Are you worried about retirement penny pinching that you are going to have to do? Perhaps you did not save enough for retirement. Or suddenly found yourself out of work. Maybe there was an illness that prevents you from working? These are all issues that unfortunately cause many older people to pinch pennies in their retirement. They may have to find another job.Â No one wants to be uncomfortable in retirement. We all want to enjoy the good life after working all of our lives at a job that we may or may not have enjoyed. How do you avoid having to be careful about how much money you spend while retired?
Retirement Penny Pinching
The obvious one is to work longer but not everyone can. Even if you do work longer it never hurts to have a backup plan that will help you if you suddenly find yourself out of work and unable to live the life you always thought that you would. Here are some ideas in addition to working longer.
Reverse mortgages – are advertised a great deal and have the benefit of providing access to the equity you have in your home. It does mean that you will have a mortgage which many people do not like to have after they are retired, but it does provide a source of funds to use while retired. Remember to negotiate the best terms you can and especially a low interest rate
Reduce spending – in non essential areas. Some might consider this penny pinching. But it is also about setting priorities. Spend money on those things you want vs those that are really not needed.
Save more – if you are still working, set aside more money for retirement. The more you save now, the more you will have during your golden years. Remember to invest wisely, conservatively, diversely and seek several opinions before you make your decisions.
Start saving early – for the youngsters that are reading this, begin saving for retirement now. I know it seems like a long way off. But the beauty of compound interest means you will have a large sum sitting their waiting for you when you do retire. If you have a pension, then it is a special bonus providing you with an excellent quality of life in retirement.