Enjoying The Fruits Of Retirement

We all look forward to the day when we can drive off into the sunset of retirement. This article will cover some ideas for those who are near retirement or have already retired.

It’s easiest to consider retirement in four phases: 1) early retirement, 2) mid-retirement, 3) late retirement and 4) end of life. Early retirement is when spending increases with travel, home remodeling, new hobbies, etc. Mid-retirement sees a slowing down of spending and some of those earlier activities. Late retirement again sees even less spending. And finally, during the end of life stage there is an increase in healthcare and personal care expenditures.

If you’re like many, recent economic setbacks may also have shrunk your nest egg. Plus, many retirees are seeing continued decreases in pension payments. Thankfully, not all budgeting strategies for a fulfilling retirement have to be frugal in nature.

 

1) Consider downsizing. The kids are gone and home maintenance isn't where you want to spend your free time. Choose a townhouse or a smaller home and increase your nest egg with the sale of your home. When you and a spouse were working, you may have needed two vehicles, but in retirement you can likely get by with one. 2) Reap the benefits of your retired status. Take advantage of senior discounts and early bird deals at restaurants. Use your new free time to comparison shop, cook romantic dinners at home and travel during off-peak times. 3) Be smart about senior benefits. Take the required minimum distributions from retirement accounts, spend taxable accounts first, sign up for Medicare on time, find the best Medicare Part D prescription plan and delay your claim on Social Security benefits. 4) Think about a part-time job. Working even a few hours a week can help with some extra spending money, plus it's a great way to stay active.

However you decide to spend retirement, I hope you find much enjoyment and fulfillment. Me, I've got a long way to go!