Renae Diggles

March 26, 2020

Saving Money For Retirement

Renae Diggles

March 26, 2020

Saving Money for Retirement: Ways to Manage Your Money

There are many facets to retirement. A major consideration is saving money for retirement and ways to  manage your money. Along with a solid financial plan, looking at ways that you can save a little extra for retirement is important.  So many people pay for goods and services that they no longer require as they get older. Here are some things to consider to help you reduce the expensive parts of your financial life.

Cost-Cutting for Retirement

In order to cut costs, it’s always advisable to update your budget.  Factor in that food prices continue to rise. Also consider that insurance premiums inevitably increase. Additionally, the general cost of living continues to rise each year.  According to UBank CEO, Lee Hatton, “While there’ll always be some costs we can’t plan for, it’s important budgets are created and stuck to, to minimise potential stress in the future.” When you draw up a budget, be sure to account for everything. This includes accounting for inflation. Once you know how much you need to budget, you can look at where you can cut back on costs.

Updating Your Insurance Plans

Whether it’s car insurance, home and contents or health insurance, your needs will change over the years. This will mean that your insurance needs will change too. Contacting an insurance broker or your insurance provider to re-evaluate your current insurance plans could save you a lot of money. Many people discover that they’re paying for insurance plans that just don’t suit their needs anymore. For example, many older Australians are receiving top-level health insurance that covers them for services such as obstetrics. There can be large savings in choosing a health insurance policy that’s right for you. Take a look at all the insurance contracts that you currently have and work out what services you actually need. Many people discover that they’re paying much more for a service that they aren’t making full use of.

saving money for retirement: accounting balance sheet and calculator

Deleting Your Subscriptions

It’s common for people to have old subscriptions to services that they don’t really need. For example, you might have been receiving the Reader’s Digest for years, or have a subscription to a website or app. At this stage of your life, it’s time to consider whether these subscriptions are really important to you, and then consider cancelling them to save money if they no longer add value to your life. You could even think about reducing a subscription to save money if it’s a service that you still really enjoy.  Reassess what you’ve signed up for and seriously think whether it adds value to you now or is it just something that you’ve always done.

Understand Your Entitlements

Retirees are eligible for a number of benefits and concessions in Australia, which can be highly beneficial to those looking to reduce day-to-day costs. Understanding what you’re eligible for and taking advantage of it can reduce important costs, from transportation through to health, and even entertainment. Below are just a few main entitlements to be aware of:

National Seniors Card:

Offering different benefits in each state, a Seniors Card provides a reduction in public transport costs, as well as offers and deals on select goods and services. Eligibility is reserved for those aged 60 or older.

Commonwealth Seniors Health Card:

A Commonwealth Seniors Health Card is offered by the Australian Department of Human Services. This card provides Australians of pension age (65 +) with discounted medicines, savings on Great Southern Rail services, and lower electricity and gas, and property and water rates depending on the area you live in.

Pensioner Concession Card:

Eligible to all who receive payments from the government such as Age Pension, Bereavement Allowance and Carer Payment among others. Benefits include cheaper medicines, bulk-billed doctors visits as well as assistance when using hearing services.

While these are the main government-related entitlements, remember to ask any service provider you’re using if they have benefits for seniors or pensioners. Often travel insurance companies, restaurants and even national parks will have certain benefits for those aged 60 or older. If you don’t ask, you won’t know!

While saving money in retirement may seem like a chore, these are just a few simple ways you can cut back without it taking a toll on your lifestyle or health needs. You may just find you’re spending money on a service that is no longer giving you any value or pleasure.

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