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Our attitudes to the prospect of retirement have undergone a shift in the modern age. With regular pension checks not always guaranteed and lower interest rates for savings, sometimes it may seem like we need to work even harder at a successful retirement than we ever did before.

plan for retirement

But worries over retirement can be largely eradicated when adequate planning and preparations are made. Here are some tips to help make retirement more affordable, leaving money left over for the good things in life we've worked hard for:

Get online

The time of the silver-surfer has arrived. Retirees suddenly have a lot more time on their hands, and many of them are choosing to spend it online. It's a good place to start looking for deals and savings on all sorts of items such as cheaper fuel, food and insurance. Just about anything that used to be bought face to face can now be purchased online, and with significant cost savings. Those who lack energy to traipse around looking for the best deals now head for cost comparison sites on the internet that do their legwork for them. Research is key to making savings, and with the internet it is simple. Make friends with the internet and benefit from the whole new world of cost savings, entertainment and opportunity it offers.

Where to live

Many retirees like to live close to family and friends so they can get to see them more. However, this may not always be the most affordable option. Travel costs, especially flight expenses, have dropped in recent years, making it more practical to consider living further away from home and making regular trips back. Be sure to look into plans for the future about where to live, and check out senior living communities that offer lifestyles that reflect your needs and desires.

For many retirees the equity in their home is put to good use in funding retirement plans. Through downsizing and moving into more manageable accommodation, funds are freed up to spend elsewhere. Don't overlook the value in bricks and mortar, as liquidizing such assets may be the best thing to do for a comfortable retirement.

Tax tips

The over 65s typically pay less tax, which is good news for retirees. It is important to get financial advice and to plan and prepare for tax issues in retirement to make sure the most efficient decisions are made. Several states in the US do not tax personal income or have no state income tax – both real perks if the pension pot is large. Ask a qualified tax and financial planning expert for the latest, best advice on retirees tax affairs – it could be a pleasant surprise.

The perfect plan


Plan a retirement budget before actually stopping work. Be realistic about the expenses anticipated, and stick to targets once they have been decided. Financing future costs, such as health care (including long term care), should be factored in. Taking risks with retirement funds is not a good idea – going to Vegas and putting it all on the roulette wheel, or investing it in other high risk ventures, is inadvisable. Gauging what retirement expenses are likely to be can be quite difficult, but generally speaking we tend to be less extravagant and more prudent once we retire – although there are always exceptions to the rule! Planning for a sensible and achievable retirement budget is the best way to avoid nasty surprises in the golden years.

Reduce spending at home

Forget all those stories about retirees living frugally in misery. There are ways of living a frugal life without it having a negative impact at all – quite the contrary, money can be saved and the planet benefits to boot! Save on water, power and electricity bills by adapting the home accordingly with insulation, water saving faucets and energy efficient household appliances. Those lucky enough to live in a sunny climate should look into solar energy – again, over time, the investment for solar panels more than pays for itself. Who can argue against free power?

Never say never

Some people retire and then find they miss the social contact and mental stimulation they obtained from working. Taking on a part time job is something many retirees do, finding it a good way of socializing and keeping a steady trickle of money coming in to help the retirement coffers. Don't totally rule out working again; it has been proven to boost cognitive power and agility in the elderly – both attributes we could do with preserving for as long as possible!

Retirement should be a time we look forward to with happy anticipation, not quiet dread. If we plan in advance how we are to finance our retirement, the chances of our later years being contented are greatly improved.

About Denny Jones

Hi there! I am Denny, a personal finance blogger and I love to share tips related to managing finance for a better living. Follow my blog for lots of fresh and exciting tactics to control your finances.
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