As you plan for retirement, you might wonder, “Will I be able to live on my expected retirement income?” It’s a common question, and you’re right to consider it. None of us know exactly how long our retirement years will last, what unexpected expenses might pop up, and how inflation will fluctuate to impact our purchasing power.
As with most other major life decisions, addressing this question ahead of time is better than taking a leap of faith and worrying about it later. So as you plan for retirement, consider some of these different ways to slash expenses and boost your income.
Make a move. For most of us, housing is still one of our largest expenses. Many retirees address this problem by selling the large family home, and downsizing into a smaller home or condo. And don’t be afraid to rent; for some, hassle-free repairs are worth it. You won’t have to worry about replacing the roof or buying new appliances ever again.
Clean out. We spend much of our lives accumulating stuff, but at some point it all becomes a burden. If you decide to clean out the garage or attic, try your hand at selling items on eBay or Amazon. You can do it slowly over time, if you wish, and boost your monthly income with what is essentially a part-time work-from-home gig.
Become a one-car family. For many, two cars are an absolute necessity during their working years. But after retirement, many couples find that they can function just fine with one vehicle. Not only can you avoid a car payment, but also the maintenance and repairs that come along with owning a second vehicle.
Avoid travel at peak times. Now that you don’t have to rely upon a work or school schedule, you can take advantage of steeply discounted travel rates. And, as a bonus, most of your travel destinations will be less crowded and more enjoyable during the off season.
Delay claiming Social Security benefits. If you can, try to wait until your full retirement age to claim your full benefit amount. Even better, delaying a bit longer can earn you larger checks (by 8 percent per year that you delay until age 70).
These are just a few common tips to help you boost your income and save money in retirement. We have plenty more creative ideas that we can gear to suit your situation. Let’s discuss your retirement plans at our next appointment, and we can help you implement a plan that addresses your concerns.