The New York Times lists six steps that people nearing retirement can take to increase the odds of not outliving their savings. All of these steps assume a person will not delay retirement or work in retirement. Though working longer has financial, social and, potentially, health benefits, this is not an option available or preferred by everyone. The six steps are as follows:

• Practice Living on a Tighter Budget: Conventional wisdom holds that spending will decrease in retirement relative to the working years. In reality, this is not always the case. Living on a tighter budget prior to retirement can help a couple alter spending habits and determine what is realistic given their expected lifestyle.

• Maximize Social Security Benefits: Lifetime annual Social Security benefits increase for each year claiming benefits is delayed, resulting in a potential 75% increase for a person who postpones claim until age 70 instead of age 62. Health is a factor, since the advantage of delaying wouldn’t be realized until about age 77. Married couples also have claiming strategy options that may alter the optimal time to begin taking benefits.

• Reduce Taxes: Every dollar not spent on taxes is a dollar saved. One not-so-apparent way to reduce taxes is to convert traditional IRA balances to a Roth IRA. If spaced out to avoid being bumped into a higher tax bracket, Roth IRA conversions can reduce future tax bills and future required minimum withdrawals (RMDs).

• Take Out a Reverse Mortgage: A reverse mortgage allows a homeowners to tap their home’s equity. Unlike a traditional home equity line, no payments are due until the owner(s) pass or the house is sold. The article says that homeowners will pay an upfront fee of 0.5% of balances up to 60% of the property’s value and an annual mortgage insurance premium of 1.25%.

• Use Annuities: Annuities provide lifetime income and offer a higher payout than bonds currently do. Stagger purchases during periods of interest rate uncertainty.

• Downsize: One of the best ways to make savings last is to reduce fixed expenses, such as housing. Moving to smaller property in a less expensive area will free up cash.

Source: “6 Strategies to Extend Savings Without Working Longer,” Tara Siegel Bernard, The New York Times, August 7, 2015.