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Why the First Decade of Retirement Is the Most Important

by Peter J. Creedon

By Zina Kumok

If you’ve been counting the days until you can sit on the beach, it may be tempting to let go of your frugal habits. While you should enjoy what you’ve saved for, you also need to realize that you’re living on a fixed income. Talk to a financial advisor about how much you should live on each year and stick to a budget. That way, you can spend money on the things that matter without worrying about running dry in your 80s.

One of the best ways you can position yourself in the first decade of retirement is by delaying Social Security. “If you postpone taking Social Security until age 70, your benefit increases approximately 8% a year,” says Peter J. Creedon, CEO of Crystal Brook Advisors in New York City. If you have a pension or other retirement account you can use until you turn 70, postponing will provide a huge boost toward your nest egg. Having a guaranteed form of income like Social Security can be a big boon – especially if you end up getting more than you counted

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