Seniors are saving thousands of dollars every year following these 10 simple steps
2022 is an expensive year, and it won't be easy for all the hardworking seniors preparing to retire. Health care, housing, utilities and even food costs have soared.
It’s not too late in the year to get your finances on track. We reached out to hundreds of American Seniors to find out how they are staying ahead of the curve. Like 65-year-old Johnny Bolton who after a terrible financial disaster in his thirties made a resolution to be more disciplined with his finances. Over the decades, that decision has served him well. He has mastered the art of investing, budgeting, and saving. He shares how he has been able to save thousands of dollars this year.
1. Delay receiving Social Security benefits
There is a plan that will get you more Social Security if you were born in 1943 or later. If you wait a year after reaching retirement age to take benefits, your benefits will increase by 8% until you reach the age of 70. When you delay taking Social Security, you immediately save more money.
2. Reduce your spending and lifestyle
Take a look at what you’ve bought in the last several months. Determine which spending habits you can do without. It could be a subscription you no longer use, or it could be that you start cooking more at home instead of going out to dine. Keep a spending diary to keep track of your expenses. Before you buy an expensive item, explore other options.
3. Take into account a reverse mortgage
A reverse mortgage is an option if you own a property and have equity. This form of loan is secured by the equity in your property. You can get money in the form of a flat sum, a line of credit, or a set monthly payment
4. Contributions to your 401(k) and individual retirement account (IRA) should be updated
According to Investopedia, you can no longer contribute to a traditional IRA until you turn 70½. However, you can still contribute to a Roth IRA, so make sure you have one. If you decide not to retire and continue working, you can contribute a portion of your paycheck to a 401(k) plan (k)
5. Look into government assistance
The National Council on Aging has a website called Benefits Checkup where you may look up public services that can help you save money. Benefits such as care help, transportation, medical aid, and health care may be available to you.
6. Look for discounts for seniors
Senior discounts are available at many retail locations, including Kohls, Ross, and Bealls, to mention a few. Before you go on a large shopping spree, contact or check online to discover if the store you’re going to gives a discount and, if so, on what days.
7. A "Medicare Flex Card" is being used by seniors to help pay for groceries.
Is the cost of food covered? It’s true! The new “Medicare Flex Card” is extremely popular among seniors. It could assist in paying for groceries, doctor’s visits, prescriptions, and other expenses.
8. Make a Meal Schedule
Every year, the average family wastes $1,600 worth of vegetables. Meal planning can help you reduce food waste and doesn’t have to be difficult. It simply entails planning ahead of time what you’ll eat for the week, going grocery shopping, and then putting the components together.
If you plan ahead of time, you can save money by repurposing ingredients and avoiding costly takeout. Make a list of what you already have in your kitchen, then look for recipes that call for similar components. No matter how many people you’re cooking for, there are plenty of meal planning blogs, websites, and apps to get you started. You can even get supplies and meals. Make a shopping list for the ingredients and strictly stick to it.
9. Americans can now get life insurance at incredibly low Costs
Will your family have enough money to cover a funeral and other expenses when the time comes? The average funeral costs over $10,000. A good life insurance plan could easily ensure that your family is able to afford final expenses, the mortgage, and other living expenses. You can make sure your loved ones are taken care of at an affordable cost. Special programs are now available which are allowing seniors to obtain high-quality life insurance plans for close to nothing. Learn how affordable life insurance plans really are today.
10. Consider the alternatives for married couples in terms of Social Security
You can still save if you need to collect Social Security payments and are married. The ideal method to do this is for the higher earner to delay claiming benefits and stop paying payments for a longer period of time. Spousal benefits are available to spouses with lesser earnings. This strategy saves money while also bringing advantages
11. By bundling home and auto insurance, seniors can save a lot of money
When seniors combine their home and auto insurance policies, they save an average of $730. Using different plans, most seniors end up spending too much for their home and auto insurance.
12. Relocate to a lower cost of living area
This may sound scary for a lot of you but moving to a new state or city might save you tens of thousands of dollars every year in living expenses.