As an illustration of this, Norwitz points to a study his firm did looking into how detrimental a bear market can be during the early years of retirement. The fact is, you never earn the average, and when you are in the distribution mode, the sequence of returns is very important. A second benefit of delaying retirement is how much it can raise one's Social Security benefits, says Jim Thompson, director of shareholder education for the AARP Investment Program from Scudder . But if they delay their retirement until age 67, they will get all of their Social Security benefits. Rebudget and Return to Work Financial planners also recommend that new retirees who've suffered steep losses return to work or significantly rework their budgets.
Some financial planners recommend taking out reverse mortgages.
The loan, plus interest, doesn't become payable until the borrower or the last remaining spouse ceases to live in the house. The borrower or the borrower's heirs have the option of repaying the loan and keeping the house, or selling it. However, the AARP warns that the interest on reverse mortgages can be excessively high and advises senior citizens to be careful before taking out such a loan. Hang in there. And take advantage of any opportunity to continue to save and invest that you can get.