Irrespective of whether you just started your career, or you’re done with it, there are still chances of enhancing your nest egg. With retirement planning, the sooner you start saving, the better off could be your retirement life, thanks to the compound interest rules. And even though you started saving late or you’ve not started saving, you’re not alone.
However, your journey of saving money doesn’t stop with your retirement. With pension payments becoming uncertain, superannuation is gradually becoming a key source of income. The SMSF offers a high degree of autonomy on how you wish to invest your money and build your retirement account.
As per reports from Northwestern Mutual, 25% of Americans don’t have any retirement savings, no retirement fund, or no pension. Here are few things to know about saving your dollars post retirement.
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It is never too late to save – Quick tips for retirees to save money
Did you just retire and realize that you’ve not saved enough? No worries! Here are some quick tips you may consider.
Look for a source of income
No, it is certainly not possible to get back to your previous work position from which you retired but there are still other work opportunities available. If you’ve been a creative and innovative soul, start selling your creations online. You may also look for short-term work assignments and commit to saving a portion of what you make.
Get a reverse mortgage if you’re rich on equity
Do you own a home and have equity? If yes, that’s the best-case scenario for taking out a reverse mortgage. This is a loan that is given against your home equity or the value of your home. You obtain funds either as a line of credit or lump sum or fixed monthly installments. The proceeds of the reverse mortgage can be used for other purposes.
Procrastinate withdrawing your Social Security
For all the people who were born in 1943 or after that, there’s a technique through which you can obtain more Social Security payments. After reaching your age of retirement, for every year you delay withdrawing the benefits, the benefits boost by 8% till you reach the age of 70. So, by delaying drawing your SS benefits, you automatically accumulate more money.
Look for SS payments for married couples
If you still require withdrawing your SS benefits and you’re married, you still have a chance to increase your savings. The higher earner, among the two of you, should delay claiming any benefit and call off paying contributions. The spouse that earns lesser may claim the spousal payments. This trick leads to savings while also enjoying the benefits at the same time.
Cut down your expenses and lifestyle
Keep a tab on your expenses over the last few months. Recognize your expenses that can do without. Is there a magazine membership that you don’t need any more? Can you cook your own meals at home and cut off your night-outs? Maintain a diary to keep a track of what comes in and what you spend. Find out ways to save money by putting an end to impulsive buys.
Search for public benefits
Did you know that the National Council on Aging maintains a website where you can check up for your benefits? This is a site that lets you check out public programs through which you can decrease your expenses. There are benefits that you’re eligible for like transportation, care assistance, health care, and medical assistance.
Therefore, it is always a wise option to maximize what you already have. Follow the steps given above to stay on top of your financial health.