Financial trouble is the last thing you need to have once you have finally retired after a long working life. You need to live your golden years with the minimum stress and enjoy all the small things in life that you missed out on in the early days. Most of the retirees do not have a proper job and the expenses of these boomers are expected to go up hence it is better to move in a planned way. The average income of a retired person in the US is $43,696. Maintaining an acceptable lifestyle and paying for all those medical bills is not particularly easy with that figure. We have some tips that can help seniors spend their retired life without financial troubles.
Estimate Your Income
If you have just retired or are going to retire in the near future, sit down and calculate all the streams of income you have or are expected to have. This can include your provident fund, pension, investments, social security benefits, pay from a part-time job, and basically any other source where you can get money from. The amount of money you are expected to receive will dictate how you manage your finances.
Estimate Your Expenses
Your financial situation will totally change once you retire. The costs associated with your work life, including transport and socializing with colleagues and other expenses will drop. On the other hand, seniors tend to have higher recreational expenses and medical bills. When you near retirement, take some time and realistically estimate what would be the cost of your lifestyle. Do factor in that you might need more money for medical expenses and there can be some unforeseen expenditures too. Make a reasonable estimate to take things ahead.
Make A Budget
Once you have an idea of your income and expenses, the next thing you need to do is to develop a budget. A budget is a plan that will dictate how much money you can spend on something. Most of the retirees think that retired life is a time for them to spend money on everything they couldn’t do earlier. However, you also need to consider that you want your savings to last a long time without any other source of income. Plan wisely and keep in mind that the average life expectancy in the USA is 78.6 years and it means that if you retire at 65 you need your savings to last you 13 years at least.
When you are planning to spend a considerable time on a finite amount of money, you need to put a cap on all your expenses. One of the major reasons of financial strain for boomers is the children living with them. If the expenses of your children living with you are the cause of financial strain for you, consider asking them to help the family out financially and set a limit on how much can you afford to spend on them.
If you want to get advice on any senior-related matter from the top experts of the field whether it is finance, health, recreation, or anything else, ELEARNING FOR SENIORS is the best place for it. You can discuss all problems with industry-leading experts and get the best advice.