Nowadays, more and more people are retiring with less savings than they need to get on the path toward a comfortable retirement. According to Northwestern Mutual, 21% of Americans have no retirement savings at all. The Government Accountability Office (GAO) says around 29% of households aged 55 and older have neither retirement savings nor a pension.
Although these numbers may seem daunting, it’s important to remember that it’s never too late to save, even after retirement. From making the most of senior discounts, to cutting down on what you're spending—here are our top tips on saving money in your senior years.
1. Curb Your Spending
Take a look at your purchases and identify spending habits that you can eliminate. It might be a membership you don’t use any more, or perhaps you could start cooking more meals at home instead of frequently eating out.
2. Save Little and Often
Having looked at your spending, figure out what you could shave off each week, each month or each day. Savings of just $1 a day would give you an extra £365 in a year—and even the smallest nest egg is better than none at all.
3. Delay Drawing Social Security
For those who were born in 1943 or later, this strategy will get you more Social Security when you delay drawing it. For every year you delay taking out benefits after you reach retirement age, your benefits increase by 8% until you reach the age of 70.
4. Consider a Reverse Mortgage
If you own a home and have equity, you might consider a reverse mortgage. This type of loan is borrowed against the value of your home. You receive funds as a lump sum, a line of credit or a fixed monthly payment.
5. Invest Wisely
As you approach retirement, you’d be smart to make less risky investments than you did when you first started working. Although high risk investments have the potential to net you a lot of profits, they also have a heightened chance of losing you money, as you may not have the time to weather the ups and downs.
6. Use Senior Discounts
You’ve earned it! Now is the time to take advantage of the many senior discounts available. For instance, seniors can usually get discounts at:
- Movie theaters
- National parks
- Golf courses
- Retail shops
- Grocery stores
Why not check out this Complete List of Senior Discounts for 2023 and start saving some dollars?
7. Maximize Credit Card Points
It’s well worth taking a look at the perks your current credit cards offer and make sure you’re taking advantage of them. Remember to seek out a reward structure that matches your spending habits, for example if you like to travel, pick a card that offers extra travel miles.
8. Claim The Benefits You Are Entitled To
There are a wealth of healthcare, retirement and VA resources available to seniors who qualify. In many cases, family caregivers are also entitled to financial support, such as federal and state tax breaks that can help ease the burden.
Start Saving More Today
It’s never too late to start saving. With a bit of careful money management, you too can maximize your retirement finances and really get the most out of your golden years.