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Chapter 20. And Now It's Time to Retire > Making Your Money Last as Long as You... - Pg. 201

And Now It's Time to Retire · Tax deferral is still available on the account. · Heirs are entitled to remainder if you die. · Income averaging is not allowed. Disadvantages: · Investment decisions are made by the account holder. Lump Sum Advantages: · You can have access to all of your money immediately. · Taxes will be reduced if you "average" them as though you took the money over 10 years. · Heirs are entitled to remainder if you die. 201 Warning! Deciding to take your payout in a lump sum is an irreversible decision. Good planning is very important. Disadvantages: · Taxes are due for the lump sum, even though your calculations are based on multiple years. · Restrictions cover who can take the averaging option. Making Your Money Last as Long as You Do How do you make your money last for the rest of your life? For starters, you could sell your car, give up eating, and join a nudist colony. Just kidding! Running out of money is a retiree's biggest fear. What can you do to make your money last longer than you do? Retiring early may not be an option that you can afford right now. You may have to work until age 65 or even longer if you haven't saved enough. Each year you work, you put off collecting your pension. And each year you work, you may also be able to save and invest. As much as most of us are eager to enjoy life after retirement, working a little longer may not be a horrible fate. In fact, there will be a shortage of workers in the future, so working longer may be the norm. Consider waiting before you begin to collect your Social Security benefits if you continue working. For every year you wait, the Social Security administration will increase your benefit check. Those increases stop at age 70, though. Entertain the idea of working in retirement. That's not a new concept, but, in recent years, more employers have been looking for retirees to hire. They have found retired workers to be loyal and willing to work flexible schedules. That may not necessarily mean serving burgers with the teens at the corner burger joint. It's possible that your old employer might want you back as a consultant or to pick up the slack during the busy season. There are a variety of opportunities out there. For example, head to Disney World in Orlando and check out the number of retirees working there. They're all smiling as they leave with their paycheck in hand each week.