How to Make Your Money Go Further in Retirement
In 2019, enjoy a secure and comfortable retirement is far from a given. Whilst a recent poll of Canadians revealed that most people think they’ll need around $756,000 saved to enjoy a comfortable retirement, the fact remains that a shocking 32% of Canadians are nearing retirement without any savings whatsoever. If you’re one of the many who is harboring concerns about your current retirement savings, its time to learn how you can make the most with what you have. Whilst accumulating wealth during your working life is important, knowing which adjustments to make once you’ve stopped working is equally crucial. Here are the most effective ways to make your money go further during your retirement.
This first step may seem like the most drastic, but it’s also the most effective. Whilst you may be thinking of downsizing or moving to a cheaper neighborhood, going farther afield is actually the best way to make your money go further. Living costs in Canada and the US are sky-high, so imagine how much further your money could go if you moved to a popular retirement hotspot like Panama or Thailand, places regularly ranked as the cheapest destinations to retire in the world?
Deal with Debt
The number one drain on your resources in retirement will be debt if you haven’t been able to clear it. For this reason, you’ll want to make clear any debts your number one priority, particularly if you’re holding high-interest debts such as credit card loans. You should also pay a visit to a financial planner as soon as possible to discuss options for restructuring your existing debt, be it in the form of debt relief or remortgaging packages.
Reduce Recreational Costs
There are countless ways to ensure that the money you spend on recreation and entertainment goes significantly further. One illustrative example of how to approach this is with online casino gaming. Rather than playing like you normally would, you can visit a casino like Quatro. With 10 years of experience in Canada, Quatro allows users to retrieve a 100% matched deposit bonus. This means that you’ll be doubling the money you have to spend recreationally without dipping into your own bank account. Keep an eye out for deals like this in all of your recreational pursuits.
Put Your Money to Work
The worst thing you can do with the money that you have is to allow it to just sit there in a low-interest, low-yield savings account. Even a 401K or similar plan is far from the optimum way to ensure your money works for you. Always have a portion of your assets invested in low-risk vehicles such as dividends and bonds, ideally aiming for a ratio of 50% on living costs, 30% on investments, and 20% on personal use. The 50/30/20 ratio is a well-established rule of thumb when it comes to making your money go further, one that is just as useful during retirement as it is during your working years. The last thing anyone wants is to spend their golden years scraping together pennies. Follow these tips now, no matter how close you are to retirement.