The need to save for the future doesn’t end when you retire. Even if you have reached financial freedom and are unlikely to run out of money, there are still reasons to take steps to reduce your retirement expenses and save more for the future. You could live longer than expected or desire to leave something to your children or another worthy cause. Here are a few minor changes that will help you to spend less in retirement without sacrificing your quality of life.
[See 10 Ways to Boost Your Social Security Checks.]
Reevaluate your insurance. Insurance is useful to cover the cost of the worst case scenario. With car insurance, it's to pay for the expenses associated with a potential accident. Life insurance protects your family in case an income producer dies prematurely. And health insurance will chip in for a steep medical bill at the hospital. Whatever your reasons were when you first purchased the insurance, your situation is likely to be different once you are in your retirement years. Yet, many people keep paying the same premiums month after month. In retirement, you are likely to need an updated policy that reflects your age. Remember to take into account how you use your car, the need for life insurance once your children are adults, and your health when adjusting your coverage.
Downsize your monthly services. When folks grow older, they tend to stay in front of the TV for longer periods of time. Non-couch potato activities are extra important for your health in retirement, but if you are going to watch a lot of TV, at least try to get the channels you enjoy at a cheaper rate. Check out special offers from competitors such as these recent promotions of Verizon's FIOS TV or these AT&T UVerse TV coupons. You may be able to save money if you are willing to consider changing the TV service you currently have.
[Visit the U.S. News Retirement site for more planning ideas and advice.]
Streamline your investments. Many investors have calculated the amount they need to save to retire comfortably, but few people consider what happens after retirement. You will still need to compare fees, decide what to sell, rebalance, and pick the right investments well past your retirement date. That's why you need to either simplify your retirement investments or start looking for a financial adviser while you still have the energy to determine whether the person you hired is right for you.
Sell your stuff. As you grow older your friends and family increase in importance, but your possessions may lose some of their value to you. The more you own, the more time you need to spend to maintain your stuff. Decide whether you want to spend your retirement years relaxing with family or maintaining a large house and other expensive possessions.
[See How to Turn Your Retirement Savings into Income.]
Even if you’ve worked hard for decades to save for retirement, you still need to continue to make smart financial decisions throughout your retirement years. Look for ways to cut retirement expenses so that your nest egg will last longer.
David Ning runs MoneyNing, a personal finance site aimed at helping others change their habits for a better financial future. He suggests that everyone to sign up for an online savings account to get more out of our hard earned money.
Reader Comments Read all comments (2)
Theresa Maloney of CA 5:58PM March 11, 2011
stacyore of TX 12:29AM March 10, 2011