Happy Retirement and congratulations! You’ve worked hard all your life and now, it’s time to relax! Perhaps you’ve saved up for this moment. Are you eligible to collect Social Security? Maybe you have a meticulously planned-out portfolio chock-full of investments. Whatever the circumstance, let’s face it: seniors usually live on a fixed income. Subsequently, a little thriftiness can go a long way. A stress-free retirement can be even easier to attain if you follow these 5 tips for inexpensive senior living!
Tip 1: Downsize to create liquid assets or pay off debt.
Downsizing in itself already has plenty of allure. A smaller home can mean less maintenance. And, less maintenance means more time for you.
But, what else is great about downsizing? It’s simple. Selling your home and buying one less expensive can put cash in your pocket. That money can then be used for investing to generate additional retirement cash flow. Alternatively, money from the sale could be used to pay off debt.
Tip 2: Cash in on senior discounts.
Go on, admit it. You had been counting down the days ’til you could clinch that early bird dining deal. But, did you know you can get a senior discount from any one of a number of restaurants? Discounts usually range anywhere from 10 to 20% off. Some places even offer a specialized menu for seniors. Few grocery and retail stores offer senior discounts as well (you just have to ask). Other companies give seniors special deals too. You can find discounts at hotels, cell phone providers, rental car facilities, and even subscription services like Amazon Prime. Businesses like AARP can also provide prescription and health savings to seniors. Many states offer additional senior discount programs through their Department of Aging.
Tip 3: Buy an annuity for guaranteed income.
If you’re feeling concerned about outliving your savings, then an annuity might be the perfect solution. Fundamentally, an annuity is a contract where an individual agrees to pay a provider a sum of money. The provider then invests that money, and in turn, promises a payout to the individual over a period of time (often until the individual passes on). The idea is that this type of investment will stretch your savings. You’re basically hoping the payout surpasses the original amount invested. This can be a great strategy for some, but not for others. It’s important to consult with an expert or financial advisor before making any decisions. Bob Carlson’s Retirement Watch is a good place to start learning about annuities!
Tip 4: Declutter your home.
Whether you’re aging in place or moving to a retirement community, you could probably stand to get rid of some things. Decluttering your home can be an easy beginning to thrifty living!
How?
First, decide what possessions you can part ways with. You’ve lived a long, eventful life, and chances are, you have a lot that’s accumulated over time. Of course, save anything of sentimental value – but, a little purging of unnecessary belongings can lead to less clutter, less cleaning, and more relaxation!
Next, determine which items to donate. If there’s nothing wrong with it, the object doesn’t hold a large monetary value and could benefit someone else, then donate. Charitable donations to qualified organizations can be tax-deductible too.
Next, determine which items can be sold. This is easy – do you have a car you don’t need or a closet full of lightly used designer handbags? Sell the stuff, get the cash, then use your earnings to invest, pay off debt, or simply keep a little extra money on hand.
Finally, determine which items are just garbage. Don’t waste your time on anything you don’t want and others don’t need.
Tip 5: Consider home sharing.
Shared housing is when two or more people share a living space for mutual benefit. Need help cooking and cleaning? Not comfortable driving anymore? Or, could you use a little help paying the utilities? These are all reasons more and more seniors are choosing to home share!
Looking for inexpensive senior living?
For more help and tips, visit our many senior housing directories!
Other thrifty resources:
Administration for Community Living
Bob Carlson’s Retirement Watch
US Department of Housing and Urban Development
