The cost of living is very high for retirees on a fixed income.
And retirement can be a very expensive proposition if you have no savings or plan.
Consult a retirement specialist to discover if you have viable options relative to your circumstances.
But here are five ways to incrementally and cheaply start your retirement.
Move-in with friends or family
Instead of being in a situation where living in a retirement home becomes a viable option, consider who you might be able to live with.
Consider which trusted relatives or friends you may be able to live with or become roommates with to cut down on living expenses.
Don’t make such a decision trivially. It’s hard to live with other people when you may be used to living independently on your own terms. Audition people or live with them for a trial period before deciding.
Move somewhere with a much lower cost of living
The average retiree must make at least $45,00 to $60,000 annually to live in large metropolitan cities with a ridiculously high cost of living standards.
There are many affordable American cities where you can live if your annual expenses range from $38,000 to $55,000. If you can live in a small town, your expenses will be a lot less.
If you make $20,000 to $40,000 annually, you can live comfortably for multiple decades in a stable developing country.
Many countries offer visas to American expatriates with a pension or regular income.
If you can’t see yourself leaving the United States or your home city, that is fine.
But you may want to consider downsizing your life. Sell your home and valuable possessions and live in an apartment.
Retire a little later
Consider waiting to retire for as long as possible to optimize consistent income flows.
You could live on a fixed income, pension, savings, and side hustle earnings for as long as possible.
If you wait until 70 to start claiming your Social Security benefits, then you will receive the equivalent of 132% of your monthly benefit when it starts.
Stay on budget
If you are living on a fixed income as a retiree, then you need to know how much money is coming in and your expenses down to the penny.
Keep a weekly or monthly budget. Stick to it. And adjust it as necessary if your personal finances change.
A budget can tell you if you are spending money responsibly or where you can cut wasteful spending.