If you’re like most people, you often worry about someday living on a fixed income in retirement. Early and regular planning can help you address many of those worries, by helping you to establish a dependable savings for the future. There are also many insurance options which can help you manage expenses once you retire. But if you’re still worried about your future income and lifestyle, you might be relieved to know that there are many ways in which you will save money once you retire. Hopefully, this knowledge will help to ease your worries about the future.
Taxes. Once you stop working, you won’t be paying Social Security and Medicare taxes anymore. Plus, your income taxes will probably also be lower, because taxpayers age 65 and older can claim a higher standard exemption.
Work expenses. It can actually cost quite a lot of money to maintain a professional life. Once you stop working, you won’t have to spend nearly as much money on items like work clothes, and incidental expenses such as gifts for coworkers and potluck lunch items will be a thing of the past. You might be surprised how these items add up.
No more commuting. Right now, you might be paying tolls and parking fees. Plus there is the obvious expense of gas and higher maintenance on your vehicle. When you no longer have to commute each day, you’ll be saving quite a chunk of change.
Your car. In fact, now that you no longer commute, you and your spouse can probably share a vehicle. Imagine life with only one car payment!
Insurance. Now that you’re driving so much less, you will probably save on car insurance, too. This is especially true if you and your spouse share a car.
Even recreation is cheaper. Retirees can gain admission to all national parks for a low annual fee of only ten dollars, and you’ll discover hidden discounts on things like fishing licenses and movie tickets as well.
Eating out. Now that you’re no longer commuting five days per week, you won’t be eating expensive restaurant lunches anymore. Plus, when you do eat out, you can take advantage of senior discounts offered by many restaurants.
Chores. During your working years, you have little spare time for many household chores such as cleaning, gardening, and simple repairs. Now that you’re retired, you might be able to take on some of those chores yourself, saving a lot of money on professional services.
Travel. Once you’re retired, you will make your own schedule. You can take advantage of last-minute travel deals, or travel in the off season to save money. Plus, most popular destinations are less crowded and much more fun during these times!
You won’t be saving for retirement anymore. Right now, a sizeable chunk of your paycheck goes to retirement plan contributions – up to $24,000 per year. It seems obvious, but many people forget that once they retire, they won’t be saving for retirement anymore.
Hopefully, looking over this list helped you feel more confident about your future lifestyle in retirement. But if you’re still worried about establishing a stream of income, give us a call. We can help you weigh all of your options and work toward a more secure future.