According to the India Retirement Index study (IRIS) conducted by Kantar for Max Life Insurance Company, “More than 80% of Urban Indians fear they will run out of money in retirement.”
Have you also been fearing the same and looking for the best strategies to manage and make the most of your saved money during your retirement?
Then, we’ve got you covered!
Saving today plays a vital role in planning your pension needs. Focusing on it can help you manage your older days effectively. However, despite having enough savings, a lack of knowledge about spending habits can hurt your retirement.
Hence, let’s dive deep into these best ways to save money in retirement that can help you minimize your expenses, funnel your extra cash to your savings and get the most out of it.These will help you not only meet all your needs while being stress-free about finances but also continue your lifestyle even during retirement.
Money-saving tips for retirees:
Make a budget and stick to it.
Establishing a budget can help you replan how much you can still save. The best way to do so is by listing your expenses, such as food, shopping, gifts for grandkids, groceries, personal care, restaurants, travel, etc. Calculate the percentage of each category and stick to these amounts. It’s your action plan. Adhering to it can make managing your savings easy.
Play catch-up.
Take full advantage of Senior citizen savings schemes and other retirement solutions. Max out your contributions if you can. Because this extra contribution will pay off during your retirement. If you are over the age of 60, the contribution can go beyond the limits.
Reduce risk and simplify your finances.
You should have a retirement account, a savings account, and an emergency fund. These accounts don’t just let you set aside a portion of your money to cover qualifying, out-of-pocket expenses but also help on rainy days.Consolidating your investments will also help you reduce fees. In addition, you can also consider switching from risky to more conservative investments.
Downsize or rent
Downsizing can help you save on housing payments, maintenance, cost of living, utility fees, and taxes. Renting to others can also help you trim down these expenses and earn some extra money.
Take advantage of senior discounts.
You can take advantage of senior discounts offered by Restaurants, Travel operators, entrance to events and attractions, etc. You can also seek bargains, discounts, website deals, and coupons. Although these will save you little money, what you save is eventually going to add up over time!
Shop less and share more.
Many times we spend more when we have more. Trimming your lifestyle spending and sharing more can make your savings last longer. You can try shopping just once a week by having a plan and getting just what you need. You can also consider sharing bulk items with a friend or neighbor to take advantage of discounts.
Go down to just one car.
Now that you are retired, your commute is over. Consider selling the extra vehicles you have. You’ll save money on fuel, maintenance, parking, and insurance.
Travel off-peak
Your flexible retirement schedule will allow you to travel mid-week and off-season when you can find better deals on transportation, lodging, and activities. Check multiple sites for low airfares. Sometimes you can also check out destinations within driving range of your town that have an entirely different climate and change of scenery to rejoice and relax.
Sell your, not so-important stuff
Re-evaluate what you need and what you don’t. Sell unneeded valuables online. What you can’t sell, donate, and write off the value on your taxes.
Know more ways to make more out of your retirement savings? Comment below.