9 Budgeting Tips for Seniors Approaching Retirement

It takes time to adjust to retirement. Not only does it mean a change in your daily activities, it means a change in your income too.

Going into your retirement with a clear budget can help to ease some of the fear that retirement can bring. Having some savings in the bank will obviously help too, and this means putting money away long before retirement day hits.

Feeling like you may have been too slow out of the gate when it comes to saving for retirement? Here’s a quick guide to budgeting tips you can apply from today that will help you to not only stash away the cash now but prolong the life of the savings that you do have.

Budgeting Tips For Seniors

1. Get tech savvy

If this is your first time living off a budget or your budget efforts in the past have been somewhat lacking, get tech-savvy and make use of a budgeting app. Streamline your savings and spending plan by automating at least some financial processes and by letting your app determine the calculations. This will help you to better understand your income and outgoings, so you have maximum control over your money. Start with a free budgeting app and upgrade later if you need to.

2. Shop smart and make use of discounts

Many companies offer senior discounts, so do your research and use these discounts to shop and save money. If you’re yet to apply for a senior's saving card and you’re entitled to one, order yours today. Also consider transferring to online grocery shopping, which not only allows you to shop for discounted products first, it can stop you from buying those unnecessary impulse buys.

3. Cut your transportation expenses

If you won’t be driving to work every day, consider dropping to one household vehicle or getting rid of the car completely. Maintenance to old cars can add up, so if you don’t have public transport nearby or you’re not in an area with a high walkability score, consider trading your old fuel-guzzling vehicle for something smaller and more fuel efficient.

4. Consider new living arrangements

Life changes dramatically in your senior years and sometimes you need to adjust accordingly. Could it be time to downsize the family home and move into something smaller? If you don’t fancy a move and you have space to spare you could consider renting out a room or portioning off part of your home for a granny flat offering extra income.

5. Protect against medical costs

Medical costs can be difficult to manage even with a regular income, so assess your current health and think about insurance. How much cover you need will largely depend on your individual circumstances and plans for the future, but insurance plans are beneficial to anyone looking to protect their family, assets/property, and themselves from financial risk/losses.

6. Lower utility bills

Utilities can take up a big portion of your yearly expenses but there are plenty of ways in which you can save on them. Unplug electronics from outlets when not in use, turn down the heat or air-conditioning, shorten your showers, use cold water when doing laundry, use LED light bulbs and look into programs that help individuals on a fixed or low income. There are so many ways to save on your utility bills, so get researching!

7. Bundle your streaming services

Streaming services have changed the way we watch television. If you’re like many and you’re hooked on the idea of choice, you likely have a bunch of different streaming subscriptions coming out of your bank account each month. To save money on individual service costs, bundle your streaming services through your telco provider.

8. Take advantage of free activities

Every town offers free activities for those who seek them out, so take advantage of what’s around you. Make the most of public libraries, museums and art galleries, botanic gardens and parks, free concerts and sporting games, community days, and community fitness classes. Getting out and about doesn’t need to be expensive!

9. Eat out less

Dining out is a good place to cut back on spending as it’s typically one of the biggest spends in people’s budgets outside of home and transport costs. When you do eat out, look for establishments that offer a senior’s discount or seek out cheap eats. If you prefer something a little fancier, challenge yourself to a 21 day financial fast and then spoil yourself on day 21.

Saving For Retirement

Saving money for retirement is important, but so too is living a full and enriching life that’s filled with the things you love to do. Budgeting and saving shouldn’t be about sacrificing the things you care about, but prioritising your expenses so that you have enough for both what you need and what’s important to you.

Remember that little savings add up. Make coffee at home most days rather than go to a coffee shop or skip the extra snacks at the grocery store. Assess your regular spending habits and consider how your new monthly income will be best distributed so that it continues to help you to live well. Create a sustainable budget and you’re on your way to a relaxed and happy retirement.