When you retire, depending on the retirement plan you put in place, you may find yourself with less disposable income than you once had. While this is not an issue for some people, many of us need to find ways to cut our spending when we retire, and here we offer you some tips on how to do so!
Pay off your mortgage
As with any loan, you pay a significant amount of interest on your mortgage, meaning that you effectively lose more money than necessary. If you have enough savings to pay off your mortgage without being completely broke afterward, you might want to consider doing so. Not only will you no longer have any monthly mortgage payments leaving your account – you’ll have a load off your mind as you relax in your property and know that you own it… fully.
Downsize your house
If you have kids and they have since moved out of your home, chances are that you have a multi-bedroom home of a decent size which is designed to accommodate a family. If, however, there is now only 1 or 2 parents living in the multi-bedroom home, it could be costing you too much in maintenance and upkeep for essentially no good reason. Moving to a smaller house could not only reduce your maintenance costs, it may allow you to make a profit from the sales (assuming the smaller house is cheaper), which could nicely bump up your retirement fund.
Travel off-peak
Lots of people travel during their retirement, and who can blame them? However, if you are going to travel around, be sure to do it off-peak. As a retiree, you have the freedom to go on vacation whenever it suits you, meaning you can travel at the times of year when the costs are down because the vast majority of people are busy working or taking their kids to school.
Move to a lower-cost area
If you want to keep a similarly-sized house but move to a cheaper area, consider moving further away from metropolitan areas and into cheaper suburbs. You may even decide to move cities or states altogether, opting for a part of the country where your existing money will travel much further than it does now.
If you’re looking to retire soon, you’re probably thinking about your insurance and financial planning. Why not speak to one of our insurance advisors and see what they could do for you today?
