Preparing for and moving into retirement can be stressful. The “what ifs” regarding money and money management can leave lingering worries about the future of your retirement finances. According to MSN Money, “In a 2010 Allianz Life Insurance Company poll of 3,257 people ages 44 to 75, 61 percent said they fear running out of money during retirement – more than they fear death.”
Therefore, moving into your golden years with a back up plan or two regarding how to best manager your retirement money may help alleviate some of that stress.
One of my parents is currently making the retirement transition. And in the process, this person has put some backup plans in place just in case retirement funds begin to run low.
Moving closer to family
Moving closer to family and friends can provide additional security in number of areas when it comes to retirement and getting older in general. From others to help out with transportation, home maintenance and repairs, to reducing travel costs and even providing backup living locations if necessary, having those you love close by can be a real lifesaver as well as money saver in retirement. While the relocation costs may be big initially, it could be worth the upfront costs to have the additional security that friends and family can provide in old age.
My pre-retirement parent is reviewing expenses in detail before making the official leap into full-blown retirement. Knowing where to cut and how can be critical not only to understanding what costs will be in retirement and how much you’ll need to cover them, but where to reduce and by how much if necessary when income may be at a premium.
Like myself, my parent has tracked expenses for years. This means that with exception to determining how much things like Medicare and supplemental health insurance will be in retirement, there is an understanding of what the overall retirement cost outlook is. There has also been a push to begin trimming any unnecessary costs – cable package, internet, travel, etc. – before the official move into retirement.
Finding extra income sources
Thankfully, this parent has several options when it comes to additional and backup forms of income in retirement should they be needed. From having garage sales and selling online, to teaching and creating art, there are multiple options that can create not only additional income but provide a sense of accomplishment and productivity in amounts that are at the discretion of the retiree. This means that income is available to the extent that the retiree is willing to work for it, which could be critical should boredom hit, expenses rise, or income fall.
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The author is not a licensed financial professional. This article is for informational purposes only and does not constitute advice of any kind. Any action taken by the reader due to the information provided in this article is solely at the reader’s discretion.