Discovering The Benefits Of Budgeting For Retirees

| Wednesday, August 15, 2018
By Christine Smith

When it comes to cost in retirement, there are often a number of areas which are overlooked. For example, while retirees no longer need to purchase professional attire for the workplace, there are some aspects which are either a necessity or required expense. In most cases, housing is the first expenditure that need be included when budgeting for retirees.

The cost of living in retirement is often dependent on a number of factors. For most people, housing is the most important aspect. Whether living alone in an apartment, or owning a a home, there are costs associated when it comes to property tax, rent and insurance. As such, when budgeting for retirement is important to consider these costs.

Even for retirees whom are home bodies, there can be cost associated with activities and hobbies offered at local schools, universities and senior centers. While there are some free offerings, there are also a number of courses and programs which provide no or low cost tuition to seniors of various age ranges. One of the best of these is the Osher Lifelong Learning Center offered through a number of college and universities.

One of the most important aspects seniors face is the cost of health insurance. For, while most qualify for Medicare, most often the cost for at least part of the plan is automatically deducted from monthly Social Security checks. For example, in 2016, $121.00 was deducted from seniors in the United States for Medicare Part B.

Taxes are another area which retirees often overlook during the pre-planning stage. Whether a homeowner, investor or business owner, it is important to plan ahead for any taxes which may be required to be paid during retirement. In most cases, individuals required to pay these type taxes will want to work with a CPA or financial planner to assure that all taxes are paid in full while allowing any and all deductions available to reduce annual income.

Based on income, there are several ways to save on food cost in retirement. While many retirees are hesitant to receive assistance, there are a number of individuals whom quality for State or Federal assistance. If this is the case, individuals can often save a great deal of money to use for other necessities by participating in this type program. Whereas, giving up expensive convenience and restaurant meals can go along way in putting money back into the food budget of retirees.

Whether a homeowner or renter, it is often good to set up an emergency fund. For example, if pipes were to burst and need major work, a hotel or other alternative lodging might be required. Whereas, the same goes for unexpected needs in time of emergencies whether related to so called acts of God or man. For example, residents can often be evacuated from areas experiencing emergencies without a great deal of notice. As such, these funds can be greatly helpful, especially if the individual lives a great distance from family and friends.

Whether saving early for retirement, or saving when and where possible during senior years, it is often good to focus savings on a specific area. While this is the case, there are some individuals which are on such low income that a single savings account might be the only option. In either case, the most important aspect of budgeting and saving for retirement is that the individual can make it through medical and other emergencies with as little stress as possible.

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