Saving for large expenses, whether in retirement or during your working years, is a tall task. It often requires you to cut back on spending and find ways to maximize your income. However, in retirement, there are some key differences when saving up for a large purchase. So, if you have plans to save for a major expense in 2023, make sure you approach your saving method according to your financial situation.
The name of the game in retirement is budgeting your expenses. You’ve spent your employed years saving up, but now it’s time to spend those savings wisely… However, when it comes to setting your sights on an expense, there may be methods you haven’t explored.
For instance, you may be eligible for age-related assistance programs such as Social Security, penalty-free or tax-free withdrawals from retirement accounts, Medicare, and more. A savings plan may include utilizing tax-free income and finding senior discounts and credits. In addition, if you’re taking a long-term approach to saving, consider delaying claiming Social Security to receive greater benefits later. If you have other sources of income that can cover your costs now, consider tapping those so you can receive a more significant Social Security benefit when you need it for that expense!
And don’t forget to do the small stuff. Eating healthy, staying active, and exercising your brain can help you avoid healthcare expenses. You may be shocked at how much you can save just by having a healthy lifestyle! And when it comes to healthcare expenses, consider utilizing insurance to help cover costs that could come as a surprise and set your savings goals back.
In all, saving for significant expenses in retirement takes exploring different avenues to maximize your income and save on the major spending categories that may take much of your wallet share away from the purchase you aim to keep.
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This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products. Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results. Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.
[1] [https://www.seniorlifestyle.com/resources/blog/27-tips-for-saving-money-after-retirement/