The current economic status can make this time a monetary crunch for everyone, but Home Care Assistance Columbus is here to help you learn some of the simplest ways to reduce your retirement expenses. Taken from the US News & World Report article 21 Ways to Reduce Your Retirement Expenses, consider adhering to some of the following tips to help curb your expenditures.
- Downsize your home: If kids are gone, you don’t need to be in an expensive school district or have extra empty bedrooms. Think about trying a smaller house or condo.
- Ditch a vehicle: No need for a daily commute? Then there may no longer be a need for two cars, which can save money on insurance, gas and maintenance.
- Spend taxable accounts first: Income tax doesn’t need to be paid on 401(k)s or IRAs until the money is withdrawn, while some forms of gains outside retirement accounts are taxed annually. Try to minimize your tax bill by spending money in non-retirement accounts first.
- Sign up for Medicare on time: There is a seven-month period before you turn 65 that you can sign up for the service. By enrolling right away you can evade a Medicare Part B premium increase of 10 percent for each 12-month period of delayed enrollment.
- Find the best prescription drug plan: Every component of a plan can change annually. Compare out-of-pocket costs for necessary medications under every available plan at medicare.gov, since seniors are able to switch plans once a year during the open-enrollment period.
- Exit expensive cities: If you’re no longer tied to that expensive city anymore with your job, then think about ditching it. Retirement money can stretch further in an area with lower taxes, more affordable housing, healthcare facilities and affordable recreation.
- Travel smart: Since the rush tends to be on the weekend and holidays, spend your time wisely investing in trips that are during off-peak seasons and always check for last-minute deals.
Small tweaks, big difference!