How To Reduce Living Costs In Retirement

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Although you’ve probably been saving for a while, the thought of your healthy stream of income drying up when you retire can be daunting and nerve-wracking, to say the least. A budget in place and a financial plan will help ease those nerves going forward, but it’s also a great idea to evaluate your living costs at the moment and decide whether there are areas that can be reduced. 

Downsize Your Home

The family home will always have a special place in your heart, it’s been the backdrop of any milestones and memories throughout your life, and you’ve probably spent years creating a space that you love. When life moves into the next chapter though and the rest of the family are all grown up, is it really necessary to keep all the square footage you have and would it be easier to downsize your home?

Downsizing will mean your financial obligations are immediately reduced as you don’t have the expense of running a larger house every month. If you opt to by a less expensive house then the one you are selling, you’ll also have a wonderful rainy day fund that will keep you secure. You can either save it as a nest egg for your children to inherit or use some of the funding to go and travel the world. Either way, you’ll definitely be reducing your cost of living. 

Switch Your Utilities To A Cheaper Alternative

If you don’t feel like downsizing is the right path to take just now and have always hoped one of your children might eventually move into your home, there are still ways to reduce your cost of living while staying routed in the one place you love. 

Look into how your utility systems can be updated; there are plenty of energy-efficient alternatives to choose from these days. Simple tasks like replacing lights with energy-saving bulbs can be a great starting place to make a difference before looking into larger changes and renewable alternatives. Solar panelling on the roof is an option that should be researched, and even wind turbines can be installed into residential gardens. 

Embrace Life on The Road

If this new chapter in your life means you ready for a whole different adventure altogether, why not consider selling up and embracing life on the road. Motorhome and camper van living is becoming increasingly popular with individuals who are retired as it will massively reduce the cost of living. Yes, there will still be some financial obligations to undertake, you’ll need to tax your vehicle and keep up with any maintenance issues throughout the year, but you’ll be freed from the expensive financial commitments of owning your own home. 

You’ll have the opportunity to follow the good weather throughout the year and experience life in different parts of the world. If you’d prefer to stay rooted in one location, however, there are plenty of camping sites that offer seasonal passes that will also provide those extra amenities you may need. 

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