10 Ways to Reduce the Cost of Retirement

These changes will make a big impact on your retirement budget.

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10 Ways to Reduce the Cost of Retirement
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By Emily Brandon

You can retire sooner and with less savings if you are willing to significantly cut your cost of living. There are a variety of ways for retirees to reduce their bills that will have a meaningful impact on their spending power. Consider these ways to cut your monthly costs in retirement:


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Scifly1

Slide "Get senior discounts" lists several places to go...movies, restaurants, etc. Save even more money by NOT going there at all or seldom. E. T. was the last movie I saw in a theater. I don't miss them one bit!

June 25 2014 at 11:09 AM Report abuse rate up rate down Reply
cuestaj1

I decided not to pay off my house after I retired because I earn more in interest income than I would save on my house payment of 3.0 percent..Add to that the tax deduction for interest on my taxes .Even if I paid off my mortgage I would still pay taxes and insurance forever..jimc.

June 24 2014 at 9:06 PM Report abuse -1 rate up rate down Reply
mekerr13

Too much talk. Just name the stocks.

June 24 2014 at 9:00 PM Report abuse +1 rate up rate down Reply
BoniLu

Oh Golly Gee, us poor retired nobody's get to cut all our costs so we can survive, and not end up in the street pushing a shopping cart after working our poor old tired ass-s off most of our lives, yet those in congress & the Senate, and all the rich banker theives get to retire in luxury, and make just as much when they retire as they did, when they worked & virtually did NOTHING!!! Oh Happy Day! Something to look forward to when we all get old and dealing with medical bills on top of it! thanks for the encouraging & depressing advice!

June 24 2014 at 7:57 PM Report abuse +1 rate up rate down Reply
razov

Finally, a useful (and realistic) retirement article for those of us who have not saved a million bucks. Yes, the cold, hard reality is that at least one-third of baby-boomers have little or no retirement savings. Reducing one's cost of living, tax burden and investment expenses seem like common-sense recommendations. So, the bottom line is learn to live with less, and accept it!

June 24 2014 at 1:47 PM Report abuse +2 rate up rate down Reply
cewanuhu

Good tips.. It seems the biggest retirement mistakes always involve spending more than you have. Staying fit is obviously the most important as it will keep you healthy, happy, and limit healthcare costs. I would also look at limiting driving/car costs as they are a real killer in this country. You are probably spending way too much on auto insurance, first off...I would look to spend no more than $25 on car insurance (check Insurance Panda). Your gas/fuel costs are probably thru the roof too. For that, check out the GasBuddy app. It usually helps me fill up my gas tank for less than $20. The elderly aren't usually as high-tech as young people, so chances are they don't know about these services.

June 24 2014 at 11:17 AM Report abuse -1 rate up rate down Reply
rohlemeyer

Go car-less? Are you kidding?

June 24 2014 at 10:00 AM Report abuse +7 rate up rate down Reply
toosmart4u

On social security and medicare or soon to be thank a democrat. If you want to end these 2 fine programs vote republican. The republicans tried to end these 2 programs back in 1935 and 1968 when they became law like they are trying to do today with the affordable care act, also known as Obamacare.

June 24 2014 at 9:51 AM Report abuse -5 rate up rate down Reply
4 replies to toosmart4u's comment
Valerie

I wonder how many of these handy-dandy "retirement savings tips" apply to the millions of older people who are being laid off from their jobs when they hit their 50th birthday. Then, they can't find another job because of rampant age discrimination by employers.

This new Greater Depression economy we are in isn't taking any prisoners. Many of the "old rules" for retirement planning don't work, any more.

June 24 2014 at 9:28 AM Report abuse +7 rate up rate down Reply
j79xjames

Reduce/eliminate debt, downsize, live frugally and consider retiring in a less costly area or overseas. I use the site Retirement And Good Living because it has information on all of these topics and many others including finances, health, part time jobs, retirement locations, traveling, volunteering and more.

June 24 2014 at 6:56 AM Report abuse rate up rate down Reply
2 replies to j79xjames's comment
Valerie

@ James --- While you are dreaming about retiring overseas, you might want to consider that, if you give up your U.S. citizenship to relocate to another country, you will be charged an exit fee of 40-50% of your net worth.

If you lose half of your savings --- how much of a "fun life" do you think you are going to have living somewhere else???

June 24 2014 at 9:22 AM Report abuse rate up rate down Reply
jpfmtka

Retiring overseas might look attractive, but consider all cost and quality of health care before waiving farewell. Unless you renounce citizenship, you will still owe US Federal and State income tax. Interest paid on foreign property is generally not deductible. Medicare will not provide coverage for US citizens living abroad and employer provided retiree health plans are usually very limited overseas. SS can be forwarded but additional costs might be required in transfer to a foreign bank with currency exchange charges imposed. Finally, US courts generally have no jurisdiction over foreign assets, so if you have assets you wish to distribute through a will or trust, you best consult an attorney... both here and in your new country of choice.

June 24 2014 at 12:36 PM Report abuse +1 rate up rate down Reply