Retirement is often accompanied by a reduction of income. Many even hold off their retirement for many years for the fear of being unable to adjust to a lower level of income. While proper planning is important to maximise your retirement funds, those facing a reduction need not fear. With a few minor adjustments and proper budgeting a pensioner can enjoy the same level of financial security and comfort as they had during their working lives. Here are a few easy tips that combined can help to significantly increase the amount of spare cash you have available to you.
*First and foremost, the most important thing you can do (and arguably the easiest way to save) is continue to budget. Assess what your new income is going to be and alter your weekly budget accordingly. There is no easier way to ensure that you will have enough money towards the end of the week for essentials or emergencies. Make sure you know exactly when you have money coming in, and how much. Next note when bills and other payments have to be made for the entire year. Once these two things are taken care of, assess how much money you need for essential expenditure and savings. That leaves you in a comfortable position to know how much money you have at your luxury.
*Assess your housing:
So the kids are grown-up and moved out, yet you never really thought about leaving the comfortable five bedroom you call home. Whilst family memories are a strong reason to stay, large houses can run up large heating and utility bills. Why not think of selling or renting and finding alternative property more suitable to your current needs? This can save you hundreds of dollars each year.
*Use your benefits:
Old age pensioners are often provided with deals and special pricing for various events and societies. If you find yourself attending an event, or joining a society ensure that you ask about an OAP price. Even if you are lucky enough to look as young as you feel, take advantage of these offers when they are available to make life on a pension easier for yourself.
*Adjust your grocery shop:
It may seem strange, but think about all of those items that you may or may not have bought during your working days. Overpriced pre-packed sandwiches and salads and other lunch items that are easy to eat on the go. Use your new found freedom to practice your culinary skills and make items from scratch. Shop around to ensure you get the best deals. Also remember your activity levels may have changed. Assess your diet and see if you need to each as much food as you did when working. This way you can ensure you stay healthy and avoid old age obesity and the associated illnesses such as diabetes.
*Don’t rule out working completely:
Many of those who hit retirement age may not be happy going from full time work to having so much time off. While it is important to relax and avoid stress, consider maybe a part-time job or setting up that small business you always wanted to but never had the time. That extra cash can be a very welcome boost to your retirement plan income.
*Sell your unused items:
Alot of junk can accumulate in a garage throughout 50 years of work. However, one man’s junk is another man’s treasure. Even broken electronic equipment can be sold for a surprisingly high amount due to the increasing amount of ‘repair guros’ out there. Now your done work do you really need those three computers? How about that like new ski equipment that hasn’t been used in five years? Selling unused items can give you a temporary boost to income, helping you to save money.
Remember to enjoy your retirement – you’ve earned it! Worrying about your new level of income provides unneeded stress and is unhealthy. With good budgeting and a few alterations you can live comfortably as ever on your new income level.