6 Ways to Hack Your Retirement Budget

Retirement

6 Ways to Hack Your Retirement Budget

Posted by Infinite Wealth Advisors, LLC
3 years ago | January 15, 2017

Like most people, you probably have a good idea of how you want to live in retirement. But you might also worry about making the transition to a fixed income. It can be scary to take that leap of faith, but implementing these six steps in the years before your target retirement date, continuing through your early years of retirement, can help you make a smooth transition to your new life.

Delay claiming Social Security. If you can, try to wait until your full retirement age (as defined by Social Security) before you stop working. That way you can reap your full scheduled benefits. And if you can, delay your claim a few more years. For each year that you wait beyond full retirement age, your checks will grow by about 8 percent.

Consider a phased retirement, a part-time job, or starting a your own business in retirement. Rather than making the leap into retirement all at once, consider asking your employer about gradually stepping down your duties. Or, go ahead and retire, but take on a part-time job or start your own side business. You can generate additional income while staying active and social.

Transition into your new budget. Another way to gradually transition into retirement is to start living on your expected budget at some point before you actually retire. That way, you can give your new lifestyle a try, and make any adjustments before you actually stop working.

Plan for healthcare. After housing, healthcare expenses are the largest financial burden faced by retirees. Consider saving money in a health savings account (HSA) now, if you’re eligible for one, because unused funds can be rolled over and used after you retire. Alternately, keep some cash set aside in a savings account for unexpected expenses, and consult with us about different insurance options that can help bridge the budget gap in retirement.

Investigate discounts. Retirees can often save money with senior discounts, but these deals aren’t widely advertised. Ask about price breaks everywhere you go, and keep a record of senior-friendly businesses. You’ll be surprised at how much you can save on travel expenses, entertainment, meals, and even everyday things like haircuts.

Meet with us regularly. Retirement planning involves so much more than saving money. You’ll make complicated decisions about Social Security, retirement plan distributions, income tax planning, and more, and the advice of a professional can make a huge difference. Schedule regular check-ups with us in the years before retirement, so that we can help you continually adjust your plans. Then, after retirement, we can aid you in keeping your finances in order.

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