Outliving my savings is a great fear of mine. I have seen clients, of clients who struggle with Social Security as their sole income source. They have depleted all their other monies and options.
They were coming to the NFP to find assistance with everything, food, clothing, shelter, medical care.
When my wife’s evil prior employer stopped paying her, my wife was forced to go on to unemployment. She accepted a part-time position, granted at a higher hourly salary than she was making, yet less hours. She was thinking she was destined to be a premature retiree.
Yes, I want her to keep working, granted she is just now eligible for her minimal Social Security.
I know the rules of thumb to limit your risks of outliving your income:
Delay SS till age 70, but I am already pushed to 67, and family history is on SS’s side not mine.
Budget carefully, easier if you don’t live in Illinois and their property taxes, health insurance is extremely expensive, and many have to switch plans annually to afford their plan or supplemental plan.
Buy an annuity to provide an income stream, granted there are products out there that will guarantee your family will get at least your initial investment back is you kick early. It helps if you know what your expiration date is…
It will always be a crap shoot and working and savings are the best options to survive with some cash at the end.