Saving for large expenses, whether in retirement or during your working years, is a tall task. It often requires you to cut back on spending and find ways to maximize your income. However, in retirement, there are some key differences when saving up for a large purchase. So, if you have plans to save for a major expense in 2023, make sure you approach your saving method according to your financial situation.
The name of the game in retirement is budgeting your expenses. You’ve spent your employed years saving up, but now it’s time to spend those savings wisely… However, when it comes to setting your sights on an expense, there may be methods you haven’t explored.
For instance, you may be eligible for age-related assistance programs such as Social Security, penalty-free or tax-free withdrawals from retirement accounts, Medicare, and more. A savings plan may include utilizing tax-free income and finding senior discounts and credits. In addition, if you’re taking a long-term approach to saving, consider delaying claiming Social Security to receive greater benefits later. If you have other sources of income that can cover your costs now, consider tapping those so you can receive a more significant Social Security benefit when you need it for that expense!
And don’t forget to do the small stuff. Eating healthy, staying active, and exercising your brain can help you avoid healthcare expenses. You may be shocked at how much you can save just by having a healthy lifestyle! And when it comes to healthcare expenses, consider utilizing insurance to help cover costs that could come as a surprise and set your savings goals back.
In all, saving for significant expenses in retirement takes exploring different avenues to maximize your income and save on the major spending categories that may take much of your wallet share away from the purchase you aim to keep.
If you are finding ways to maximize your Social Security timeline, optimize your retirement accounts, or utilize options to help save on healthcare expenses, a financial professional can apply their skills to help you achieve your financial goals. Contact us at (603) 261-3736 to get started.
Source: https://www.seniorlifestyle.com/resources/blog/27-tips-for-saving-money-after-retirement/
Bob has a passion for making your money work hard for you. He takes profound joy in ironing out a plan for a long and comfortable retirement, no matter what your current income or level of wealth. With a work ethic second to none, he has a zeal for transforming uncertainty into stable ways for you to protect your future and your family. He knows that the quality of your life you enjoy today can remain as rewarding—or even better—after retirement.
With a strong background in information technology, Carol is instrumental in building operational policies and strategies that keep the organization functioning smoothly. Carol’s organizational skills and her flexibility to jump from priority to priority along with her commitment to customer service makes her an essential part of the Grimard Financial team. When Carol is not working with the Grimard Financial Family, she is a very creative and accomplished photographer.