Most people look forward to retirement. But once it arrives, financial realities can present multiple challenges. Not all of the dilemmas are limited to the amount of money you have managed to save, per se. Many stem equally from having more time on your hands.
By no longer having to go to work, you’re now likely to find yourself in retail environments more often (e.g. shops, malls, superstores). You’ll have ample time to shop online, pursue recreational activities, and visit your friends. Travel is a common retirement dream, but it gets expensive when the costs are coming out of your own wallet. And since the average American retires at 62 and lives a couple of decades longer, making sure your resources stretch for a long time can present a struggle.1
There are solutions. Instead of waiting to see whether or not you can readily adapt to new spending patterns – and finding out that it’s hard – put in some planning. Analyze costs and begin to figure out where you can cut to create a realistic budget. If you stick to it, your money can go the distance.
Here are some ways to start your retirement budgeting.
While it would be preferable to plan your senior years well in advance, retirement budgeting is a great way to help you live within your means. Arrive at a budget you can live with. You’ve earned a great retirement. Enjoy it.
1 Rebecca Riffkin, “Average U.S. Retirement Age Rises to 62,” Gallup.com, Apr 29, 2014
2 Ann C. Foster, “A closer Look at spending patterns of older Americans,” US. Department of Labor Statistics, March 2016
3 Adam Davidson, “It’s Official: The Boomerang Kids Won’t Leave,” New York Times, Jun 20, 2014