One of the most pressing concerns for retirees is having enough money to live worry-free in retirement. A study from the National Institute On Retirement found that 55% of surveyed adults report retirement anxiety over financial security. 73% of participants cite inflation as a key concern.
These statistics prove the value of sound retirement budgeting. This process starts with research, followed by making informed choices. There are several ways to save money; however, don’t underestimate the value of professional expertise.
Learn more about budgeting in retirement to live comfortably during your golden years.
Retirement Planning Tips You Can Do at Home
Start planning for retirement before the onset of those golden years.
Effective retirement budgeting strategies start at home, crossing over into sound retirement planning. Start by creating a household budget for the month. Monthly strategies work best since you typically pay essential bills monthly; you can also break down any annual bills by the month as a saving strategy.
Include the following action items on your household budgeting checklist:
- Monthly grocery budget and dining
- Money for necessities and toiletries
- Monthly cell phone and landline bill
- Internet costs (and cable TV)
- Subscription services
- Pet supplies (if applicable)
- Childcare costs (if applicable)
- Healthcare and insurance
- Transportation (gas, bus, or train fare)
- Rent or mortgage payments
You can automate the bill pay processes for many of these services. This makes the payment process much easier, and you don’t risk making late payments.
Cut costs where you can by applying for discounts or eliminating certain services. For example, more households are “cutting the cord” on cable and opting for monthly subscriptions to Netflix, Disney+, Hulu, and other streaming platforms. These services are typically month-to-month, so you’re not tied to an annual contract.
Look at price points when shopping for groceries. Are you getting the best value for your money? Always take advantage of sales when possible.
Talk to a real estate professional about lowering your mortgage payments and interest rates. This may involve improving your credit score. Refinancing is also available.
Of course, you can always substitute monthly dining for meals at home. Audit your “entertainment” spending to see where you can save. Your life doesn’t have to stop; for example, if you enjoy traveling, look for travel deals (and rewards programs) to save money on flights and lodging.
However, you can still enjoy monthly entertainment outings in a senior living community, all included in the price.
Moving Into a Senior Living Community
The above budgeting tips are an excellent foundation for post-retirement finances. Implement these strategies early so that you’re in a better financial position in your senior years. Sound budgeting also makes the transition into a senior living community much easier.
Senior living communities like The Capstone at Royal Palm simplify your monthly financial responsibilities. Residents don’t have to worry about paying individual bills as utilities are included in the lease price. You don’t have to worry about surprise bills, either.
For your added convenience, you don’t have to worry about monthly food expenses. Your meal plan is included. Residents enjoy prepared breakfast, lunch, and dinner in the community dining hall; snacks are also available.
Senior living suites and apartments also include kitchenettes for light cooking. If you love to cook, remember those sound grocery budgeting practices. Monthly outings to grocery and department stores are scheduled on the monthly calendar; it’s the perfect time to put those budgeting skills to use.
Weekly housekeeping and laundry services are also included in the price.
These services save seniors money on cleaning supplies, appliances, and laundromats. Daily living assistance services are also available for residents who need help with day-to-day routines and hygiene; compare these costs with home care to discover the cost-effectiveness of senior living communities.
Retirement Income and Expenses
Senior financial management includes several variables, from IRA accounts to taxes. Moving into a senior living community is one way to make life easier in these later years. Working with a financial planner experienced in retirement planning is also recommended.
Sit down with family members or a finance professional to organize all your retirement income streams and expenses.
Items may include:
- Income from pension plans
- Social security benefits
- Real estate assets
- Personal property (including appraised valuables)
- Taxable investments, stocks, and bonds
- Retirement accounts with tax advantages (401k and IRAs)
- Insurance annuities
Be careful about real estate. You don’t want the burden of mortgage debt in retirement. However, you can still generate money from investment properties; consider working with a property manager or family member who can help with such responsibilities.
There are professional retirement advisors who specialize in financial planning for seniors.
Like senior living communities, you may find yourself saving even more money through this option. It’s also the financial planner’s job to uncover opportunities for you to save money; a good tax preparer can do this for you, too.
Retirement planning also includes estate planning. It helps to square estate issues away before moving into a senior living community. Estate planning includes developing wills and trusts, otherwise, the estate will land in probate court.
Ideally, you’ll want to handle all retirement financial planning and estate planning before moving to a senior apartment.
Downsizing and Budgeting In Retirement
Many seniors downsize their lives as they near retirement age. Downsizing itself is a budgeting method that can save a considerable amount of money. The most recognizable form of downsizing involves moving from a single-family home into a senior apartment.
This process may involve selling or donating items that may overcrowd a smaller living space. You can also keep appraised valuables in a safe deposit box at a local bank. Some items may be sold at a garage sale or through auction platforms.
Enjoy Financial Security In Your Golden Years
Now is the best time to prepare for peace of mind. Remember the above tips for budgeting in retirement. Get all your financial planning, estate planning, and wealth-building squared away in time for your next milestone, moving into a thriving senior community.
The Capstone at Royal Palms is designed for senior enrichment, leisure, and connection. Our senior living team brings over 25 years of industry experience. The community’s directors of activities, health and wellness, culinary services, and lifestyle are committed to fostering successful senior aging.
Book a tour of our community to discover the promise of Capstone!