Many people look forward to retirement but when the anticipated moment arrives they become filled with anxiety as they find it difficult to sustain their usual standard of living due to improper planning. While that is not pleasant, you can reduce your retirement expenses…
Start off by learning how to maintain a strict budget (register for our free budget planner ), especially as you now have more time on your hands, there will be more opportunity and temptation to splurge. The pointers below, can help you cut your expenses significantly and saw off some of the financial burn from retirement.
Consider downsizing your assets
By now your kids have left home and you therefore no longer need a three or four bedroom home. Rather consider downsizing to a smaller home, a modern lock-up-and-go apartment with an aesthetic riddled view or perhaps a larger property outside of the over-price areas – which may end up being more cost-effective in the long run. On that note, why not sell or downsize on one of your vehicles too? You will also reduce the other costs involved in owning a second vehicle, such as insurance and petrol costs.
As a pensioner, you have the option of travelling during off-peak seasons, mid-week or even taking advantage of last-minute deals. You can save a fortune on both accommodation and flights by utilising certain deals.
Ask for pensioner discounts
One of the greatest perks of getting older is qualifying for pensioner discounts. In this regard, there is a great organisation called SAARP (for more information check out their website). They offer a wide variety of senior discounts all focussed on enhancing the lives of retirees. They also negotiate discounts on behalf of their members.
Cut unnecessary expenses
Unless you are an avid TV watcher, you may want to explore the various contracts available through DSTV or Top TV. Consider a downgrade in your channel package. Use Skype or one of the other free call programmes available, especially if you have family or relatives living overseas. Alternatively, Blackberry has developed a free call system which can now be used on any Android phones.
Resist over-spending on your grandchildren
It’s often difficult to resist buying expensive toys or top-of-the-line stroller. Instead, offer your baby-sitting services. You’ll get to know your grandchildren better, and the parents will appreciate having some time to themselves.
Entertainment for less
Many restaurants and entertainment venues offer pensioner’s discounts. Do a bit of research into where and which restaurants are the most accommodating. Home-cooked meals usually taste better and are more budget friendly than convenience food. Invite a few friends over and make preparing a meal together part of the evening’s entertainment.
This article was adapted for Smart Money and was taken from: https://money101.co.za/reduce-retirement-expenses/