In addition to the money put away for retirement, there are various ways you can save money for your retirement. There’s still time to give your savings a good boost before you retire.
In this article, we’ll discuss the best ways to save money during or right before retirement.
Sell One of your Cars
The average American family owns two cars, and a significant portion has more than two cars. This was obviously necessary before retirement, but now that you no longer need to commute to work, consider selling a car. This will also save you money on monthly auto insurance and gas bills.
Downsize your home
Some choose to simply move to a smaller home, others prefer the convenience of moving to a retirement community, where lawn care, leaf raking, snow shoveling, house maintenance, and other chores will be done for them.
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However, if you’re struggling with the idea of parting with your forever home, consider refinancing to help possibly save you hundreds of dollars on loans.
Use Senior Discounts
After all this time—you’ve earned it. Seniors can usually get discounts at movie theaters, national parks, golf courses, some restaurants, and more.
Sign Up for Medicare
Medicare can be used to cover certain medical-related expenses instead of using your savings to cover those amounts. Medicare provides hospital insurance—for in-patient care and certain follow-up care—and medical insurance coverage for physician services that are not covered under the hospital insurance.
Medicare is available to individuals who are age 65 and older. The medical portion of the insurance is available at a premium and is optional.
Don’t Forget About Taxes
Remember that not all of that money is yours to keep. When you make withdrawals from a traditional 401(k)-type plan or traditional IRA, the IRS will tax you at your rate for ordinary income. You may want to strategize to hold onto more of your retirement funds—for instance, by moving to a tax-friendly state.