When you retire, it can be hard to generate extra income. However, if you can lower your spending, you won’t need to dip into your retirement funds as much. Money Talks News’ recent article entitled “7 Unusual Ways to Cut the Cost of Living in Retirement” gives us some atypical ways to lower your expenses in retirement:
- Move in with the children. Children these days often live at home until they’re in their 20s. They can return the favor by letting their retired parents live with them after they’ve formed their own households. However, prior to moving in with Junior, make sure that you reach an agreement about whether you’ll help out with household expenses.
- Rent out a room in your home. If you have empty bedrooms in your house because your children have grown up and moved away, consider renting one out. Companies such as Roommates4Boomers and Silvernest help seniors rent out extra space in their homes or find an older roommate with whom to reside. However, being a landlord requires some effort. You’ll need to screen tenants, collect damage deposits and collect the rent, unless you use a company that handles that for you.
- Get your green thumb going. You can max out your savings if you grow vegetables that can be easily stored or preserved, such as potatoes, onions and winter squash. Beans, tomatoes, cucumbers, beets and sweet corn can be preserved by freezing or canning.
- Downsize your fleet. When you retire, you may be able to share a single vehicle with your spouse. That would eliminate the expenses associated with owning and operating a second car. Transportation-related costs are the second-largest type of expense for the average household led by someone who is 65 or older, after housing.
- Drop unhealthy habits. You can reduce your medical costs in retirement, if you make a greater effort to stay healthy. One way to do this is to avoid unhealthy habits, such as smoking or drinking alcohol to excess.
- Canceling your life insurance. The purpose of life insurance is to replace the income of household earners, providing for dependents in the event of a breadwinner’s untimely death. However, when you’re retired, odds are that your kids are grown and supporting themselves. If you no longer have dependents, the money you’re spending on life insurance might be better spent on your daily needs.
- Plan to age in place. If you take action now to make your home safe and accessible as you age, you may increase your chances of staying in your home longer. If you’re able to “age in place,” rather than moving into an assisted-living facility or nursing home, you’ll likely also save money.
Reference: Money Talks News (Sep. 3, 2021) “7 Unusual Ways to Cut the Cost of Living in Retirement”
Suggested Key Terms: Elder Care