If you have been working hard all your life, you are probably looking forward to retirement as the time of life where you can do all that you have put on hold. But have you planned on how you are going to live your dream retirement? Have you got all your finances in place so that you can keep your lifestyle even though you are not working so that you make your money last in retirement?

The fact of the matter is that unless you are super rich, you have to plan your retirement expenses as early on as you can – the younger you start, the more comfortable your retirement years will be. Usually money makes money, so if you start saving young, you can multiply your savings over time, provided you have not taken bad hits due to business losses, money market adventures or even housing mortgages.

You’ll probably need more money in retirement than you do now because the cost of living continuously goes up as does the cost of medical care. Budget your income and expenditures so you can make your money last in retirement.

1.    Save – save as much as you possibly can, living frugally and not in debt.

2.    Invest – invest your savings so that it makes more money than the inflation rate and then some. Some savings should be invested in easily available funds, which give you decent returns. A part can be invested in higher yielding funds or high risk investments including stocks and bonds. If you can afford another mortgage, you could invest in another property, either residential or commercial, which can be rented out.

3.    Avoid taking money out of your savings or retirement funds unless there is a dire emergency.

4.    Take as much medical insurance as you can afford – medical expenses are very high as you grow older.

5.    Start taking social security at a later age and you can get more money and then you can make your money last in retirement.

6.    Work as long as you are able to, even after retirement age. If you cannot work at a full time job, try working part-time or from home as this will supplement your existing income.

7.    Check on your tax breaks and make sure that you are not paying out more than you should.

8.    If you have dependents, consider having life insurance so that if anything happens to you, your loved ones are protected.

In order to make your money last in retirement, you need to budget and plan as early as possible.