As you approach retirement, your thoughts will automatically shift from saving your pension to how you will utilize it. Retirement funds need to be utilized wisely as, unless you have a part-time job, this will be your main source of income for a long time. This requires you to pay special attention to drawing up a spending plan. This plan depends on your lifestyle. How do we wish to live? Lavishly or frugally? The best way to utilize your pension is to live within your means without too much overspending and to consider proper options. This does not mean you should compromise on various aspects of good living. Below are a few methods that can be considered in using your pension funds wisely, so that it lasts a long time.
Spending Plan
This requires you to consider income against the expenses you may or may not incur in the future. For example, your spending plan needs to include expenses that may be incurred in the case of an illness. Drawing up this plan does not require a degree. All you need is time and paper and a pen. Sit down with your significant other and do the best you can to ensure you do not overspend your nest egg so that your funds stretch for a long time.
Deposit in Savings
Make plans to save at least 40% of your pension in a savings account that can be withdrawn for a rainy day. It may be a difficult task, but you will be glad you did so if you or your spouse need any surgery or hospital stay. Look around for the best method of saving and ensure that you get a high rate of interest on your savings.
Take on Medical Insurance
One of the best ways of using your pension funds wisely takes on medical insurance which you are eligible for with your pension. As old age sets in, you may fall ill more often than before. Being prepared for this occurrence is always a good thing to consider. This way, you will not spend all your funds on medical bills. Make sure you have filled out all the relevant forms that entitle you to this insurance cover.
Buy Property
Many seniors consider buying a property with their pension funds. This too is an excellent move. For many years, this has been one of the most successful and secure ways of growing investment value. The purchase of property is a good idea as the value of the property is always increasing. You will be able to buy the property and sell it for a higher amount and reap the benefits.
Speaking of buying property, you can consider buying a home in a retirement community. This move will not tap into all your resources as there are many homes in various communities that cost as low as $150,000. Your pension funds can be saved significantly if you lived in an active adult community. This is because you do not spend on entertainment and gym memberships etc, as most communities feature clubhouses that enable you to use their pools, gyms, and other amenities for free. Furthermore, some communities are energy efficient and this means you save money on your gas bills. Why not put some of your pension funds into an active adult community and enjoy your life in the process? Below are some communities to consider.
- • Trilogy® Bickford by Shea Homes – Lincoln, CA
- • Restore at Carolina Park – Mt Pleasant, SC
- • Woodside – Aiken, SC
More communities can be found by visiting our website ActiveAdultLiving.com. This is a website featuring more than 8,500 communities that you can choose from. It is easily accessible and extremely comprehensive. Visit this website and find the retirement home you wish for.
