What You Can Do If You Think You Can’t Afford Retirement

Updated on April 8, 2020

Image source: pixabay.com

If you’re new to the retirement gig or have been retired for quite some time, you may have noticed that you constantly have to look out for your finances. Growing old and retiring comes with a lot of changes, mostly in the financial aspect. Assuming you have set aside a retirement fund, you should be set for the rest of your life. 

Even with a retirement fund, being retired can be costly. Here are some of the things that retirees can do to afford retirement.

Retirement and Working Can Go Hand in Hand

In earlier years, we often equate retirement to no longer working. In fact, a lot of our expectations of what retirement is are often these fantastical images of constantly chasing the sun as we lounge about on some beach or in a luxury hotel. While this can be true for a very small amount of people, the same can’t be said for the average worker.

Another thing is that the world is experiencing a paradigm shift when it comes to retirement. A lot of retirees are throwing away age old retirement practices. They are instead finding ways to continue working even though they are already retired. 

For the retirees that do choose to work through retirement, the reason is that they enjoy the work that they do. This not only provides them with emotional and mental health benefits, but a steady source of finances other than their pension or retirement plan.

Consider A Freelance Gig

Nowadays, more options have become available for retirees than the traditional 9 to 5 job. Given that the startup industry is growing in number, there are a lot of young entrepreneurs who may not have enough skills or knowledge on certain aspects that need the guidance of a more experienced person.

A lot of retirees who have accumulated a wealth of knowledge often get freelance work by being a consultant to a number of companies. Consultancy work is great for retirees; they no longer have to slave away for eight hours just to earn money. Instead, they use their years of experience to advise and educate starting businesses on how to succeed.

Retirees also have the opportunity to make money from home. Provided that they have a stable internet connection, they can also partake in many online freelance gigs, such as answering surveys, tutoring children and teens, and even answering captchas.

Consider Retiring Abroad

Retirees living on a smaller fixed income may find that moving to less expensive places in the United States still won’t be enough to allow them to live comfortably. While certain states in the US might be more friendly to a retiree’s budget, they may not always have the amenities that retirees need.

Packing up and moving overseas has become a popular choice among many American retirees. Living overseas is mainly a solution to a cost issue; retiring abroad makes it easier for retirees living on a smaller budget to make the most out of their American dollars. Many retirees often consider moving to Southeast Asian countries like the Philippines, Cambodia, or Vietnam due to the lower cost of living there. 

However, retirees with very specific medical needs may often choose to move to countries where the amenities that they need for their health are readily available, but without the exorbitant healthcare costs. 

Lowering Your Cost of Living

A lot of new retirees expect that as soon as they retire, they will still be able to continue living the lifestyle they enjoyed when they were earning a lot of money. They might still expect to live in a bustling city or enjoy the comforts of a two storey home with a lot of square footage. 

Growing old and retiring however, comes with some changes to one’s lifestyle. For one, it may no longer be necessary for a retiree to live near a good school district. It may also become impractical to live in a huge house, especially one with stairs. 

Getting your health insurance right in retirement is important both for peace of mind as well as cost of living. Those familiar with Medicare may already know that there are some charges that Medicare does not cover; thankfully supplementary insurance plans like Humana Insurance can help retirees with reducing Medicare out of pocket costs.

Downsizing can help retirees live within their means by avoiding unnecessary costs that can chip away at their retirement funds or their pension. This will also redirect those funds to be used on the things that retirees need, like medication, food, and even utilities. Another plus to downsizing is that it can help break the cycle of debt involved with paying expensive mortgages for huge houses.

Retiring isn’t always a picture perfect fantasy. If you’re not careful, you can end up with a financial problem, which is why following these tips can help you live your best retired life without worrying about financial stuff.

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