Tips to Enhance Retirement Income

While combination life insurance-long term care products can cut the cost of long term care insurance, that alone may not be enough to feel comfortable with the retirement income that is now available.

The market volatility has impacted many retirees. With account values dropping so rapidly, it makes it difficult to rebuild the value of the nest egg. Retirees also find it challenging to maintain a consistent monthly draw from their retirement nest eggs for fear of depleting the account too soon.

There are only two ways to resolve the challenge. There either needs to be an increase in the monies that are in the retirement nest eggs or a reduction in the monies being drawn out each month.

So, if going back to work is not the favored option, then we need to look for ways to reduce monthly expenses. Here are some tips to help make the process smoother.

Categorize expenses

Some expenses are mandatory, while others are optional. We should make sure that mandatory expenses are covered first, and optional expenses are included as finances allow.

Mandatory expenses would include such items as mortgage or rent payments, car payments, utilities, and food. Optional expenses might include eating out, vacations and trips, and other forms of entertainment.

Scaling back

When we realize that we have to scale back our spending, the easiest place to start is with our optional expenses. Are there things we can cut back or eliminate altogether?

Home and car maintenance

During working years, there are some household tasks that may have been easier to delegate to others than to try to squeeze into the schedule.

For example, some households hire out for yard maintenance or housekeeping. Some households pay for car washes or car detailing. In retirement, it can be more cost effective to do the work rather than to pay for it.

Reading material

We may have gotten hooked to our subscriptions to various publications over the years. It has become so much a part of our routine that we don't think much about paying the annual renewal fees.

However, in an age where the world is practically only a click away, so much of the information is now available online. The need for newspaper and magazine subscriptions has become less important.

When looking for areas to cut back on spending, even book clubs may be seen as questionable. Unless there is a novel that we intend to use as a reference or we plan to read the book more than once, the local public library can be an alternative to purchasing many books over the course of a year.

Senior discounts

Retirees have many opportunities to take advantage of their maturity. Many restaurants offer discounts to seniors. Even fast food restaurants have unadvertised senior pricing.

Some grocery stores and retail stores offer senior discounts on certain days of the week. Many entertainment venues offer senior rates. Utility companies offer discounts.

Again, quite a few of the discounts available are not advertised but will be honored if mentioned. Seniors should not be afraid to ask.

Retirement is a season of life meant to be enjoyed. Let's not let today's economic challenges steer us away from that. With careful planning and some simple sacrifices, retirees can look forward to many years ahead.