3 Retirement Income Strategies That Can Help Your Money Last Longer

One of the biggest fears retirees face is running out of money. In today's economic environment, that concern is more than valid.

Inflation remains stubbornly elevated. Gas prices are sky-high, and it seems like everything from groceries to utilities suddenly costs more. Throw in the fact that your retirement savings might need to last for 20 to 30 years or longer, and it's easy to see why so many older Americans worry about depleting their nest eggs.

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The good news is that there are steps you can take to help your money last longer. Here are three strategies to employ if you're worried about your savings running out.

1. Delay Social Security if you can

The earliest age to claim Social Security is 62. It can be very tempting to file for benefits at that point and start getting the monthly checks you're entitled to.

But you should know that for each year you delay Social Security past 62, until the age of 70, your monthly benefits grow. At 67, you'll reach full retirement age if you were born in 1960 or later, which means your monthly Social Security checks are yours to enjoy without a reduction. If you delay your claim past that point, your benefits get an 8% yearly boost until your 70th birthday arrives.

Larger Social Security benefits don't just give you more spending power, though. They also put less pressure on your nest egg.

If you need $90,000 a year to keep up with your expenses, but you get $30,000 a year in Social Security, your nest egg only has to provide $60,000. Over time, that's crucial. If delaying Social Security puts more like $37,000 a year in your pocket, allowing you to limit IRA or 401(k) withdrawals to $53,000, that should give you even more peace of mind.

2. Keep investing for growth

Many people become conservative in their investment strategies after leaving the workforce. That's understandable.

After all, you're actively tapping your portfolio for income. So you don't have years to ride out market downturns like you did when you were younger. But while reducing portfolio risk is important, avoiding stocks entirely can create another problem.

If you stick with conservative assets, inflation might erode your portfolio's buying power over time, forcing you to increase withdrawals and put yourself at risk of running out. That's why it's important to keep a decent chunk of your portfolio in stocks. If you want to limit your risk, you may want to stick to broad market exchange-traded funds (ETFs), rather than sinking too much money into individual growth stocks.

3. Have a plan for market downturns

When you're forced to dip into your portfolio when your investments have lost value, you risk whittling down your savings sooner. You may not be able to keep your portfolio completely untouched during a stock market downturn -- especially a prolonged one. But if you're able to minimize withdrawals when your portfolio is down, you can lower your risk of eventually running out of money.

However, that may require you to be flexible with spending. Rather than waiting until you have to make hard choices on the spot, map out a plan in advance.

You may, for example, decide that if the stock market drops 10% or more, you'll reduce your annual travel budget from $10,000 to $5,000. You may also decide that if the market drops 20% or more, you'll skip your yearly trip.

This is just one example. But it's important to have a plan for market downturns and know what expenses you'll cut.

At the same time, it's smart to stockpile cash in case the market tumbles and stays down for a while. You don't want to go overboard here, since the rate of return you get on cash may not be able to keep up with inflation. But as a general rule of thumb, it's wise to have about one to three years' worth of living expenses in cash so you're able to leave your portfolio untouched when it's lost significant value.

It's natural to be concerned about running out of savings in retirement. But if you claim Social Security strategically, invest a decent chunk of your money for growth, and know how to react to market downturns, you can lower the chances of that happening.

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