Life at 65 years old brings a whole new perspective and responsibilities. In retirement, activities aren’t the only thing that would change but also the expenses and financial matters. During this time, it is possible that income might fall, and the consistency of cash flow will be shaky. To make the most out of your financial situation, here’s a roundup of what a 65 years old like you, should know about money saving tips.
As you organize your financial life going forward, you should consider downsizing your home and property. There is a weight taken off when you no longer pay a mortgage, large property tax bills, and outsized utility bills.
– Daniel Socolow
Compare the care
It’s more fun to plan a trip to Hawaii than a long-term care destination. But life’s journey often includes skilled nursing for ourselves or our parents —and doing research beforehand helps with decision-making.
– Greg Bennett
Configure your cash flow and manage expectations
Avocado toasts and lattes won’t ruin your finances. Lifestyle creeps and splurging on big-ticket items will.Pensions, Social Security, and personal savings were once the primary sources of retirement income. Now, pensions are “out,” and working is “in.”
– Darla Mercado
Create a budget
Retirees who have saved up for many years can feel that reaching retirement age means it’s time to enjoy the fruits of their labor. Fair enough, but the risk is that people can go overboard and spend it all in a few years. To avoid falling into this trap, budget your expenses. Be sure to include non-traditional expenses that you plan to incur, such as extra travel.
– Denise Appleby
Working longer will give you time to build up your savings and will reduce the number of years that you’ll need to live off of your savings. Once you do retire from full-time work, income from a part-time job can stretch your retirement dollars even further.
– Dave Ramsey
Reexamine Your Hobbies and Habits
Hobbies can sometimes be expensive – especially if your hobby is restoring antique cars or playing golf at the country club. If you’re looking for a cost-effective hobby, try gardening or join a local book club. As far as saving money on habits, check with your local gym to see if they offer a senior discount or look for group fitness programs that cater to seniors. You may even find that your health insurance plan offers free or discounted gym memberships.
– Frugal Village
Take advantage of perks
Turning 65 years old opens up to a whole new world of different perks. Most of the perks offer discounts which can save you a lot of money. Don’t hesitate to ask the establishment if they are offering a special discount or promotion to people of your age. Senior discounts are mostly offered on tickets, travel fares, restaurants, entertainment establishments and senior centers.
– Leandro Mueller
Save on Medicare Supplement Insurance
When you turn 65, healthcare should be one of your top priority. I retirement, some things can whack you off your feet and tear down your financial stability, and healthcare is one of them. Fortunately, when you turn 65, you’ll become eligible to be a Medicare beneficiary. Having a Medicare to pay for almost 80% of your healthcare expenses is already helpful, but still might not be enough at some point when your out-of-pocket expenses is still soaring high. That’s when a Medicare supplement plan comes into action. Also known as Medigap plan or Medicare supplement insurance, it picks up the all or part of the costs that your Original Medicare left off. However, getting this additional plan requires you to pay additional monthly premiums. Here are additional tips how you can save on Medigap plans:
Not all companies that sell Medicare supplements offer all ten types, and not all of them sell the plans at same prices. Prices vary wildly from one insurance company to another. Since the plans are standardized, it is wise to choose the cheapest plans available. You can just request a Medicare supplement quote to see which insurance provider gives the best prices for whichever plan that interest you.
– Leandro Mueller
Take advantage of household discounts
Many Medigap carriers offer household discounts if both spouses have a policy with that company. A savings of even 5% can add up to a lot over the years.
– Danielle Kunkle