and limit the possibility of ever running out of money.
Delayed Social Security credits are a really powerful tool for people who can afford to wait on filing. For every year you wait to claim Social Security, you'll receive an 8% bump in benefits. What's more, you'll also receive annual inflation adjustments (commonly referred to as cost-of-living adjustments or COLA) to help cover any loss in purchasing power. This will obviously come in handy should the current inflationary environment stick around for longer than anticipated.
Social Security, for many retirees, acts as a minimum level of guaranteed income designed to cover basic living expenses. Unlike stock returns -- which have the tendency to come and go -- Social Security sticks around for the rest of your life. The longer you wait to file, the more you'll ultimately receive, and the less you'll need to rely on your investment portfolio to meet spending needs.
Source Fool.com
