With retirement comes extra time for rest, relaxation and finally doing all the things you have always wanted to do. It is also a time for getting used to a new income, and adjusting your lifestyle to suit it. Although this can mean making sacrifices for some, leaving the workplace also has its money-saving perks.
Here Are 6 Ways You Can Save Money After Retirement:
- No Commuting Costs: you save money on your transit passes, gas and parking, not to mention all the time spent commuting.
- Pay Less for Car Expenses: for some, leaving the workforce might mean being able to have one less car in the household. This will save you on any maintenance costs, gas, insurance and routine checkups. You can put the money that you make off the car in an account for emergency funds or a mini-vacation.
- Freedom to Move: Not having to worry about the proximity to your workplace can mean being able to relocate to the countryside, cottage country or that small town you have always dreamed of living in. If you move further from the city core, you will likely be able to find a less expensive property AND you could stand to gain some income from selling your home (especially if you are in Toronto’s core!).
- Spending Less on Travel: although many people end up spending more time travelling after they retire, they are getting more for their money. You can travel during off-peak times and can book a mini getaway for say, a Monday to Wednesday instead of a Friday to Sunday, saving up to 50 per cent off the price of the trip. Many companies also offer senior discounts, if you meet the age requirements.
- Flexible Hours: You can take advantage of doing things earlier in the day, too. You can save money by going out for lunch dates instead of dinner and catch matinees and early showings to save even more since you are not at work during weekdays.
- Spend Less on Clothing – without having to wear designated career attire every day, you can save money on your wardrobe. For some, this can mean savings on expensive suits, shoes and dry cleaning.
With the Potential to Spend Less on Work-Related Items, Other Expenses Can Result in Extra Costs:
Although as Canadians, we enjoy free healthcare, there are still a lot of medical costs that can add up as we age. Having money for things like dental costs, hearing aids, glasses, in-home caregivers, mobility equipment, etc. is important.
If unexpected substantial costs come up, they can affect your budget and your ability to live the lifestyle you are preparing for.
Living with a new income can take some getting used to, so do some honest accounting and consider your expenses. It can be a very exciting time – make the most of it by making your money last.
If you are in a position where you are looking to downsize, or simply move to a new home, I would be happy to answer any questions you have. Feel free to give me a call at 416-921-1112.