Saving Money in Retirement
Retirement is an exciting time, full of new adventures. There are new places to travel, new hobbies to explore and more time for friends and family. However, for some people, retirement also brings new challenges and concerns. One of the top concerns for retirees is financial security. No matter where you live or how much you have saved, financial concerns can still feel intimidating when you retire. Americans of and approaching retirement age report their top financial worries include:
- Inability to manage finances.
- Running out of money.
- High health care costs.
- Children moving back home.
- Taking Social Security too early.
- Too much debt.
- Stock market crashes.
- Increasing inflation.
While these events can seem frightening, early planning and laying financial groundwork can help create a smooth transition into retirement or moving into a senior living community. At The Atriums Senior Living Community there are personalized and luxurious amenities designed to help seniors maintain their standard of living while keeping their budget steady.
If you or a loved one are starting your financial planning for retirement, it is helpful to learn some tips for saving money in retirement, while preparing to live a lifestyle that meets your needs.
How Do You Cut Costs in Retirement?
Financial experts advise people approaching retirement to have at least 80 percent of your pre-retirement income in order to sustain your current lifestyle. According to 2018 data, the average Social Security benefit for retired Americans was $1,409.91 per month. This means, if you need more than that amount to pay for your lifestyle, you will need to build your retirement savings on your own. If you haven’t quite saved enough, there are still plenty of options to make up the shortfall. So, how do you cut costs in retirement? Here are a few ideas to help reduce your monthly spend:
- Downsize or move to a lower-cost area.
- Sell your vehicle and find cost-effective transportation.
- Shop around for lower-cost products and services.
- Take advantage of senior discounts.
- Consult a tax planner, financial planner or insurance consultant to get on track.
- Pay off your mortgage.
Want to know if your retirement savings are on track? Check out the AARP Retirement Calculator and find out.
How to Save Money After Retirement
As you enjoy your retirement, there are still plenty of ways to keep your money on track. Here are seven ideas for how to save money after retirement:
- Reduce Your Fixed Expenses
In order to stretch your dollars further, it is important to minimize the must-have expenses each month. Take a look at your lifestyle, your wants and your needs and make adjustments. Moving into a senior living community with many amenities provided, like Carnegie Village Senior Living Community, is a good way to control monthly spending.
- Follow a Retirement Spending Plan
Adhering to a budget may not sound like fun, but you can always plan for your budget to include items like entertainment and travel. Setting a monthly budget is easy in a place like The Atriums, where the rental-style monthly payments are simple to add to your budget. If you put a spending plan in place early, you will be able to work and save to achieve that financial goal ahead of time. And do not forget to account for inflation!
- Pay Attention to Tax Planning
Tax planning is important every year, even after retirement. After you are no longer working, effective tax planning can help you make the right decisions about what account to pull money from, how to manage minimum distributions and Social Security taxation.
- Maximize Social Security Benefits
The longer you live, the further your money needs to stretch after retirement. Social Security is a benefit that you cannot outlive, so it is best to make it work for you. The earlier you take the benefit, the more reduced your monthly payment. It pays to wait as long as possible!
- Make Healthy Choices
Many chronic health conditions are preventable with a healthy lifestyle. Being sick can be very expensive and it is well worth it to make lifestyle adjustments where you can. At Carnegie Village, residents enjoy access to fitness and yoga studios, healthy on-site dining and physical and occupational therapists – all with the goal of helping residents stay strong and healthy!
- Consider Long-Term Care Insurance
A long-term care insurance policy will help to cover the costs of care for disabilities, memory disorders, chronic medical conditions and other issues that impact your daily life. Many policies will also reimburse you if you receive care in places like an assisted living facility, an adult day care center, in your home or at a nursing home. You will not qualify for a long-term care policy if you already have a chronic condition, so these policies are best purchased early.
- Work a Little Longer
For many Americans, working even one year longer can greatly improve your standard of living in retirement. This is why it is so important to have a clear understanding of your finances and your financial goals for retirement prior to leaving the workforce.
Planning for the Future
At Tutera Senior Living & Health Care, we understand that retirement is both exciting and intimidating. We want to help ease your concerns and support you as you create a lifestyle you love. From fitness programs to outings and live entertainment, to social occasions and specialty dining, all of our senior communities have lots of choices for you to fill your days. Our affordable, easy, month-to-month lease option provides you with both flexibility and value.
Learn more by clicking on the community links below:
The Atriums Senior Living Community
Carnegie Village Senior Living Community
Mission Chateau Senior Living Community
Moweaqua Rehabilitation & Health Care Center
St. Paul's Senior Community
Tiffany Springs Senior Living Community
Victory Hills Senior Living Community