Tips to save money during retirement

We work hard throughout our life so that we can enjoy the retirement years without worrying about where the next meal will come or from where money will come for medicines. Recent Statics show that people are retiring at a younger age and life expectancy is growing. The Average life expectancy of an Indian has increased from 60 years to 75 years. So more number of years to provide post retirement. Even if we have saved adequately a few bad years can bring down your investments. In the recent pandemic many senior citizens income have taken a hit. Cost of living is going up. There is no harm in cutting down a few expenses to maintain a comfortable lifestyle. Here are few expenses you can cut down to save that much extra post retirement :

  • Downsize – your kids have grown up and moved out. If you are staying in a big house there is no harm in downsizing. As cost of maintain a big house is more as that many more hands you need for upkeep of the house. Downsizing helps in huge savings as far as maintenance of the house goes.
  • Selling the extra car – downsizing also means in cars. If kids have moved out no point in keeping that extra car. Right time to sell that extra car saving on fuel as well as maintenance of the car and insurance.
  • Expense Sheet – no harm in maintaining an expense sheet even after retirement. You might be surprised the number of expenses where you can cut down and where the amount has gone up. So accordingly you can readjust your monthly budget.
  • Avoid debt – even if you are planning a second career please do not think of taking debt. In fact try to finish off all your debt before retirement so you can have burden free and peaceful retirement without constantly worrying about paying your EMIs.
  • Make sure medical insurance premium is paid on timeDo not Do not forget to pay your medical premium amount. Even if you don’t wish a big chunk of expense post retirement forms is for your medicines or health related. So make sure your medical insurance premium amount is always paid on time.
  • Deals – everyone is offering deals when it comes to Senior Citizens. Do not shy away to say your real age as that can save you money on Airlines, railways, hotels, many restaurants and other places. Whoever I have spoken with have one goal post retirement to travel. Look out for deals for senior citizens and you will realize your travel will cost will almost come down by almost 25 percent.
  • Reevaluate your insurances – besides medical insurances you can reevaluate your life, home and auto insurances. If you are not sure about your investments then one spouse can continue having life insurance. Home and auto insurance can be downsized along downsizing the house and car.

A person should not reach a stage where he has to think for every penny spent post retirement. Next article will be on what expenses should be taken into account while calculating amount required to stay comfortably post retirement. Stay tuned…..

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