Creating and thoughtfully managing a budget before you retire helps ensure you will have maximum resources available to support your post-work lifestyle. As you close in on retirement, your financial outlook changes. You’re moving from earning to spending, and your needs will likely change, too.
As of 2023, a fifth of American seniors were still actively working, and that number continues to grow. In fact, those 65 and older represent the fastest-growing segment of the workforce. Maybe you will want to keep working. However, if not, careful budgeting can help you achieve a truly fulfilling retirement. Here are some tips and additional resources to help you craft a meaningful budget.
Before You Retire
What will you need in retirement, and how will you pay for it? Make a detailed list of projected expenses -- necessities as well as lifestyle preferences:
Personal finance expert Dave Ramsey recommends you create a zero-sum budget so every dollar you spend has a defined purpose.
Keep saving, if you can, even after retirement. If you’re 50 or older, the IRS allows you to make bigger annual contributions to retirement accounts, which can significantly increase your savings. You could also sell your home to capture the cash equity, but what if you don’t want to do that just yet?
If you’re exploring senior living communities, be sure you’re comparing apples to apples when it comes to cost. Fees may seem high at first, but not once you understand everything that is included.
Good resources:
After You Retire
Along with downsizing your household, it’s time to (honestly) assess your spending priorities. One hefty expense you can easily ditch if you move to a retirement community is property maintenance. Instead, you’ll have the freedom to spend your time doing what you want, not what needs to get done!
Good resources:
Your Budget Is a Work in Progress
Stick to your budget, but monitor it closely, because things will change – your preferences, unforeseen health, or other events. Staying on top of your budget will keep you prepared for the unexpected.
Magnolia Manor Offers Affordable Senior Living
The best budgeting tip for whent he time comes is to find quality senior living at an affordable price, like Magnolia Manor. Across our 8 campuses in southern Georgia we offer 8 different levels of care that fit within most budgets. Come see for yourself how wonderful and affordable senior living can be. Call us any time at 1-855-540-LIFE (5433) to schedule a tour.