No matter how carefully you save or how much you prepare, the thought of money running out in retirement can still feel overwhelming and difficult to ignore.

The reality is that everyday expenses continue to add up, personal priorities often shift with time, and unexpected costs have a way of appearing when least expected.

However, with careful financial planning and steady adjustments made along the way, it is possible to stretch your retirement nest egg so that it lasts for many decades.

Here are eight practical and effective strategies designed to help you protect your hard-earned savings and keep them intact throughout your retirement years.


1. Be realistic about expenses

Too many people underestimate how much they will actually spend once they retire, which leads to avoidable financial strain. Financial planner Linda Bentley Gillespie warns, “A lot of people are not honest with themselves about how much they will spend in retirement.”

Experts recommend reviewing both fixed costs like housing and insurance, as well as variable costs such as dining, gas, and vacations. A spreadsheet or budgeting app can be powerful tools for building a clear and sustainable picture of your retirement lifestyle.

2. See where you can save

Retirement doesn’t mean you should stop being mindful about your spending, especially with expenses that don’t add value to your life. Downsizing to a smaller home, eliminating high-interest debt, or reducing unnecessary subscriptions are straightforward ways to cut costs.

Even small reductions, such as eating out less often, can add up to meaningful long-term savings. Avoid big, impulsive purchases like RVs or boats, as they often create heavy financial burdens beyond the initial price tag.


3. Figure out the right withdrawal rate

Knowing how much to withdraw from your savings each year is crucial for making your money last. The “4 percent rule” suggests withdrawing 4 percent in your first year of retirement and then adjusting annually for inflation.

For example, a $1 million nest egg would provide $40,000 in year one, then increase based on inflation. A Morningstar study shows this approach gives retirees a strong chance of maintaining funds for 30 years, provided they keep a balanced investment portfolio.

4. Play catch-up

If you’re 50 or older and still building your retirement savings, the IRS allows larger contributions to accounts like 401(k)s and IRAs. These “catch-up contributions” are designed to help late savers close the gap and strengthen their nest egg.

In 2024, workers over 50 can put $30,500 into workplace retirement plans and $8,000 into IRAs. Financial analyst Greg McBride emphasizes that these contributions can significantly improve financial security as retirement approaches.


Also read: How one retiree saved $638 a month by cutting these 5 common bills

5. Be strategic about Social Security

When to claim Social Security is one of the most impactful financial decisions retirees make. Claiming before your full retirement age reduces your benefits permanently, while delaying can boost them considerably.

McBride explains, “That is a benefit that is 24 percent higher than if you claim it at age 67.” For someone with a $2,000 monthly benefit, waiting until age 70 would increase it to $2,480—a permanent, inflation-adjusted raise that compounds over time.

6. Stay on top of your investments

Investments cannot simply be set and forgotten, especially when your financial future depends on them. Research director Tyler Bond stresses the importance of making adjustments over time to balance risk and stability.

Generally, older retirees should reduce exposure to volatile assets like stocks in favor of safer holdings such as bonds and cash. At the same time, avoiding high-fee funds and annuities can protect your savings from being quietly eroded by costs.


Also read: Discover the secret to saving $10,000 in just half a year with these 5 simple tricks

7. Don’t forget about health care costs

Healthcare remains one of the largest expenses for retirees, with Fidelity estimating that a 65-year-old couple may need $330,000 just for medical needs. Delaying retirement until you are Medicare-eligible can significantly reduce the burden of private insurance.

Workers should also consider health savings accounts, which offer triple tax advantages if paired with high-deductible plans. McBride points out that HSAs are particularly powerful because contributions, growth, and withdrawals for medical expenses all remain untaxed.

8. Consider a side hustle

Extending your income stream is a practical way to protect your retirement funds while keeping engaged. A part-time job or side hustle not only helps cover expenses but also allows your investments more time to grow.

Financial planner Robert Holzbach highlights that “an extra $10,000 a year can go a long way because you aren’t touching $10,000 in retirement savings.” Creative income sources like pet sitting, renting out your home, or hosting exchange students can provide both financial and personal rewards.

Read next: The 4% rule is outdated—experts say the 4.7% rule could help retirees stretch their paychecks further
If you were planning your retirement today, which of these strategies would you prioritize first—and why? Share your thoughts and experiences in the comments so others can learn from your approach.