Ways to cut costs during retirement

The average person spends more than 50 years in the employment sector. As retirement draws closer, many professionals plan on giving up the commute and have more time to pursue their personal interests. Even if planning for retirement has been many years in the making, it can take some time for people to become acclimated to having less income. Housing, transportation, health care, and food are some of the biggest bills retirees will have to account for. Aiming to have savings in addition to any other retirement income or government subsidy to cover that amount is a step in the right direction.

People can make their money go further by making an inventory of their spending and some cuts where possible.

• Know where the money is going. It's impossible to save without knowing monthly expenses. Many people are surprised to learn how much little things add up over the course of a month. For example, spending money for a take-out coffee each day can quickly become an expensive luxury. Add all expenses and see where they can be cut back, especially if there is a deficit each month.

• Considerextrahealthcare.Medicareparticipantscanchoose Medicare Supplement Insurance plans to help reduce out-ofpocket health care costs. Medicare Parts A and B only cover some of the health care costs. Supplemental insurance can cover some of the costs not covered by original Medicare, like copayments, deductible and coinsurance.

• Pare down on possessions. Take inventory of personal possessions and scale back where possible. If the commute to work is no longer required, people may be able to become a one-car household. Also, downsizing the residence can help older adults avoid spending too much of their retirement time and money on maintenance.

• Take advantage of senior discounts. Older adults can usually save on restaurants, travel, groceries and more by simply shopping on specific days or verifying their age when checking out.

• Purchase less expensive life insurance. The purpose of a life insurance is to replace income to ensure the financial security of dependents in the event of death. Some older adults may have no dependents and little income. Therefore, a large life insurance policy may not be necessary, especially if the funds to cover funeral costs have already been set aside.

—MetroCreativeConnection