Quite a lot of old folks aren’t really living comfortably these days. Retirement should be a phase for “living the rest of your days in relative comfort” but poor financial planning on the part of many would have them struggle come retirement. Now, if you happen to have been one of the better prepared folks who have a retirement fund, a question that can bug you is “will it be enough?”
The conventional wisdom is to have 80% of your yearly income for each year to maintain the same lifestyle but financial planners are now claiming that you just might need 100% after all. Never mind if you do have less of the “usual” stuff to spend on like commute expenses, dry cleaning or lunch money. Here are ways to make sure your nest egg will be enough until you move on to a better place.
Get rid of credit cards. The thing with credit is that it’s spending that you do against future income. As a retiree, you don’t have a full time job to bet a credit against. While you might have a form of in come in the guise of interest in your investments or a pension, these aren’t as large as your usual income. Save on retirement fees and haggle for discounts on cash payments.
Stick to just one car. While retirement shouldn’t limit your mobility, it doesn’t make much sense to keep two or three cars in the garage. Yearly depreciation and insurance costs can milk your nest egg dry.
Stop bailing out kids. By the time you retire, you could sure hope that the kids have already moved out of the house. If your kid’s a moocher, stop coddling the behavior. There are other ways you’d be able to support them without having to sacrifice your own stability.
Maximize senior citizen discounts. Being an old fogie has its incentives too, aside from boy scouts offering to help you cross the street. Many establishments offer discounts to senior citizens. Being older also allows you a better bargaining position when haggling so cut those prices even more just with a bit of grey hair and diplomacy.
Find a new place with cheaper cost of living. If the big reason you moved into the city is because of its proximity to your work, there’s no need to keep on dealing with the stress and cost of city life. Find a better and more peaceful locale with a lower cost of living. You might not be able to sell as high in this economy but there’s a lot of good real estate in great places that can be had for cheap as well.
Grow a garden. There is something zen about gardening and physical activity is good for your health. Grow your own veggies and enjoy fresh produce at home and cut your spending on those overpriced “organic” stuff they try to sell to you at the grocery.
Do your own housework. Oh, and now that you have more time at home, you can do your own housework. You can also do the basic maintenance at home as well.
