6 Tips to Fight the Effects of Inflation in Retirement
For many retirees, this new phase of life means living on a fixed income for the first time. As inflation and the cost of living continue to rise at their fastest pace in over 40 years, enjoying a comfortable retirement may be becoming more difficult.
Inflation and a fixed income can be a challenging combination. For older homeowners looking for ways to stretch their dollars further, the following tips may help:
Embrace the benefits of age. Arguably one of the most enjoyable perks of growing older? The senior discount. From groceries to travel to entertainment, many retailers extend a significant savings to older customers, usually beginning at age 55. Do your homework before making a purchase or a reservation, as the savings can be considerable.
Become a one-car household. Is the convenience of two cars worth the cost? If you or your partner are no longer commuting to work each today, you may be able to save on a car payment, gas and insurance by selling one of your vehicles. And with used vehicles in short supply right now, you may even get a generous payout from the sale itself.
Stay active. Some health-related costs can be inevitable — and at times, astronomical, consuming a projected 52% of the average Social Security check by 2030.
What if you could potentially minimize future costs by staying active for as long as possible? A mix of aerobic exercise and strength training can help prevent obesity, high blood pressure, stroke, heart attack and more. Older adults should aim to do at least 150 to 300 minutes of moderate-intensity activity a week, as well as muscle-strengthening activities two or more days a week.
Work longer. Keeping one foot in the workforce can help combat the fear of not having enough money. Roughly 29% of U.S. workers ages 61-66 plan to reduce their work hours as they transition to retirement. This strategy can also help to maximize your Social Security benefits. If you can delay collecting benefits until you reach your full retirement age or up until the maximum threshold of 70, your monthly check will be greater than if you begin receiving payments early.
Sell what you don’t need. Retirement is a new beginning — and a great time to get rid of belongings that no longer suit you. From dated tech tools and excess home goods to your business wardrobe, parting with unnecessary items can help free up cash.
Reassess the place you call home. To save money, there’s always the option to downsize or move to a more retirement-friendly area. As an older homebuyer, a reverse mortgage for purchase can potentially help you buy a new home (whether that’s a single-family home, multi-family dwelling or condominium) using, for example, the proceeds from the sale of your existing home.
To hedge against inflation, reverse mortgage loans are also available on your current home if you’ve built up enough equity. Unlike traditional mortgages, this type of loan doesn’t require monthly payments. You can pay as little or as much as you want — when you want. Just be sure to stay current with loan obligations, including property taxes, insurance and maintenance.
We’re living in uncertain economic times. But that doesn’t mean you have to forgo your retirement plans — there are better days ahead. Contact Reverse Mortgage Funding LLC (RMF) at (888) 277-1567 to learn more about the benefits of a reverse mortgage. Our loan specialists look forward to working with you.
This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans live the retirement lifestyles that they imagined and deserve, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 5-star / Excellent score on Trustpilot; 4.5 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call (888) 277-1567 to speak with one of our experienced reverse mortgage specialists to learn about our retirement financing products and solutions.