How to reduce the cost of retirement

Changes that will have a big impact on your retirement

10:03 10 August 2014

There are several avenues available for retirees to reduce their bills and positively impact their spending power.  

 

Consider the following frugal ways of cutting back your monthly bills in retirement.

 

Firstly, retirees can make use of the ability to travel during off-peak times. Retirees are flexible enough to travel at the time that best suits them. You will be able to enjoy less costly travel packages if you avoid travel during 

school holidays and in major holidays. Most tourist destinations are more or less deserted during off-peak times and thus you will be accorded better treatment at cheaper rates.

 

Health care cost is usually unpredictable and normally the biggest bill in retirement, but there are things you can do to minimise health care bills. You can buy a supplemental policy as opposed to Medicare as the former would accomplish 

some of the cost sharing requirements that the latter won’t provide. Avoid auto-renewal of health policies and buy one every year to make sure that you get your bills covered at the right cost.

 

You can also reduce your bills in retirement by enjoying services at senior citizen discounts at amenities such as movies, restaurants and museums. There are well stated senior discounts for everyone who is aged enough at various facilities. Other facilities will however only present the discounts if you ask. If you can be in possession of a Senior Rail Card, then you can realise huge savings with senior discounts.

 

Retirees can also save money by avoiding retirement penalties. You will be subjecting yourself to huge penalties if you elect to withdraw funds from your account either too early or too late. Always pay attention to the various retirement cut-off dates so that you don’t end up paying more than you have to.

 

Strive to make these changes and they will have a profound positive effect on your retirement bills.