You finally reached retirement & now are faced with managing your finances after experiencing the worst financial crisis in decades. In addition, the financial planning you did 5 to 10 years ago no longer makes sense since today the average 65 year old can expect to live to almost 84 vs. a life expectancy of 77.9 in 2007 (CDC Aug ‘09). Suddenly, you are forced to make significant lifestyle changes to support yourself & family well into the future. And, for those that aren’t at retirement yet, you’re not off the hook. The 65 year old plus population is expected to grow from 40M today to 71M or 20% of the population in 2030 (US Census Bureau June ‘09). In essence, this means that on average you are going to be living much past 84. So with all of this data, what can we do to live the retirement life we once envisioned? It starts with cutting out expenses.
Time to Move (Savings: $10,000+)
Before you even start analyzing your budget, seriously consider moving to a lower cost location. Moving from a city such as New York to a more affordable location like Fort Lauderdale, Florida can save you tens of thousands now & into the hundreds of thousands into the future. Here’s an example – if your income was $50,000 a year in New York City and you moved to Fort Lauderdale, your standard of living would NOT change if your income was 47.34% less or $26,330 in Fort Lauderdale. This is just one example – you can go to bankrate.com to check out another city.
Cut Out High Maintenance Items (Savings: $1,000+)
Sometimes we don’t realize it, but having an extra car can really be an unnecessary expense. You would be cutting out the high gas costs of $2.50 to $3.25 per gallon, toll fees, and then yearly maintenance charges.
Get Rid of High Fee Investment Products (Savings: Depends)
Scope your portfolio and look at the fee structure for the investments you made with your retirement savings. A lot of investment products carry high administrative/management fees which can be avoided by shift to lower fee Mutual Funds & CDs.
Limit Credit Card Spending (Savings: $100-$1,000+)
What made sense financially such as building your credit profile when you were in your 20s, 30s & 40s doesn’t make sense now that you are in your 60s & older. Credit cards are just for convenience and they come with high interest charges (i.e. 15-20%).
Become More Budget Conscious (Savings: $100-$1,000)
Eat out less, shop at local markets, use Public Transportation & use both online and offline coupons as much as possible. Before, you make a purchase always scan through coupons.
More Retirement Planning Questions?
If so, our Finance Experts are happy to help answer all of your retirement planning questions.
Related Articles
->Don’t Opt-In to Overdraft Protection
->Buying A Lottery Ticket Is Like Lighting Money on Fire…Maybe Not
->The Truth About Credit Life Insurance
->Unusual Credit Card Fees & Important Credit Tips
->5 Financial Areas to Review with your Spouse
->Focusing on Investing Can Distract You From Saving
->Selecting the Right Foods to Eat…I Mean, DEBT to Pay Off!
->Can I Withdraw From a SEP-IRA or Tax Deferred Annuity?
->Wondering if a Guaranteed Income Annuity is Right for You?
->Whether You’re Rich or Poor, 2010 is Important for IRA Tax Planning
->Summer Travel Spending: Cutting the Costs
