You have worked hard for most of your adult life and the day has come that you will retire and enjoy the freedom of your golden years. You might take up a hobby, volunteer, or just enjoy working in your garden and socializing with your friends.
If you have been planning ahead and contributing to your retirement fund, you will likely have a nest egg built up which will help you support yourself once you leave your job. You also may have built up a large amount of savings, or equity, in your home. There are some really good strategies to release this equity to support your retirement while staying in your home.
However, it is important to keep your expenses down when you are retired so that your spending won’t outgrow your savings. If you can reduce your outgoing costs during your retirement years, you can stretch out your savings fund for longer and not have to worry about running out of money. Here are a few ways that you can reduce your expenses during your retirement:
Downsize Your Home
Now that your children are grown up and have homes of their own, do you really need a large three bedroom house? Most retirees find that it is advantageous to sell their property and downsize to a smaller and less expensive house or a condo. This will free up a large chunk of your equity, as well as reducing your living expenses such as heating, electricity and property taxes.
You may also want to consider an equity release program if you’d like to stay in your home while accessing your built-up equity in order to supplement your retirement income.
Take Care of Yourself
Health care related costs are one of the biggest expenses in retirement and you cannot completely avoid the eventual health problems which will arise as you grow older. However, there are many ways that you can reduce your health problems by taking care of your body and maintaining your health as much as possible. Get at least 30 minutes of physical activity every day, drink plenty of water, eat fruits and vegetables and whole foods and get a good sleep every night. To avoid stress, do things which relax you such as enjoying favorite hobbies and spending time with friends. The more you take care of your body, the less likely you are to develop serious and expensive health problems in your old age.
Get Rid of One Vehicle
While most working couples will have two vehicles to get them to their respective offices, when they retire they will not need this anymore. Sell one of your vehicles and simply share the one. This will give you some cash right away, as well as cutting your insurance and car maintenance bills.
These are just a few ways that you can reduce your expenses during your retirement years and enjoy the good life for less!