With the current low interest rate environment, a financial planner is saying unorthodox income-planning strategies need to be considered, such as using IRA or 401(k) funds sooner in the retirement timeframe to avoid drawing on Social Security benefits earlier than necessary.
"Going along with 'business as usual' is not a sound retirement planning strategy today—it's a significant risk in this economic climate," says retirement planner Daniel A. White. "When the landscape changes, seniors and those approaching retirement age need to adjust their strategies and not be afraid to try new or different methods to achieve their goals."
Maximizing income streams has become a much larger focus for retirees. Considering deferring Social Security payments until the age of 66 has become much more attractive: a more than $500 increase to a $2,000 monthly payment awaits those who can use other funds to make up the difference.
Today's retirees face multiple challenges with lower housing prices and rising food, transportation and health care costs, making it more important than ever to plan ahead, White adds.
