With today’s longer lifespans and increased cost of living, Americans’ savings need to stretch further than ever. According to Our World in Data, life expectancy in the US hovers just under 80 years—a number that has continued to climb in recent decades.¹
From rising healthcare costs and the potential need for long-term care, to housing expenses and economic uncertainty, the cost of longevity can weigh heavily on those in and approaching retirement. The good news? It’s never too late—or too early—to take action. Making strides toward safeguarding your finances can help ensure that those years you’re looking forward to are truly rewarding.
The best financial decisions and spending habits aren’t one-size-fits-all—they depend on your lifestyle, circumstances, and the goals you want to achieve. To help you along the way, here are six smart strategies for stretching your savings, protecting your assets, and building lasting peace of mind for the road ahead.
1. Budget with Intention
Often thought of as a first step in managing spending, building a realistic, well-thought-out budget can be a game-changer for your overall financial plan. A good starting point is to thoughtfully consider how much you should allocate for different expenditures in your life—and determine what you are willing (and able) to spend over a week, month, and year. Conducting an upfront review of recurring expenses—such as subscriptions, utilities, and maintenance costs—can help prevent unnecessarily eroding your resources. And one simple way to up your savings and stretch your budget is to take advantage of senior discounts!
It can also be helpful to plan for increasing costs, since expenses like healthcare, energy bills, property taxes, and home maintenance continue to rise. Of course, over time your habits might change, so it is a good idea to regularly look through your spending and reassess your budget, because what feels essential at 60 may feel optional at 75—or vice vera.
2. Build a Safety Net
Alongside regular expenditures to account for, it’s essential to set up a sound financial cushion for unplanned costs down the line. Unexpected “what ifs,” such as emergency medical bills, caregiving responsibilities, or home repairs can be disruptive to more than just your routine. By preparing for these hurdles in advance, you can minimize the shock on your wallet, and give yourself financial breathing room during what otherwise may be a stressful time. To strengthen your savings, consider maximizing contributions to retirement accounts like 401(k)s or IRAs when possible, and diversifying assets across liquid savings, investments, and property to better weather risks—a financial advisor will be able to provide you with information tailored to your specific situation.
3. Strengthen Your Retirement Income
For many seniors, retirement income comes from multiple streams, and understanding how they work together is key to long-term stability. Start with any Social Security by learning what your benefits will be and considering the optimal time to begin receiving them. Delaying benefits until full retirement age—or even later, if possible—can result in higher monthly payments, though it’s important to weigh the pros and cons with a professional before making a decision.
If you have a pension or retirement savings account, work with a trusted financial advisor to develop a withdrawal strategy that ensures steady income while helping preserve your nest egg. Similarly, reviewing your investment portfolio with a professional can help you assess whether it aligns with your goals. The right approach will balance capital preservation with income generation, giving you both security and flexibility in retirement.
4. Put Technology to Work for You
With the rising utilization of smart technology, there are more and more ways to create savings in savvy ways. Small efficiency upgrades in your home—such as better insulation, LED lighting, or programmable thermostats—can keep bills lower over time. Another earnings opportunity? Using technology to unlock extra cash. You can take advantage of online marketplaces or even launch your own digital storefront to monetize hobbies that you love.
Virtual reality is another tool to help you stretch your dollars—all without leaving home. After a relatively small upfront cost, oftentimes just the cost of a headset or application, you can unlock a world of benefits and savings. For instance, you can step into interactive environments to play games or watch movies, connect through life-like experiences with family members, and even visit far away places that would otherwise be impossible to travel to. Getting creative with VR and other tech tools can allow you to enhance your life without the extra expenditure on travel and all other associated costs.
5. Invest in Longevity Upfront
Although it may sound counterintuitive, making some upfront investments into your healthcare and overall lifestyle can be a smart way to secure savings down the line. Prioritizing your wellbeing can include staying physically fit, utilizing virtual health services, and even making your home “future-friendly”—with upgrades like grab bars, non-slip flooring, and improved lighting to reduce risks and make aging in place easier.
You may also want to consider long-term care insurance, hybrid policies, or supplemental coverage to help protect savings in the case of larger medical concerns or the onset of a chronic illness.
6. Unlock the Value of Your Home
Your home isn’t just for living in—it’s likely one of your biggest financial assets. And, if you’re one of the many Americans planning to spend your retirement years at home, it’s essential to find financial strategies that allow you to do so on your own terms. A senior-focused home equity solution can help you do just that. By tapping into the hard-earned equity stored in your home, you can use its value to secure your finances without having to leave the place you love.
Two valuable tools stand out for older homeowners:
- A reverse mortgage: Designed specifically for homeowners age 62 and older, a reverse mortgage allows you to access your home equity through a variety of loan structures—including the standard Home Equity Conversion Mortgage (HECM), a Longbridge Platinum Mortgage, and a HECM For Purchase. One of the biggest benefits is that unlike a traditional mortgage where you make monthly payments to the lender, a reverse mortgage allows you to eliminate that monthly expense (as long as you meet your loan obligations, keeping current on property taxes, insurance, and maintenance).
Another financial benefit? The funds are income tax-free,² and repayment isn’t due³ until a maturity event, such as when the last borrower permanently leaves the home. For many, this makes a reverse mortgage a valuable tool to help achieve long-term financial security, providing a flexible safety net to cover everything from medical costs, home improvements, everyday living expenses, or even long-awaited bucket list items. - HELOC For Seniors®: Another option tailored to today’s retirees is HELOC For Seniors®—the first and only home equity line of credit (HELOC) built specifically for homeowners age 62 and older. Unlike traditional HELOCs, which often come with variable interest rates and the risk of steep payment hikes during the repayment period, HELOC For Seniors® features interest-only payments for the life of the loan.³ This is especially helpful for keeping monthly costs more predictable and manageable on a fixed income.
When used responsibly, home equity solutions can help extend your retirement savings, reduce financial stress, and give you the freedom to enjoy retirement in the place you feel most comfortable: your home. The key is to evaluate your goals and consult with a trusted professional to determine which option best supports your long-term financial well-being.
Finding Security Now and Down the Line
Living longer is a gift—but it takes smart preparation to make the most of it. When you employ smart strategies built for longevity, you give yourself options—options that can make your golden years not only secure, but truly yours.
If you’re interested in seeing which home equity solution might be a good fit for your long-term financial plan, the Longbridge Financial team is here to help.
Let’s make sure your finances help power the retirement you deserve. Contact our team today!