How to Spend within Limits After Retirement
Many of us might have spent close to four decades of our active life working and being productive. 95% of people across the world are employees and work for somebody. Their active employment life perhaps stars at around 20 while for others it could start around the age of 25. This is because they might go in for some higher studies and this may consume another four to five years of their life. However, once they enter the job market, they are there till they reach superannuation. Most of us reach retirement age and it could vary from organization to organization. It could be around 58 years for a few while it is 60 years for the most. There are a few organizations that have 65 as the age for retiring.
Saving For The Future Is Important
When we reach the age of retirement, it is quite obvious that our ability to be productive gets reduced quite significantly. We may not be in a position to earn the same money and create the same wealth that we have earned when we were in our prime. It is therefore important for us to save as much money as we can during our productive and active life. We also should invest the saved money intelligently and safely. This will ensure that we have a decent corpus available with us post-retirement.
Some Expenses May Go Up
It is quite possible that some expenses might go down once we reach retirement. We may pause and stop spending on food, wine, drinks and perhaps even on women that we may have done when we were young and of productive age. However, there are some expenses that might go up once we have reached the age of sixty. Medical expensive most certainly will go up and we should be well-prepared for this. The money that we may have spent on medical treatment during your youth and middle age might go up quite significantly once we are on the wrong side of fifty. Hence, our retirement savings and financial plan should be in such a way that this aspect is to take care of as best as possible.
Cut Down On Expenses
Beyond the age of sixty when our main source of income may have come to a grinding halt, we certainly will have no other option but to dip on our savings and retirement corpus. We should ensure that the corpus gives us a decent return on a monthly basis. This will ensure that we are able to take care of daily expenses. If we are working male we should bear in mind that we also will have our spouses to support.
While we should not compromise on our quality of living, there are some expenses that we could cut down. For example, it may not be a bad idea to move to the countryside where housing expenses are less. Further, we should stay away from wasteful expenditure on eating outside beyond a point and wasting too much money on cinemas and other such things. Instead, we could have a method by which we are able to see the movies in our homes. Bringing down expenses on fuel and energy on vehicles could also be considered.
The Final Word
There is no doubt that retirement is there for enjoyment and relaxing and doing things that you perhaps could not do when you were earning money for you and the family. You certainly can make use of your leisure time for this purpose.