Many financial planners recommend that seniors develop a retirement plan that allows them to live off of 80 percent of their annual income. In addition to basic living expenses, retirees may want to consider allocating a portion of their life savings to caregiving services to ensure that their health and safety are accounted for, as they grow older.
Although retirement allows you to relax and dedicate more time to the things you love, the absence of consistent income increases the importance of managing a planned budget that’s built to protect you from unexpected costs. Creating a plan that allows you to be frugal without downgrading your lifestyle is possible and can easily happen when prioritizing your expenses. Consider the following tips that can help you save money in retirement without forcing you to compromise on the things you’ve always wanted to do.
Save During Retirement
Cutting back on unnecessary expenses and focusing your retirement budget on items or events that provide purpose allows you to enjoy your time without concern. Opting for an assisted or independent living community that’s near friends and family allows you to cut out commuting costs and may make you want to consider switching from personal to public transportation.Consolidating accounts to prevent miscellaneous fees and getting rid of redundant or useless services gives you more control over your long-term finances.
Combining accounts to avoid miscellaneous fees and getting rid of unnecessary or useless services gives you more control over your long-term finances. Other practical ways to cut costs in retirement include:
Purchase Items With Cash
Choosing to make purchases with cash instead of credit can help you save 20% more annually by cutting out interest rates. Using cash has also been proven to increase awareness around purchase decisions, making it less attractive to spend your hard-earned money on trivial items.
Track Your Monthly Spending Habits
Being able to account for all of your expenses allows you to see exactly where your money is going and where you can afford to cut back.
Store All of Your Savings
When you can purchase something at a discounted rate, store the savings in your retirement account. This helps prevent you from using all of your savings on random items, which can add up over time and affect your budget.
Take Advantage of Discounts
There are many different programs that offer significant discounts for seniors. Being a member of AAA, AARP, or the Farm Bureau allows you to save big on restaurants, hotels, auto repairs, and other living expenses. The money you save through these programs can be sent back to your retirement account.
Cut Back On Groceries
Dining at restaurants often can take an enormous toll on your retirement savings. If you want to go out for a nice meal with your friends or family, refer to online websites like restaurant.com or groupon.com to take advantage of their discounts. Many restaurants throughout the Beaverton community offer happy hour savings, accept coupons, and offer exclusive deals on their Facebook page.
Hunt For The Best Price
If you need repairs done to your home, make sure you receive a few different estimates from a variety of local businesses. It’s also wise to make sure that the company you’re interested in is in good standing with the Better Business Bureau to protect you from scams or unqualified workers. Websites like Angieslist.com can help you review a broad range of local businesses, see what other like-minded people thought of each company’s service, and give you options when it comes to pricing.
Look For Great Deals When Traveling
Websites such as Priceline.com and BiddingForTravel.com allow you to bid on great destination trips throughout the world, saving you hundreds of dollars. With sites like these, you can stay in four-star hotels in major locations for as little as $40 per night. And, many popular travel websites connect you with discounted car rentals, airline tickets, and local events.
Saving money does not have to equal losing a lifestyle you enjoy. Partaking in these four practices can help you stay within budget, while still experiencing the retirement you’ve been looking forward to.
Get Rid of Debt
Any debt that carries with you in retirement will affect your income. Consider the difference between making a monthly mortgage payment and paying off the remainder of your loan. Doing so can save you thousands of dollars each year and give you much more control over your long-term finances. Many seniors will sell their homes and use the money to downsize to an assisted or independent living community. The benefits of this are that you can consolidate expenses dedicated to utilities, groceries, and other living costs. If you have credit card debt, make sure to tackle this as soon as possible since most credit companies have high-interest rates.
Manage Your Taxes
Some of your income as a retiree is still taxable, such as distributions from tax-deferred savings plans. Other income may not be taxable for Social Security benefits. If you have multiple sources of revenue, understanding how to manage your accounts can significantly reduce your annual tax requirements. Work with a CPA or tax specialists to develop a proactive plan that helps you avoid losing your savings to taxes.
Choose Generic Prescriptions
Seniors with chronic conditions understand the financial toll premium prescription drugs can take. An easy way to cut down on medical expenses is to ask your primary physician for a generic version of whatever brand name drug they are prescribing. You may also want to consider subscribing to mail-order prescription services to receive your medication or purchasing bulk orders at discounted rates.
Hearthstone Senior Living Helps You Enjoy Your Retirement Without Stress
Retirement is meant to be one of the most enjoyable times in our lives, not a source of stress. The staff at Hearthstone Senior Living can help you make the most of your retirement and live comfortably without concern over your future.
You can learn more about our living spaces, our staff, and our 24/7 caregiving services by scheduling a tour at Hearthstone of Beaverton and/or Hearthstone at Murrayhill.
We provide direct access to on-site caregivers and medication aides who are available 24 hours a day. If your loved ones need support around personal organization, managing their medications, or any other type of caregiving assistance, our staff is ready to help.
12520 SW Hart Road
Beaverton, OR 97008
We are located at:
10880 SW Davies Rd
Beaverton, OR 97008
Please stop by if you happen to be in the area!