Many people are looking forward to retirement with mixed emotions.
On the one hand, they are excited about finally getting out of the 9 to 5 rat race (which, let’s face it, is usually more like 8 to 6). They are looking forward to relaxing more and to finally starting some home projects they haven’t had time to tackle due to their fulltime jobs.
On the other hand, some people are nervous about having enough cash in retirement once those regular paychecks stop coming. Nobody is sure how long they will live, so it’s impossible to know if the money will last.
Fortunately, there are some savings to be experienced once we retire, as long as we’re willing to sacrifice a little bit. Some of these savings are in terms of time, some are in cash, and others involve both. Let’s take a look at six of them:
- Car. Assuming you and your spouse both own cars, this might be the time to sell one of them. Sharing a car with a spouse isn’t so bad when one or both of you spends a vast majority of time in the home.
- Clothing. Few of us dress as well at home as we do at the job. Not having to purchase work clothes anymore should save some bucks.
- Housing. If you’ve paid off your mortgage during your working years, then staying put might be your best option. But if you’re not close to accomplishing that, consider downsizing to a smaller house, condo or apartment.
- Commuting. Unless you worked at home, you probably experienced commuting costs in terms of train fare, gasoline, wear and tear on your car, etc., during your working years. Retirement will eliminate these costs.
- Senior discounts. Some places of business, including restaurants, offer discounts to folks when they reach retirement age. Take advantage of them. You’ve earned it.
- Tax rates. With less income comes fewer taxes. Ask your accountant to show you how to time your retirement account withdrawals to incur the fewest fees possible.