Guest Room

4 Ways to Make Your Retirement Years Cheaper

By Bob on September 1, 2016 1:24 AM

Approaching retirement age is often scary, especially for people who haven't saved a lot of money. With a reduced income, you may need to change some of your habits. If you're looking for ways to make your retirement years cheaper, try these four tips.

Downsize Your Home

Image via Flickr by PinkMoose 

Since you no longer need a large house to raise children, you may want to sell your property and downsize to a smaller home. This gives you quick access to cash that you can use to have fun during retirement. By exchanging your current home for a smaller, less expensive one, you will also save money on:

• Utilities

• Property taxes

• Maintenance

• Furniture 

While you might have a hard time adjusting to a smaller house at first, you will eventually appreciate it. As you get older, you will probably find that you have less energy to do housework. When you have a smaller home to clean, you can devote more of your time to more enjoyable pursuits. 

Spend Less on Your Phone

Having a monthly phone plan is helpful for people who need to use text, instant messaging, and other features for work. Once you don't have to spend a lot of time using your smartphone, though, you might want to choose a pre-paid SIM card instead. That will help you avoid paying for services that you don't need to use anymore. 

Owning a pre-paid SIM card can also help you save money on devices. Instead of choosing the newest, most expensive smartphone, you can use the SIM card in a more affordable mobile device. Click here to learn more about how you can stay on a reliable cell phone network while lowering your monthly expenses. 

Take Advantage of Tax Breaks

The government has been collecting money from you for long enough. Even Uncle Sam seems to understand that you need additional tax breaks after you retire. After all, you did your part while you were working. 

Unfortunately, not everyone understands that they get extra tax breaks after they retire. Some of the advantages that you should use include:

• A bigger standard deduction that will lower your tax burden

• Easier medical deductions

• Medicare premium deductions 

Since you aren't on a payroll anymore, you can plan to pay your state and federal taxes quarterly. By holding on to your money a little longer, you can put it into a savings account that earns interest. It's not a huge difference, but it will benefit you over time. 

It's smart to talk to a financial planner before you retire. A professional can review your finances to lower your tax burden. What works well for one person isn't always great for others, so it pays to get personalized advice. 

Save Money on Travel Services

Once you retire, you will have more time to explore the world. Having more time, however, doesn't mean that you can afford to spend money on lavish vacations. More often than not, retirees have to find more affordable ways to travel. That way, they can stretch their budgets and get more out of every dollar they spend. 

There are several ways that you can make travel services cheaper after you retire. Some of your best options include:

• Joining AARP to take advantage of senior discounts

• Booking rooms directly through the hotel instead of using a travel agent or website

• Negotiating with hotels and airlines to get lower rates 

You can also make travel more affordable by renting out your home while you're away. A site like Airbnb makes it easy for you to turn your house into a short-term rental when it's convenient for you. You can also use sites like Love Home Swap and Knok to trade homes with other people. That way, you get a free place to stay while you travel. 

A lot of people worry about how they will fund their retirement years. Planning ahead is one of the best things you can do. It's not just about saving money and investing, though. Lowering your expenses will also make retirement more affordable.

Comments