Make your money last: Tips to manage your finances in retirement

Retirement should be a time for family, travel, and relaxation, not stressing over monthly budgets. Getting to a place where you can do that comfortably, however, can take some planning so that you are sure the funds you have saved will support the lifestyle you have worked hard to build over the decades.

Let's walk through some practical steps to help you manage your retirement savings, understand your account options, and secure your financial future.

What you’ll learn

• Define your spending goals
• Choose the right Individual Retirement Account (IRA)
• Protect your funds with low-risk savings
• Avoid unnecessary account fees
• Consolidate your financial accounts
• Protect yourself from financial fraud
• Seek unbiased financial guidance
• Turn your financial aspirations into reality

Define your spending goals

It is easy to underestimate how much you will spend once you stop working. Before you make any major financial decisions, calculate your expected monthly expenses. This means taking a realistic look at your current bills, healthcare costs, and lifestyle goals. For example, if your goal is to travel internationally twice a year, you need to budget for that.

In other words, figure out exactly what your lifestyle will cost. If you expect your basic living expenses to be $4,000 a month and you want $1,000 for travel and hobbies, you need a reliable income of at least $5,000 a month. Having a concrete number helps you create a more sustainable budget for your expenses.

Choose the right Individual Retirement Account (IRA)

Individual Retirement Accounts (IRAs) offer different tax benefits depending on your needs. Even if you are already retired, you might still have options to continue growing your money or managing your withdrawals efficiently. Here are the three most common retirement accounts.

Traditional IRA: This account allows your earnings to grow tax-deferred. You pay taxes when you make a withdrawal after age 59 ½. Consider this option if you want to reduce your taxable income now and expect to be in a lower tax bracket when you take the money out.

Roth IRA: A Roth IRA lets your earnings grow tax-free. You pay taxes on the money before you put it into the account. This is a great choice if you want more flexibility with your withdrawals or plan to work part-time in retirement. After age 59 ½, you can take out your contributions tax-free and penalty-free at any time, as long as the account has been open for at least 5 years.

SEP IRA: SEP stands for "simplified employee pension." If you run a small business or are self-employed in retirement, this account allows your earnings to grow tax-deferred. You can make tax-deductible contributions to reduce your current taxable income.

Learn about Alliant Credit Union’s Individual Retirement Accounts (IRA).

Protect your funds with low-risk savings

Once you retire, keeping your savings in accounts that provide predictable growth can allow your funds to continue to grow with minimum risks. Here are two tools that provide security while still growing your funds.

High-Rate Savings: These accounts offer a higher savings rate while keeping your money easily accessible. If you need funds for an unexpected medical bill or a sudden home repair, you can withdraw your cash without penalty. Your savings will grow more quickly instead of earning only pennies in a traditional savings account.

Learn more about Alliant Credit Union’s high-rate savings.

Certificates: If you have money you know you will not need right away, certificates offer outstanding, guaranteed interest rates. You agree to leave your funds untouched for a set period, anywhere from three months to 60 months and, in return, you earn a fixed rate. For example, putting $10,000 in a 12-month certificate ensures you know exactly how much interest you will earn by the end of the year, protecting you from market risks.

Learn more about Alliant Credit Union’s certificates.

Avoid unnecessary account fees

High fees can quickly eat away at your hard-earned savings. Stop settling for accounts that charge you just to hold your money. Instead, look for financial institutions that prioritize your financial health.

Some credit unions, like Alliant Credit Union, often feature no minimum deposit requirements, no monthly maintenance fees, and no fees to transfer your money in and out. Keeping your money in these types of accounts allows you to spend your funds on what matters to you during your retirement.

Consolidate your financial accounts

Having multiple 401(k) plans from past employers or various savings accounts scattered across different banks makes it hard to track your wealth. Consolidating your accounts into a single institution can simplify your life.

You can often roll over older retirement plans into a Traditional or SEP IRA. This gives you a clearer picture of your total savings. Having all your funds in one place makes it much easier to calculate your required minimum distributions and manage your investments.

Protect yourself from financial fraud

Older adults are frequently targeted by financial scams. Be cautious about where you share your personal information, especially now with the wide use of AI. If you receive an unexpected call or email asking for your account details, do not respond.

Instead, contact your financial institution directly using a verified phone number on their website or listed on your debit or credit card. In short, always verify before you trust. Protecting your identity and your assets is a vital part of maintaining your financial security.

Seek unbiased financial guidance

Navigating a roadmap for your retirement is easier with a professional by your side. If you are unsure about which IRA is right for you or how to best manage your savings, reach out to a certified financial expert.

A good advisor will provide clear, unbiased advice tailored to your unique goals. They can help you compare products side-by-side and set up user-friendly tools to track your spending.

Learn more about Alliant’s retirement and investment services.

Turn your financial aspirations into reality

Navigating your finances in retirement does not have to feel overwhelming. By setting clear spending goals, using the right mix of IRAs, and choosing secure, high-yield savings options, you can build a stable foundation for your future.

Take a moment today to review your current accounts. Check for hidden fees, compare interest rates, and make sure your money is working as hard as you have. With a little planning and the right tools, you will be on your way to enjoying a comfortable, stress-free retirement.