Smart tips to stretch your retirement nest egg
With the high standards of living in Singapore, retiring from your job might seem like a life-changing event. But that shouldn't be the case. Retirement is supposed to be a time for you to enjoy the fruits of a long productive life, not a period when you're plagued by money woes. So here are some tips on how to stretch your retirement nest egg so that you'll be able to enjoy your golden years the way they should be.
Change your spending habits and lifestyle
While retirement shouldn't drastically change the way you live, there are certain adjustments you can make to your lifestyle to lower your expenses. Topping the list is not smoking. Not only does quitting save you money that can be better spent, it's also good for your health. If you are paying high membership fees at a fitness club, cancel your membership and form your own informal fitness group instead. By doing so, you'll save money and get the chance to meet new people and make new friends.
Take advantage of your status
Being a senior citizen and retiree has its advantages, and these come in the form of senior discounts on almost everything from transportation fees to movie tickets. While it might not seem like much, these reduced rates are potential savings that can go a long way in stretching your retirement dollars. So plan your outings on days that will allow you to make the most of these special rates. That way, you'll be able enjoy the activities you love and save at the same time.
Consider a working retirement
Reaching retirement age doesn't necessarily mean you have to stop working. If you find your occupation fulfilling and rewarding, don't quit. Having a working retirement not only provides a steady source of additional income, it also enables you to enjoy medical and dental benefits that will stretch your retirement savings.
Think about downsizing
With the housing prices in Singapore, our biggest asset is the property we own. If you determine that your retirement income exceeds your expected retirement needs, you might want to consider downsizing to a smaller house if your family does not need the space. That way, you can add to your retirement nest egg or use the extra funds to invest in annuities that will give you returns.
While following these tips will help to stretch your retirement nest egg, the best way to ensure that you are financially prepared for retirement is to save as much as you can, and as early as possible. At the same time, you should reduce on any unnecessary expenses that could go towards growing your retirement fund. You should also work with a financial planner who will assess your retirement readiness and get you the most out of your available resources.