Those approaching retirement need to start thinking about a plan of attack when it comes to their post-work finances, said a report.
According to U.S. News and World Report, a number of Americans are falling into retirement without a firm plan in place, and for many, that's meant working past retirement age or living paycheck to paycheck on a fixed income. In order to avoid such a scenario, retirees need to determine the health of their savings and investments before they finish work.
The report suggests consumers compare their expected expenses with what they have saved and what return they can expect on their investments. It may be wise to consider income-bearing investment options later in life, such as a fixed annuity contract arranged with a life insurance company.
Others may want to hold off on tapping into their Social Security benefits until later in life, said the report, something that could guarantee income throughout retirement. It's their call to make, said the report, and a whole life insurance policy with an income-bearing component may make the decision easier.
Retirees are advised to consider a term life insurance policy at the least when approaching retirement, since spouses or dependent family will need a source of income even after they pass away.