How to Manage the Highest Spending Category in Retirement – Be Creative!

Its not unusual to read in the news about studies which predict the next financial disaster ready to hit retirees and seniors.

Recently I read an article about retirement, and how the figures show that spending for seniors decline the most after the age of 65. The interesting (and most useful) piece of information from this graph, is that the amount of money put out for housing stays about the same from when we are age 45 to the end of our days.

What happens if your pension fund goes under, or severely cuts their payouts to you? Or, what if some other torpedo expense hits your savings?

One of the things you can do to take charge is to monitor – and be willing to change – your conventional housing choice.

Paring down to a smaller home, moving to a state that is tax-friendly, moving overseas where cost of living is more manageable, renting out a room, a section of your home or a casita can bring in extra cash should you find yourself needing to supplement a pension that has gone sour.

Considering a roommate, or perhaps joining financial forces with your children to have an “in-law’s unit” built as part of their home so you have a place to live that is close to your family are also alternatives.

Living on a boat, utilizing an RV as your domicile, or choosing your Active Adult Community manufactured home as your chief domicile are also more affordable options than a 4-bedroom, brick-and-mortar home with the maintenance costs, insurance and high property taxes.

There are so many more attractive choices today for housing than ever before.

The most important thing is to have your plan B – and to start thinking about that NOW, instead of waiting for a financial disaster to come and blow you out of the water.

 

About Retire Early Lifestyle

Billy and Akaisha Kaderli retired two decades ago at the age of 38 and began traveling the world. As recognized retirement experts and internationally published authors on topics of finance and world travel, they have been interviewed about retirement issues by The Wall Street Journal, Kiplinger's Personal Finance Magazine, The Motley Fool Rule Your Retirement newsletter, nationally syndicated radio talk shows and countless newspapers and TV shows nationally and worldwide. They wrote the popular books The Adventurer's Guide to Early Retirement and Your Retirement Dream IS Possible.
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