Reaching senior status can be tough for many people who aren’t sure how to handle their finances, especially after retirement. In fact, research has shown that after people retire, they are more likely to spend more money. This is because with ample free time on their hands, they’re using those funds to do new things and purchase more products. In fact, one study by the Employee Benefit Research Institute found that 45.9% of households spent more than what they had spent before retirement. With that in mind, it’s important for seniors to start to think about how they can save money in the long-term. Here are a few ways you can do this:
Assisted Living
Senior living homes are designed to help seniors make the most of their living arrangements. According to Ozarch, premier assisted living architects, “Everything from independent living, memory care support, and assisted living options—to skilled nursing accommodations, short-term care, comfortable visiting areas, and outdoor accessibility—we value thoughtful design to balance health, wellness, and most importantly, to create a home.”
With this in mind, it’s clear that assisted living communities provide extensive care to their residents. But it’s not just tailored accommodation that makes senior living homes great options. They can also help save money, too. There are ways you can double your money. Because it caters to seniors who have the ability to live a more independent lifestyle, the costs are much lower than a nursing home. Additionally, veterans programs and long-term insurance programs can offer financial assistance to curb some costs.
Join a Discount Club
There are various discount clubs out there, and AARP is one of the most popular ones. These discount clubs can help you manage your discounts from anywhere. AARP, for example, has a mobile applications that makes it easy to discover nearby discounts without having to do manual work by calling and researching. They also offer free hearing tests once per year, free movie screenings, and dozens of food discounts. Check various discounts clubs to see what’s right for you.
Consider Refinancing Your Mortgage
Your home is one of your biggest personal assets, and if managed correctly, it can really help you with your funds. There are several benefits to refinancing a mortgage, but it’s important to consider the pros and cons and decide what’s best for your specific situation. One of the biggest benefits of refinancing is getting a lower interest rate, which could ultimately lower your payments and relieve some stress from your monthly budget. The more equity you have in the home, the more appealing this option could be. However, if you refinanced into a longer term loan, you might find that although you’ll have immediate financial relief, you’re stuck paying for the home for a much lengthier duration.
Get New Health Coverage
Take a look at your current healthcare plan and start to examine ways you could lower those costs. No matter what type of insurance you have, there are plenty of hidden ways you can tip the costs in your favor if you know where to look. You can speak with a financial advisor to help to determine areas where you can save, especially when it comes to medical costs.
Take Advantage of Senior Discounts
There are many businesses and establishes that offer senior discounts. All you have to do is ask. Whenever you go out to eat or plan to partake in an event, check the company’s website to see if they offer senior discounts. For instance, senior status can give you great savings deals in the travel industry, as many hotels and airlines offer discounts that can go a long way towards keeping more money in your pockets. On American Airlines, for examples, traveling during non-peak periods can yield ticket prices upwards of 50% off. Some food shopping centers also offer seniors a certain percentage off during specific days of the week. Restaurants typically offer anywhere between 10% to 20% off bills. You can likely get a number of online senior discounts as well but be wary of retirement financial scams.
Reevaluate Transportation Costs
The cost of owning and maintaining a vehicle can quickly add up. For many seniors, having a car is non-negotiable, but it’s important to consider what your options are. Start by shopping around for a lower insurance rate, or considering joining a carpool or learning how to use ride sharing mobile applications. Look into public transportation as well. If you plan on moving to an assisted living community, talk to management about what your options are for getting around. Many communities offer special transportation for seniors. You can also check walkability scores for different neighborhoods near you if you plan to move to accommodate your new lifestyle.
