Saving Money During Retirement
Retirement can come quicker than you think. While you might be dreaming about the free time and relaxation, the truth of the matter is that most people don’t have enough money saved to enjoy retirement the way they had hoped to.
Here are 26 ways to save money during retirement.
Downsize Your Home
One of the best ways to save money once you retire is to downsize your home.
Aside from a lower mortgage, moving to a smaller and less expensive home can also save you a significant amount of money on property taxes and maintenance costs.
Utility bills may also turn out to cost less since you are not heating and/or cooling as much space.
Sell and Rent Instead
Downsizing can also make you money, depending on your home equity. Some people are able to sell their home when they retire, and have a substantial amount of equity left in their pockets.
If you choose to rent instead of buy, after selling your home, you can save money by again, avoiding additional costs like property taxes and maintenance.
If you’re willing to downsize your home upon retirement, you might consider relocating to a different city or state.
Housing costs vary based on location, and you may be able to find cheaper homes (and cheaper interest rates).
Relocation: Cost of Living
In addition to housing, the cost of living varies based on location as well. Which means that your monthly expenses in general could be lower.
Everything from utility expenses to grocery prices vary based on location.
Rent or Borrow Instead
Aside from home ownership, you should consider renting any equipment you may need rather than buy. Most people find retirement is a good time to downsize in all aspects of life. Having less stuff makes for a more peaceful home.
Everything from tools to household appliances can be rented. If you only need to use something once or twice, consider renting it as needed rather than purchasing brand new for a much higher cost.
Of course, borrowing from friends and family would be the ultimate savings plan here.
Take Advantage of Discounts
The majority of retirees are seniors. The advantage that comes with this milestone age are discounts. Various stores offer discounts to seniors or retirees—which can save you a few bucks on your most used products.
Shop at stores that offer a senior’s discount and take full advantage.
Other discounts to take advantage of involve transportation. If you live in the city and have public transportation available, ask for a senior’s discounts on a daily, weekly, or monthly bus pass.
Car insurance companies may also offer discounts to seniors, or they may offer discounts when you change your driving behavior—such as driving less often.
Downsize Your Vehicle
Speaking of vehicles, another way to save money in retirement is to downsize your vehicle. If you have car payments you might consider selling your car and buying used—avoiding future payments.
You can also save money on gas by buying a smaller vehicle, or a more fuel-efficient model.
Downsize Your Vehicles
In addition to switching up what you drive, you might consider getting rid of your car completely. This is most beneficial if you are a two-vehicle household with two retirees.
There may not be a need to own two vehicles if you are both retired. Consider selling one completely and cutting that entire expense.
Consider a Side Gig
It’s understandable that most people retire for a reason—so they no longer have to work. So, working during retirement sounds anything but appealing.
A retirement side gig is easier than you think though.
Retirement Side Gigs
Examples of retirement side gigs include, providing basic home maintenance to friends and neighbors, or basic cleaning services.
If you are able bodied, you can grocery shop for others when you do your own weekly shop, and delivery the groceries for a small, but helpful fee.
Make Money Off Your Hobbies
Similar to side gigs, you can make some extra cash during retirement using your hobbies.
Perhaps you’re a skilled painter or woodworker, or you enjoy knitting or photography. Sell your paintings or bird houses, or join vendor events and set up a table of all your crafts.
If anything, the profit from your hobbies can fund your groceries or gas expenses.
Review Your Utility Bills
This can help in two ways: discounts, and cutting expenses entirely.
Find out if your utility companies offer senior discounts (most likely cell phone companies or cable companies). Some utility companies offer different payment plans to seniors, or full discounts to low-income individuals.
Cut the Costs
As mentioned previously, reviewing your utility bills can help you determine which ones to cut to save you money.
Most people in today’s world end up with several entertainment expenses that are both redundant and unnecessary.
Ditch the Extra Entertainment
Entertainment costs include things like, cable TV, streaming services, and a-la-carte programming.
Most people in general do not need all of this. With all of the streaming services available these days you can likely cut your cable bill entirely and rely only on streaming.
Or, cut the number of streaming services you pay for each month, including a-la-carte channels like Paramount+ or HBO.
Join the Online World
In relation to streaming services, another way to save is to join the online world and take advantage of the countless ways to save money using your phone.
This includes coupon apps, online marketplaces, loyalty programs, and even online retailers.
One of the best ways for anyone to save money is to take advantage of loyalty programs—specifically when it comes to groceries.
There are many different loyalty programs that build points that can be redeemed for instant cash. Some loyalty programs offer discounts on purchases if you are a member. This includes groceries, gas, clothing, and more.
Practice Meal Planning
Meal planning may sound like a younger generation thing, but they seem to be on to something.
Meal planning can save you money simply by sticking to a list or menu. Plan your meals for the week and shop accordingly.
Meal portioning also reduces the chance of over-cooking and tossing leftovers.
Canning and Preserving
Another way to save money on groceries is to harvest your own. Consider setting up a small (or big, depending on your space) garden for your seasonal veggies.
Once the season is over, harvest and preserve them. Thanks to rising food costs, many households are bringing back the art of canning—which can supply you with food all year round.
Save on Healthcare with Telemedicine
Depending on where you live, you can potentially save a lot of money during retirement by utilizing different healthcare services.
Use telemedicine for simply health concerns and prescription refills.
Seek out Government Benefits
Again, depending on where you live, there are various government benefits for both seniors and retirees.
This includes housing assistance, food assistance, transportation services, recreational activities, and more.
Talk to your financial advisor about tax deductions available to seniors. These deductions change based on age, and whether or not you and your spouse are both retired.
During the working years a lot of what you didn’t have time for was outsourced—at a cost. But now that you’re home all day you have more time to do those jobs, saving you from hiring that contractor/maid/gardener.
Cut the costs of hiring someone else and do those things yourself.
Keep Tabs on Your Debt
Hopefully by the time you retire you are well versed in the debt department. But if not, managing your debt is imperative to ensuring you don’t run out of money in retirement.
You can save money on your already incurred debt in a few ways.
Save On Your Debt
The interest payments are what makes paying off debt so difficult. To save money on your debt payments consider consolidating your debt—this significantly reduces your interest payments.
Pay off your credit cards and smaller loans with a Line of Credit, or a bank loan with a smaller interest rate.
You can also switch to different lenders that offer a cheaper interest rate. Always talk to a financial advisor first before making a switch.
Avoid Financial Gossip
Although it can be helpful to receive information from friends and family about financial responsibilities, it can also send you in the wrong direction.
Well meaning friends can offer outdated advice, or advice that is not relevant to where you live. Always be aware of helpful advice when it comes to money.
As with all financial advice, it is encouraged that you seek professional guidance through a financial advisor when organizing your money.
Financial Advisors know all the tips and tricks to take advantage of different programs available to you.
Saving money for retirement is tough, but saving money while already retired can be even tougher. But if you think smart, and get creative, a few bucks here and there can make a big difference.