Paying for housing is the largest bill we have to pay and when you’re in retirement and on a fixed income… Well, that makes life much harder.
But, it doesn’t have to be.
Here are 5 ways you can reduce the cost of while you’re on a fixed income as a retiree.
1. Plan Ahead for Multiple Phases of Retirement
Retirement only lasts for so long before you’re no longer around. The home that you’re in when you’re just beginning your retirement (say, 60 years old) may not be the best place when you’re in your 80s.
When you’re planning the different stages of your retirement, think of where you want to be realistic. Unfortunately, you may even have to consider a retirement home as an option for the later years.
Homeshare, aka having roommates, is becoming the way of the world (or just the US) and it isn’t all that bad.
If you have a friend or love interest move in with you (or vice versa), you can save a lot of money, have companionship, and have someone nearby in case of an emergency.
Your spacious four-bedroom, two-bathroom house may have been perfect for your growing family, but now that everyone has moved out and it’s just you and your spouse, consider downsizing.
Not only will downsizing help bolster your retirement funds, but you can move to a place that has the features and amenities that are still important to you.
Another option for downsizing is moving into a senior-only development. These developments tend to have community centers and clubhouses that you can use to socialize, which is important if you’re living alone.
4. Move to a Tax-friendly Location for Retirees
It’s not uncommon for families to move to a high-tax area because they want to make sure their kids are receiving the best education they can afford.
However, now that there aren’t any children in the house, you don’t have to worry about staying in that high-tax area for their education.
Some states, like Florida, Mississippi, Nevada, and Pennsylvania are very retiree friendly. They offer low income and sales tax (or none at all!) For those on a fixed income, that alone can be a huge saving.
5. Sell Your Property and Retire Abroad
If you’re going to sell your home and relocate, why not relocate somewhere abroad? Panama, Mexico, and Costa Rica are very retiree-friendly, thanks to affordable housing and inexpensive food costs.
If you want to move to a whole new hemisphere, Portugal, Malaysia, and Vietnam are also popular options for retirees.
Housing costs eat up much of a retiree’s fixed income and if you don’t plan for it when you’re younger, your options are going to be limited when you actually retire.
However, with these tips in mind and careful consideration, your retirement years can truly be worthy of the moniker, “the golden years.”
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