As we get older, it is natural to think about financial security – and to worry if we are going to have enough to get us through retirement. Many seniors are retired (or soon to be retired) and looking for ways to save a bit more money, or guarantee that they have the income they need to take care of themselves through their golden years. The good news is, it is never too late – and always a good time – to make, save and invest a little extra money.
Here are some of our top tips designed to give every senior just a bit more financial security.
Retire from Your Job, Not the Workforce: So you’ve retired from your 9 to 5, full time job that you had for years – congratulations! While retirement is an exciting time, many seniors also find that they don’t like feeling idle or unproductive. This is a great time to get a job, one which represents a passion or a hobby you’ve always wanted to explore. Perhaps you can work part-time at the florist, the bowling alley, or the craft store. Pick someplace that you love to visit, and see if you can work for a few hours a week. You’ll keep busy doing something you love, while making a little spare cash on the side. You may even make some great new friends!
Hold off on Social Security: If you are younger than 70 and don’t need the money right away, try to delay beginning your Social Security payments. Many people do not realize this, but from the time you are eligible until the age of 70, your benefits increase 8% annually. If you can afford to wait until that birthday before you receive benefits, your monthly check will be larger.
Consider a Reverse Mortgage: If you own your home outright, you can leverage your equity and turn it into cash – without having to sell or move out. A reverse mortgage is essentially a loan borrowed against the value of your home, and can be paid out in monthly installments, a lump sum payment, or offered in a home equity line of credit, to be used if you need extra cash.
How About a Roommate? Many seniors realize that their home is too big for them at this point in their life, so downsizing is smart. However, if you do not want to sell your home just yet, how about looking for a roommate or two? Having people in the home will generate some income, while also offering companionship and the security of not being alone.
Check Your Budget: When you had a steady income from your career, you may have had memberships to clubs, gone out to eat with friends on a regular basis, or enjoyed long vacations. Less income doesn’t mean you have to stay home and be bored, but there may be some activities that you can cut back in order to save money. That doesn’t mean having less fun – have a pot luck with friends instead of eating out, and schedule a weekly walk on the beach with friends instead of a night at the opera.
Look into Debt Relief Options: If you are retired and you are in debt, it can be difficult to make headway on paying debts while still saving enough for what you will need in the future. Take this opportunity to consult with a financial advisor or credit counselor who can recommend options. They may be able to suggest programs and debt relief options to help you reduce or eliminate debt, saving you thousands in interest over the next several years. – money that can be better used to take care of you in the future.
One of the best things you can do to both save money and improve the quality of your life is stay as healthy as possible. Maintain a healthy diet, keep active, and stay on top of any medical conditions you may have. Being healthy will help you to save money on doctor’s visits, medications and prescriptions, and home health aides.
However, you may find that the expense of living on your own – with any assistance you may have to hire – is becoming too overwhelming. If it is the right time to consider assisted living or memory care for you or a loved one, please call A Banyan Residence in the Villages. Schedule a private tour – we’d love to give you more information about our adult living residences.
