Everyone wants to live well in retirement. Let this advice from Quality Care of Howell help you make the most of your retirement budget.
Is penny pinching stopping you from enjoying your golden years? It’s smart to be frugal in retirement, but some older adults are taking it to the extreme, withdrawing less from retirement accounts than those accounts return each year.
By sitting on their nest egg instead of spending it, those retirees are missing out on what makes the golden years great.
That’s not to say you should drain your 401(k) and jet-set around the world! However, some things are worth splurging on in retirement. Here’s how you can use your nest egg to live better while staying financially secure for retirement.
Save Money Where It Counts
Before dipping into retirement accounts, examine your spending to see where you can stretch your dollars. By saving money on everyday expenses, you free up funds for more exciting pursuits.
Healthcare: Does your healthcare plan have high out-of-pocket expenses? Medicare coverage better suited to your healthcare needs reduces unexpected healthcare costs.
Transportation: Are you paying high bills for a car you barely drive? Swapping a personal vehicle for public transportation or purchasing a reliable older vehicle saves money on transportation expenses.
Housing: Housing is the biggest expense in most seniors’ budgets. You can save money here too, either by getting a roommate or moving to a senior living community with all expenses included.
These changes shave a lot off your monthly spending. Seniors should also take advantage of smaller savings that add up. Whether it’s taking advantage of senior and veterans discounts or joining a discount club like AARP, saving money on routine purchases is so easy, it would be silly not to do it!
4 Things That Are Worth Seniors’ Money
Should the average senior buy sports cars and designer clothes in retirement? Probably not. However, some things are worth spending money on when you’re older. Here are four things that can greatly improve your quality of life without costing a lot.
Exercise
Staying active does more than keep you trim. An active lifestyle promotes independence and good health in the golden years — two things that save money and make life a lot more fun!
The SilverSneakers program helps seniors save money on gym memberships using their Medicare plan. If you don’t have SilverSneakers, take advantage of low-cost gyms like Planet Fitness or your local YMCA. Not sure where to start on your fitness journey? Fitness apps offer an affordable and accessible alternative to a personal trainer.
Hobbies
Older adults spend a quarter of their day watching TV. Not only is that much sedentary time bad for seniors’ health, but watching TV is linked to lower life satisfaction.
Hobbies offer a more productive way for seniors to pass the time. Not only are hobbies fun, but they keep seniors active and social too! If you need supplies or equipment for your hobby, look for secondhand supplies to save money compared to new.
Lifelong Learning
You’re never too old to learn new things. In fact, learning strengthens seniors’ memory and may even fight Alzheimer’s disease. If high tuition prices have scared you away from college courses, use free online courses to learn or contact your local university or community college about auditing college classes for free. Some colleges even waive tuition for older adults!
Technology
One skill seniors ought to learn is technology. There are lots of great tech that can improve older adults’ lives, from smartwatches that track your sleep to video chat devices that make it easy to keep in touch with friends and family.
High-tech gadgets tend to come with a high price tag, but seniors can save by searching for discounts online or waiting until Black Friday, back-to-school shopping, and other major sales events.
It’s important to be smart with your money while living on a fixed income. However, frugality shouldn’t come at the sake of seniors’ well-being. Make sure you’re investing in yourself during retirement so you can enjoy the golden years the way you’re meant to.
- Jim McKinley