If there’s one thing we know about the cost of living, it’s that it doesn’t go down.
Living expenses are constantly on the rise, while retirement income typically is not. That’s why we want to devote this week’s blog post to some ways you can get more money in retirement.
1. Wait on claiming your Social Security
The amount of money you get from Social Security depends on how old you are when you claim benefits. The earliest you can claim is age 62, or you can wait until you hit 70. The longer you wait, the more you can collect, and the earlier you collect, the lower your benefits.
If you have a post-retirement job or have saved up enough money to provide for your cost of living, waiting until 70 to access Social Security is an easy way to get more money in retirement.
2. Cut your spending
Take a good look at your monthly budget. You might find some places where you can make cuts, whether it’s something as simple as bringing lunch to work instead of buying it, or more complex measures like renegotiating your car insurance rates.
3. Consider working part-time
Just because you’ve retired doesn’t mean your working days have to come to an end. Picking up some part-time work can help put some extra cash in your pockets.
Besides, work helps you stay active and connected to other people. It can also help you save money: After all, when you’re at work, you’re not spending money.
4. Rent out some space
If you can handle becoming a landlord, renting out space can offer an excellent source of revenue. It might mean turning part of your home into an apartment or choosing to rent out your old home if you decide to downsize and move into a new space.
And if you’re feeling ambitious, you can widen your scope. Some retirees even acquire other rental properties to help fund their golden years.
Like we indicated above, you can get more money in retirement by merely downsizing your living arrangements. Now that your kids are grown up and have moved out, you probably don’t need as much space as you did 20 years ago.
You might be able to move to a less expensive school district and save money on some of the ongoing costs that come with homeownership such as maintenance and utilities.
6. Be careful with the “four percent rule”
The four percent rule says that the average American – who retires with around $210,000 in net worth can expect to spend $8,400 – or 4 percent of their net worth –each year, with spending rising with the rate of inflation each year.
We should note that there are issues with this rule. First of all, it was created more than 20 years ago, when interest rates were higher and life expectancies were shorter.
The rule also assumed you’d need money to cover 30 years of retirement, but if you know your retirement will be shorter, you can spend more than 4 percent.
Retirement and aging in place
If you’re like most seniors, you hope to “age in place,” or spend your retirement years at home as opposed to a nursing or independent living facility.
Pennsylvania Stairlifts can help. We carry a complete line of top-quality electric stair lifts that allow you to get full use out of your home even after the stairs become too much to manage. Contact us today to learn how we can make your retirement years even more comfortable.