Never let your financial adviser or an expert to control your savings or investments. If you take wrong advice, you will end up saving too much (more than what you require), in the best interest of your financial adviser. This happens to many people where these money experts make profits out of your anxiety and fear.
It may not be practical for the majority of retirees to make 100% of your pre-retirement income, unless you retire with a golden parachute. Most retirees make money with a combination of retirement savings with Social Security and pensions (if applicable).
No matter whether you have a large nest egg or not, here are 10 ideas to keep your finances long-lasting.
1) Finish up your debt before you retire
First things first. Determine your assets and debts before retiring. If you were a careful spender, you will definitely end up with more assets than debts. By now, you should have finished up with your student loans and your mortgage may be paid off. Avoid taking new debts months before your retirement.
2) Sticking to your requirements
A number of retirees hang on their old style of living, their old houses and other things. But think again. You don’t really need three or four bedrooms when your kids are grown and don’t live with you anymore. This is just an example of what ‘unwanted luxuries’ can be. In case your budget is limited, you can consider shifting to a small and less expensive place with smaller utility bills and lower taxes.
3) Consider a part-time job
Post retirement, many people still like to earn, go out and mingle with people. Though they are no longer facing typical workplace issues like promotions, office politics, work stress etc - they still make useful contributions for everyday family needs. You may consider your retirement as you would a summer job many years ago. You can live your life happily and make some extra income at the same time, and most of all ensure you enjoy this and have fun.
4) Benefit from sharing homes
Consider sharing your home with friends and relatives, especially if you are a single. You can also rent a portion of your home if you own a large house. Several houses have mother-in-law suites and double master bedrooms. So remember, two can live cheaper than one and the setup is good for companionship too.
5) Make use of your friends
Consider asking for a lift from your friends when going to the airport or the store instead of using a cab service, small incentives like this can make a difference in day to day lifestyle. Also, do not forget to reciprocate. You can also consider helping each other by sharing other things related to your culinary skills, housework and financial expertise. By helping each other out, you can get number of things done without spending a penny.
6) Prefer free entertainment over expensive visits
If you wish to cruise the Mediterranean, you might have to spend all your savings. Instead, try on your fall festivals or free summer concerts offered by your community. Check your libraries for book clubs, free seminars, lectures and movies. A social club, church or veteran’s association can offer useful activities for free or a small cost. Visit a garden or recreational parks which will give you the right recreation.
7) Plan your meal timing properly
People like to visit restaurants once in a while, this is normal. Try and establish a luxury service in line with your spending and enjoy these times in moderation. Remember, breakfasts are usually cheaper than lunches and lunches are usually cheaper than dinners. If you prefer going out on a dinner, go out early and look for senior citizen discounts. You can also consider places that serve breakfast-type foods like egg and sausages. They are cheaper than steak and potatoes.
8) Giving more freedom to kids can also reduce your burdens
As the saying goes, “Give your children roots and wings”. By educating your children and caring for them all these days, you have already given them roots. Now let them learn the realities and challenges in life. Let your children find their own apartments, make their own decisions and live independently. The idea is a double-purpose resolver, you will not only be training your children to make their own living but also lessen your responsibilities. Of course you are their responsible guardian, provide help and support whenever necessary and be readily available for advice and assurance.
9) Make use of all the discounts offered
You may consider taking supplemental medical insurance and joining AARP for availing maximum discounts. Go around and find out all the available senior citizen discounts and tax breaks. There are lots of programs for the elders allowing them to access free transportation, subsidized health services and low-cost foods.
10) Consider settling in a friendlier country
Many people like to retire and live in places where their grandparents have lived to enjoy the love and support of their dear ones. Did you know that there are retirement enclaves in countries like Costa Rica, Mexico and other countries in Latin America? Countries like Thailand, Malaysia and many other countries in Asia offer low cost living benefits and high levels of respect for the elderly people. If you want to retire overseas, research all details thoroughly. After all, it’s a great option for budget-minded people.
Retiring with limited finances happens in many people’s life. As a responsible retiree, you must do your bit to save your family and live peacefully in your remaining days. The above tips aimed to be of the utmost help and support through these decision geared to solidify a happy retired life.
If you have other ideas to help the elderly retire peacefully, please share them in the comment section below.
Image Sourced: Retirees