Ways to Bring Down the Largest Expenditure in Retirement

Barbara Jones
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The largest expense for a retired person is housing, which amounts to over 40% of the expenses of those who are aged 65 years or more, as reported by the Employee Benefit Research Institute. However, more often than not, you end up spending money for places that are not in line with your requirements.

For instance, by the age of 85 years, two-thirds of the population has certain kind of disability. In case you are unable to get around your community or house or the required social and medical services are not easily accessible, you might find yourself in an expensive nursing home ahead of time.

Here we bring to you 3 ways to ensure that you enjoy a comfortable stay in your home once you grow old.

Getting the house in shape

75% of people would love to reside in their present home as long as they can in retirement, as revealed by AARP. However, only 20% live in a house that consists of features to assist them in safe and comfortable living as they age. The convenient features include a first-floor bedroom as well as bath so that in case it becomes hard to climb stairs, you can reside on the main level, along with wider doorways for moving in a walker or wheelchair if needed, and covered entrances to avoid slipping in rain or snow.

Those could be expensive renovations; hence the best time to go for them is when you are still working, because then the present income can be utilized to cater to these expenses. There are also a number of adaptations which create a big difference as you age, but are not that costly. These incorporate raising electrical outlets for making them more convenient to reach, installing grab bars as well as a shower chair within the bathroom, and incorporating nonslip gripper mats beneath area rugs.

Taking it down a notch

As per an AARP survey, two-thirds of people would love to stay in their hometown after retirement. Hence to cut down your expenses without going far away, you can shift to a more manageable, cheaper house. You might add the proceeds from selling your present home to the retirement savings, as you considerably bring down maintenance costs.

The probable savings, on the basis of the Center for Retirement Research’s estimates, are convincing. In case you are moving from a $250,000 house to one worth $150,000, for example, you have net $75,000 for adding to the savings, after you pay moving as well as closing costs, which usually amount to 10% of the selling price.

Moving in line with peers

Relocating can also assist you in reducing expenses in case you are moving to a place which has cheaper living cost and lower taxes. Opt for places which have good transportation services for the aged, public transit, as well as bike-friendly, walk able neighborhoods which are close to medical facilities and a short distance from stores and entertainment. AARP is now building age-friendly communities in many places such as Des Moines, Denver, Birmingham and Westchester County in New York.