U.S. inflation, which is at a 40-year high of 8.6 percent, has caused many retirees to feel the pinch by pushing up the price of just about every item, including gas, food, cars and travel.
A survey of retirees found that more than half of those surveyed cited inflation as the top financial worry keeping them up at night. This trumps other key issues such as medical costs and medical expenses.
Fewer people are saving for retirement as inflation heats up; only 63 percent of non-retirees are currently saving for retirement, as opposed to 93 percent before the pandemic. Surprisingly, boomers are the second-largest group not saving for retirement, a mere 38% are actively saving, as opposed to 44% of Gen-Z.
How Much Money Do You Need To Save For Retirement?
According to the IRS, the average retiree receives just under $1,200 per month in Social Security benefits. That’s not nearly enough for a stable retirement.
Experts say retirees can expect to spend up to 80 percent of their salary during retirement. For example, if you currently make $75,000, you can roughly estimate you’ll need at least $60,000 a year to live on once you leave the workforce.
However, a report found that only half of Americans have the recommended savings. The median amount Americans have saved for retirement is just $71,500. 27% of Americans only have less than $50,000 savings for retirement. 16% of Americans have no retirement savings at all.
Tips To Help You Save Money After Retirement
Since most Americans are not saving enough for their retirement, saving money during retirement is vital in their later years. Here are some tips to help retirees become thrifty.
Get Help From Financial Advisors
The only way to keep your money growing is to have a smart plan in place. The advice of professional financial planners and insurance advisers can help you reduce costs. Experts can help you set goals, stay on track and protect your assets. The only thing you need to do is find a trusted counselor. Don’t be afraid to ask for help.
Find a Part-time Job
It’s not easy for retired workers to return to full-time work or the workforce. However, there are still plenty of part-time jobs available for skilled and experienced retired workers in retail or hospitality. You can even make some money from streaming platforms or social media if you are willing to share some of your experiences with a younger audience.
Cook Meals at Home
Since you are not required to rush your meals, you can dedicate your time to becoming a brilliant cook. The rising price of almost everything, but especially food, makes cooking a cost-effective and enjoyable pastime to pursue. Cooking meals at home is definitely cheaper than going out to eat at restaurants. If you are an expert at making coffee at home, you can save a lot since you won’t need to order at Starbucks anymore.
Rent Out Your Spare Rooms or Garage
If you really treasure your house and don’t want to sell it, you can get some extra money by renting out the empty spaces in your home, parking spots, or garage. It’s easy to post your services online and find a qualified tenant with the help of some popular sites like Airbnb, VRBO, and JustPark. You can also choose short-term rentals for these empty spaces in case your kids come back for the holidays.
Downsize to a Smaller Space
If sharing your living space with strangers is not an option, you can cut costs by moving to a smaller house. Giving up your longtime home is hard, however, downsizing to a smaller home is an opportunity to save on home maintenance, repair costs, utility fees and taxes. Furthermore, you don’t need to worry about your mortgage anymore, and you can sell the old furniture to bring in extra money.
Take Advantage of the Senior Discounts
Don’t forget the privileges of getting old. Take advantage of senior discounts when you go to restaurants, tourist venues, clothing stores, hotels and movie theaters. Financial expert Charlie Waters from CouponBirds suggests remembering to ask for senior discounts, as some discounts will not be widely advertised in some places. These discounts will definitely make your retirement more affordable.
Delay Social Security Payments For as Long as You Can
There’s a strategy for you to get more social security. If you start your retirement at age 66 or 67, you can get 100% social security benefits. However, if you delay taking out benefits after you reach retirement age, you can receive more benefits. For every year you delay taking out the benefits, you will get an 8% increase in your benefits until you are 70. Saving more money is easy when you delay your Social Security Payments.
Sell Your Extra Items
Spending some time sorting all your items at home, you can discover stuff that has been abandoned or useless for a long time. Some of these items may still be in good condition and can be sold for a good price. Not only can those extra items can be sold, but so can an extra car. Many retired workers don’t need two cars, and selling the second vehicle can bring in a lot of money immediately and eliminate unnecessary insurance and maintenance fees.
Use Public Transportation
Relying on public transportation helps reduce your transportation costs, and walking to the bus or metro station is good exercise. You can enjoy new scenery along the way, and the public transport can also help reduce stres. In addition, almost all regional transportation services in major urban areas offer senior citizen discounts.
