In a recent post, we discussed how people who are nearing their retirement can still create a sizeable nest egg even within a 10-year time frame. Today, we are going to talk some more about how to prepare for a comfortable retirement even when you are close to retirement.

The Wall Street Journal has posted a very timely and helpful set of tips on how to improve your finances so that when the time comes for you to retire, you can live without having to worry too much about your finances. The key here is to carefully conduct financial planning and to deliberately take control of your finances during retirement.

Timing is everything

Olivia Mitchell, executive director of the Pension Research Council at the Wharton School, stresses the benefits of delaying or deferring retirement. Many financial experts share the same belief that an individual should never be in a hurry to take on retirement. When it comes to retirement, as they say, timing is everything. It is not yet time to retire simply because you dislike your job or because you have already turned 60. The best time to retire, apparently, is when you have a nest egg that will sustain you through the rest of your life.

Delaying retirement offers you an opportunity to earn income longer, thereby allowing you to save some more money intended for retirement, and greater Social Security benefits. The Social Security Administration’s website has a great tool that allows you estimate the amount of benefits you will get during retirement. The benefits tool will help you to thoroughly assess your financial situation, giving you ample amount of information to help you decide when to retire.

The risk associated with longevity

We all hope to live longer. However, there are some financial risks involved in living longer than our money. Outliving our money is not a very pleasant prospect. One great advice to help you keep enough money to support the rest of our retirement years is to set aside a portion of your savings to purchase an annuity. Doing so will guarantee you regular payments for the rest of your life.

Watch your expenses

When you are living in your retirement years, your expenses should already be kept at a minimum. When your kids have already grown and lived independently away from home, it may be time to consider moving to a smaller house where your expenses such as utilities can be lower. Also, setting a solid budget on a monthly basis will also help cushion your financial capacity during retirement. Many retirees who are too concerned about outliving their assets spend less money than they could. That is why experts would advice getting an annuity for an adequate level of income and for a more spending flexibility.

Keeping a wary eye on investments

Common stocks are fine for long-term investment growth. However, if you are already living in your retirement years, the market fluctuations may be too much for you to take. It may not be a good idea to hold on to volatile investment instruments any longer when you’re 60. Instead, move your money to a more stable financial instrument that does not fluctuate with the market, but rather provides a fixed income. Bonds and money market instruments are great examples of investment avenues for retirees.