Contrary to popular belief, spending your retirement years does not mean you no longer have to care about your personal finances. If your loved ones are planning to retire, it’s important to make sure they are on the right track and have sufficient funds to fund their lifestyles. As such, here are some tips and tricks of money management for retirees.
Always Make a Budget
Planning and adhering to a budget is by far the most crucial rule to remember. Budgeting not only applies to young adults who are working but also everyone in all different stages in life. These days, making a budget and keeping track of expenses and other spending are extremely easy thanks to technological advancements. Apps like Mint Mobile allow users to connect their financial accounts to a tracker, where users can view and categorize their spendings. The app also provides a designated space to set reminders for debts and bills, as well as make payments and check balances all in one place.
If Possible, Reduce Fees
When your loved ones were working, high fees from banks and other investments were not too much of a financial burden. However, once your loved ones are retired, this means they no longer have a steady income source to rely on to fund these fees. Take some time out of your day to sit down with your loved ones and discuss other options. Compare a range of credit cards and banks, and determine which one is suitable for your loved ones without the high fees. There are even some local banks in the United States that carry no charge for their businesses and transactions.
A way to cut down on expenses is to downsize. This makes a lot of sense considering that children of loved ones who are retired should already be working full-time and living on their own. If loved ones are residing in their home by themselves, it would be a practical decision to move into a smaller space and sell their house. When it comes to downsizing, we recommend transitioning to a retirement community like Discovery Village At The West End. Here, residents are treated to a wide range of lifestyle programs and amenities that are designed to provide the best comfort and care for loved ones. As such, you can rest assured your loved ones can continue to be independent and enjoy their freedom while being taken care of by trained team members.
Plan Social Security Benefits
Some loved ones may ignore the importance of social security and tend to postpone withdrawing their benefits. This can be a huge problem as the compounded interests add up each year. Annually, the interest would amount up to 8%, and while it may not sound much, these interests will eventually add up to hundreds and thousands of dollars. As such, do remind your loved ones to go for a physical checkup and make financial decisions on their health as soon as possible. Unless there’s a guarantee that your loved ones are in good shape, can live well into old age, and have the financial capability to not tap into their social security benefits, then it’s a good idea to strategize on their finances.