5 Secrets to Making Your Savings Last Longer in Retirement
The thought of retirement can be scary. Not only are you consciously leaving behind the routine consistency you’ve had for upwards of 30 years, but you also lose some financial stability.
Saying goodbye to your income can be daunting and emotional. However, there are a few good ways to make your savings last longer in retirement. I would like to share my top six tips.
Although the instinct upon retirement might be to travel as far and wide as possible, plan and spread your trips out. Your savings have to last you a fairly long time, so it’s important to prepare wisely. Instead of heading straight overseas and not coming back, think about having more of a gentle break. You could also spend time with your family or travel domestically to keep costs low.
If you no longer have kids or pets at home, a move might be a good step to recoup some extra funds. As scary as it is, if you own property, downsizing could be extremely positive for your savings. If you think your bank account might be in need of an extra push, consider selling to boost your retirement savings significantly, which brings me to my next point.
Take the Plunge and Switch Banks
Loyalty to your bank could be holding you back. In fact, many people miss out on opportunities to lower fees or get a better deal because they don’t understand the process of switching banks, or haven’t considered it. Instead of missing out, compare high-interest savings accounts online through a financial comparison website. This should give you a good idea of whether you could be earning more interest on your hard-earned savings.
Review Your Spending
Often, we continue to pay for things out of habit and don’t consider revaluating our finances. Take a closer look at your regular bills and payments such as your insurance, mortgage, and other accounts or subscriptions such as your gym membership. Reviewing your health insurance policy, for example, can ensure you aren’t paying for extras such as pregnancy coverage.
Consider cutting down some of the things you have around the house. Not only will it clear out your space, but you could earn some extra income in the process, which could be useful. Instead of throwing things out, you could sell appliances, lawn mowers for example, or other things online. A bit of spare cash never goes astray, and there are many ways you can make money on the side.
Take Advantage of Concession Prices
Public transport and certain sights almost always have concession prices that are significantly lower than the price of a general ticket. If you do take the train or bus regularly, a senior’s concession card would probably be worthwhile for you, and should give you tickets that are around half price. Other places you can receive concession prices include museums, zoos, aquariums and libraries.
Although it may be daunting considering your retirement, it shouldn’t be as scary as it seems! It’s a big lifestyle change so it’s important to make sure you adapt your routine to accommodate for it. Good luck, and enjoy.
Are you scared of retirement? What advise would you give to your Sixty and Me sisters if you already retired? Please share your thoughts!