You've worked and saved, and now, it's finally time to stop working and buy that beach house, right? If you're like many Americans, you might be trying to figure out how to live in retirement with no money besides Social Security income, or maybe you're too nervous to make big purchases for fear of running out of funds early. Never fear! There are plenty of ways to save money in retirement, from tiny lifestyle changes to smart investments. If you want to be retired and thrifty but also want to have fun, our retirement savings tips can help you spend wisely and have a blast during your "twilight years."
Think of it this way: If you've already saved and retired, you're already doing great! If you were one of the unlucky ones, you'd be saying, "I want to retire but have no money." Trying to figure out how to retire with no money saved is a lot more difficult that having just a bit saved up. But even if the situation gets dire, saving after retirement isn't impossible, even while on a fixed income. There are great ways for seniors to save money out there once you know where to look!
If you're wondering how to save money after retirement, we've listed several strategies: budgeting wisely, getting a side gig or part-time job, saving with senior discounts and memberships, and avoiding spending the funds you have unnecessarily.
At this point in your life, you've probably figured out how to create a budget. On the other hand, budgeting for retirement has a few tricky factors to consider, with a fixed income being the primary source of potential problems. You can't rely on bonuses, raises, or changes in salary like you could while you were working. On the other hand, having consistent funds means you can plan consistently. Let's talk about some of the most important financial lingo.
There are more than 2,500 benefits programs for seniors. You can easily check which ones you're missing with the National Council on Aging's Benefits CheckUp. You can also use Benefits.gov to find more qualifying benefits. State and local funding can vary a great deal, but here are some of the most important federal senior benefits to keep in mind:
If you're not already familiar with this well-known national health insurance program, you will be. Note that this is different than Medicaid, which covers low-income individuals. Also, don't forget Medicare Part D, which offers prescription drug plans.
This will be the primary source of fixed income for retirees from the federal government.
For low-income seniors, there's no shame in getting help for groceries. Be sure to check out the list of criteria.
If you're struggling to make do in extreme weather, this government program can help with energy needs.
There are lots of special rules for seniors that will allow them thousands of dollars in tax breaks and cuts. Here are a few potential changes to look at.
There are Patient Assistance Programs (PAPs) offered by drug manufacturers and State Pharmaceutical Assistance Programs (SPAPs) that offer free or cheap prescriptions. (The age depends on your local program.)
There are literally hundreds of financial terms to do with retirement, so it can feel like you have to go back to school again in order to not get lost; however, generally speaking, developing a fairly low-risk financial profile is the best method for how to invest retirement money after retirement.
If you have any extra money, it would be smart to tuck it away by investing. That way, you can get something back. These aren't the only options, of course. It's likely that you already have an IRA or 401(k) account, and if you don't, there are lots of tax benefits to opening one. Everyone has their own opinion on what's the best place to put retirement money. For some, it's the stock market. For others, it's their mattress.
While it's true that there are plenty of places that aren't so good for getting a return, there's nothing wrong with more education. If your financial adviser is throwing a bunch of terms at you, try looking up more information on what they're talking about on Investor.gov.
Also, it may be a good idea to double-check that you've claimed your pensions and 401(k) from your employer(s). If in doubt, see if you can search for unclaimed pensions and abandoned plans.
Let's say you're not lucky enough to have extra money hiding around. If you're one of the many Americans who haven't had the chance to save enough, you may ask yourself, "How can I make money in retirement?" When people find themselves cutting down on their budgets as much as possible, sometimes, the only option is to earn more.
Going back to work full-time isn't really the best way to make money in retirement. Most people will start a part-time job or side gig instead to help them make connections with new people while earning a little bit. And there are plenty of productive things to do at home that can help you earn as well. Here are a few ideas for how senior citizens can make money:
Here are some flexible "gigs" that you can pick up pretty much whenever you want.
How can seniors make money that's a bit more consistent? There are plenty of short or part-time jobs that can work out.
You can create a budget, invest, and try to earn while you're a retiree, but you can also cut back a lot on spending in really creative ways. Groups like the AARP provide many of the senior discounts and deals you're looking for!
And for retirees, connecting with other seniors is critical. Social activity is scientifically related to potential longevity, so it's important to explore groups in your area that can provide friendship as well as potential financial benefits.
The largest nonprofit for retired people, their extensive list of benefits includes banking help, cheaper medical insurance, travel deals, and entertainment discounts. For most, AARP membership is worth the cost because of the wide breadth of discounts available. (Membership is $12 for the first year for people ages 50 and older.)
This is considered to be the more conservative version of the AARP, with financial benefits, deals on hotels, and help with emergency calling and identity theft. (Membership is $15 per year for people ages 50 and older.)
Another conservative organization, this organization is a tad newer. Benefits include the AMAC MasterCard, insurance help, and some retail savings. (Membership is $16 per year for people ages 50 and older.)
A Christian-based alternative to AARP, this organization offers specific Christian health ministries and access to the Today's Christian Living online store. (Membership is $14.95 per year for people ages 50 and older.)
Another conservative and Christian-based answer to AARP that speaks out on issues affecting Social Security. Most of their perks include insurance and cash-back benefits. (Membership is $12.95 per year - no age requirement.)
A smaller conservative-focused organization that supports small businesses, military service, strong family bonds, and faith-based living. (Membership is $12 per year for people ages 60 or older, but younger people may support the organization.)
Created as an answer to the Medicare Catastrophic Coverage Act, this conservative group offers a small amount of benefits including car rentals, hotel deals, and vision aids. (Membership is $10 per year - no minimum age.)
This is a network of women ages 50 and older who wear purple dresses and red hats and go on fun adventures! It's meant to connect older women with each other. (Supporting membership is $30 per year for women 50 and older.)
Meetup is popular with everyone, and they have a robust collection of events for seniors as well. (Joining Meetup is free; the individual events will have their own costs.)
Are you tech-phobic? Learn important computer skills with this club. (Membership is $44 for the first year for people ages 50 and older.)
Volunteering can be a great way to fight off isolation, a real danger for many elderly people. This database can help find great places where seniors can connect with their communities.
Are you retiring after working in a small business environment? Serve as a mentor to a new small business owner in this program offered by the U.S. Small Business Administration. There's no age requirement!
Volunteer to become a foster grandparent and mentor children, young mothers, and troubled teens, connecting with your community in a whole different way.
While not exclusively for seniors, clubs like the Elks Club, the Rotary Club, your local Veterans of Foreign Wars (VFW), the Sociable Sisters, and many other organizations can either connect you to new people or advocate for your needs.
Joining a group like the AARP will often allow you to get more senior discounts and coupons than you would normally have access to. For example, an AARP card will get you a senior discount at Outback Steakhouse, Carrabas, and Bubba Gump Shrimp Co. On the other hand, you don't necessarily need a membership to get deals - just ask! Here's a short list of senior discounts that you can ask about whether or not you have a membership.
Many retail stores offer a senior citizen discount on certain days, so pay attention to the fine print! For example, there's a Joann Fabrics senior discount coupon, but only on specific days.
This senior art supplies discount coupon offers 10% off sale items at Michael's.
Get one 5% discount per order; it may not be combined. [60+]"Senior Discount Days at Walgreens - Some participating Walgreens offer discount days on the first Tuesday of the month.
Some participating Walgreens offer discount days on the first Tuesday of the month.
Chances are good that if you need to go somewhere in America, you can get deals on the travel there and back, not to mention your stay.
Sure, the National Park senior discount isn't as good as it used to be, but that's no reason to not go on adventure.
For many restaurant chains, from Boston Market to Ben & Jerry's to Whataburger, there are a host of senior discounts and deals available at various locations, but not all of them. It certainly never hurts to ask! Here are a few common examples:
Ask your local McDonald's if they're participating in discounted coffee for seniors.
Senior users can get a special deal for $35 per month.
Also, keep in mind that you don't necessarily need to stick to national chains! Shop around for discounts and senior coupons at your local mom-and-pop shops as well. You never know what sort of deals could be available locally.
If you're struggling to find good senior citizen coupons, you might be surprised by what you find using Coupon Follow!
One of the most obvious ways to save money is to avoid having it stolen! Unfortunately, there are plenty of senior fraud cases and scams that target the elderly, and they're updating their tactics every day. Here are a few tips.
There are Patient Assistance Programs (PAPs) offered by drug manufacturers and State Pharmaceutical Assistance Programs (SPAPs) that offer free or cheap prescriptions. The required age depends on the specific program.
You can get a deal on the cost of phone and Internet service through several providers. Your qualification depends on income and federal programs
While it sounds sketchy, free credit reporting is your right as a consumer. You can get reports from TransUnion, Equifax, and Experian. Don't trust other websites besides this one, however.
There are a few imitation websites mixed in with real local chapters, but this is the real resource for getting meals delivered to your home.
You can get help from the Volunteer Income Tax Assistance (VITA) program if you make $54,000 or less. You can also qualify for Tax Counseling for the Elderly (TCE).
While working, many of us dream about what to do during retirement, often imagining far-off beaches and grand schemes. But the reality is that many of us will experience boredom at the lack of work. If you're finding yourself sucked into the TV after a few weeks or not reaching out, the dangers of social isolation are real. It's very important to stay active. But don't worry; there are plenty of things to do when retired and bored, even if your budget is limited!
Of course, these are some simple things to do in retirement, but what about bucket-list items? When most people think about what to do in retirement, they're imagining those big ideas, trips, and purchases. It's all about sorting out your priorities. In extreme circumstances, affording that trip to Bali might mean downsizing your home or your budget. But always check for senior deals and discounts first!
Create a realistic bucket list that's based on achievable needs and wishes. Sit down and write one, or write out your desires on index cards, arranging and rearranging them based on what's the most and least important to you. This will give you a better idea of what to do after retirement immediately as opposed to a few years from now.
Avoid "spendaphobia," or a fear of spending that will ruin your retirement. Rather, plan your big dreams carefully. Ideas that are incredibly expensive or far off might not actually be that important to you when you list out what you'd like!