Cut Costs in Retirement with These Tips

Many seniors who wish to age in place in their own homes find that they have less income during retirement. They may also discover that they have additional expenses such as medications, co-pays for medical appointments, or the need for a part or full-time in-home caregiver. These costs, along with reduced income, can put a financial strain on many seniors.

The following are 5 tips to help seniors cut costs in retirement in Des Plaines. Saving money will be incredibly useful as they adjust to living with less income.

1. Consider Options for Living Arrangements 

Consider all of your options when it comes to your living arrangements. This can help you save money in retirement. 

• Continue Living Mortgage-Free: If you have lived in your current residence for a long time and live mortgage-free, then consider if it's possible to stay there for your retirement years. Not having a mortgage is a great way to save quite a bit of money each month.

• Rent Out a Room in Your Home: If you own a home, you can rent a room out to a friend, family member, or renter to make additional money. This will help cut down on your own living expenses and can help you save a significant amount of money.

• Consider Downsizing: If you have bought a home in recent years and have a higher mortgage payment, consider downsizing to something more budget-friendly. If you have thought about moving to another city to be close to family, now might be the time to kill two birds with one stone.

• Consider Renting a Room: If you’re looking to save money, renting a room with a roommate, friend, or someone else in the same situation can help save both of you money.

• Moving in with Family: Moving in with a family member for a minimal cost or for free can help you save money. Family can also help with daily living needs that you might have as well. Additionally, it’s good for your health to see loved ones. 

1. Consider Where You Live

If you currently live in an expensive location like Los Angeles or New York City, you might find it difficult living on a fixed income. Whether you want to move or not, the harsh reality is that moving to a more affordable location might be the difference between affording retirement or not. Taking a vacation to a new location might help you fall in love with, and find, your new home.

1. Buy Into a 55+ Community with an HOA

Buying into a senior community with an HOA can help cut down costs and provide you with lower-maintenance living. Moreover, many of these associations can provide you with a content insurance policy that will run you about an average of $675 per year versus about $3,000 per year to get insurance independently.

1. Reconsider Your Transportation

Most seniors who still drive need a reliable and safe car to get them to places, such as the grocery store or doctor's appointments. There is nothing wrong with having a nice car, but consider downsizing your fleet to one car. You can also consider a modest car payment or keep a car that is paid off (if possible) to cut costs in retirement.

1. Cancel Unneeded Insurance Policies

If you have unnecessary insurance policies that you never bothered to cancel, now is the time to do so. For example, life insurance policies are to be used to replace household income. You are past the point in your life where you would need a life insurance policy on your income. Having one less monthly expense (the premium on the plan) is extremely helpful to cut costs in retirement.

These are just a few ways that you can help cut costs in retirement years. Making smart choices now can help you live more comfortably in your retirement years. Also, living within your means can help create a less stressful lifestyle where you don't have to worry about financial concerns as you age in place. 

Moreover, if you can easily afford your retirement lifestyle, you can age in place with assistance from family or a caregiver without sacrificing the quality of life that you are living. Living a life that you can afford can help you live your later years with the dignity that you deserve.

If you or someone you love needs retirement assistance in the Des Plaines area, Senior Helpers of Des Plaines can help. Contact us today to learn more about our program and our specific senior care services.