Crucial Tips for Downsizing Your Budget During Retirement

Summary: Downsizing your budget during retirement can feel daunting, but with proper planning, you’ll maximize your income and improve your quality of life. Making a checklist can help, as can working with professionals and communicating with family members. Estimated Read Time: 28 mins

Table of Contents

• Review Your Monthly Income
• Baby Boomers Money & Retirement Checklist
• Preparing for the High Cost of Long-Term Care
• Types of Income Sources When Retired
• Review Your Monthly Spending Habits
• Consider Lifestyle Changes
• Understand The Cost of Your Residence
• Create a Downsizing Plan For Your Home
• Work With a Financial Planner
• Taking Care of Yourself is Key to Balancing Your Retirement When Downsizing
• The Benefits of Downsizing Your Budget During Retirement

Budgeting for retirement begins decades before you reach your golden years. If you don’t prepare early, you’ll wish you had. Without a strict plan, you may have to live a more frugal retirement than anticipated. Yet, as the cost of living continues to increase, even those who did their due diligence in their early years are beginning to see a financial strain during retirement. However, downsizing your budget in retirement doesn’t have to be daunting. By following a few simple steps and ensuring not to overspend in unnecessary avenues, you can live your best life on a budget after you exit the workforce.

There are several scenarios in which living a fulfilling retirement can be done on a budget. Retirement goals like becoming a snowbird can be easily obtained on a fixed income if you review your income, limit your spending, and create a plan. Below, we examine how you can better budget for retirement, meet your lifestyle goals, and get the most out of your golden years.

Review Your Monthly Income

Reviewing monthly income is essential for anyone preparing for retirement, specifically when downsizing your budget. As retirement approaches, it’s necessary to determine how much income will be available each month to cover living expenses. This requires taking a close look at all potential sources of revenue.

You should review your monthly income to ensure there is enough money to cover all your basic expenses. Without a steady stream of income or a proper savings plan, it may be challenging to pay for things such as housing, food, and healthcare.

Downsizing your budget is a common trend among retirees, but what is often lost is remembering how spending changes as you age. Reviewing monthly income can also help plan for the future, but you need to account for increased healthcare costs or long-term care. By understanding monthly income, you can make informed decisions about your future plans and ensure you have enough money to live comfortably throughout the golden years.

Another reason to review monthly income is to identify potential gaps or shortfalls. Many retirees have a fixed income, and it’s important to make sure that income will be enough to meet their needs for an extended period. If your monthly income falls short, you may need to find ways to reduce expenses or increase your income through investments or other means. It’s better to identify these gaps early on so that you can take proactive steps to address them before they become a significant problem.

By reviewing your monthly income, you can determine if budget adjustments are necessary or consider additional sources of income, such as part-time work during retirement. As you can see, reviewing monthly income is a critical step in preparing for retirement, and it can be essential in avoiding financial struggles and maintaining your quality of life.

Baby Boomers Money & Retirement Checklist

Retirement planning starts with knowing where you are now and how that compares to your goals. Whether you’re downsizing your budget during retirement or simply preparing for retirement, there are many different factors that you’ll want to review as you plan your golden years.

According to a study by the Alliance for Lifetime Income (ALI)¹, 51% of Americans between the ages of 45 and 75 don’t believe they have enough saved for their lifetime, and a third even believe they are unable to cover monthly expenses. This showcases the importance of planning and how many Americans may not be preparing as well as they should be. Below, we’ve compiled a checklist to help retirees better prepare for life after the workforce.

Saving and Investing

Baby boomers understand the importance of money and a retirement checklist. No matter where you are in your retirement planning, the next several years are the prime time for boosting savings, getting out of debt, managing your expenses, and taking concrete steps to prepare for the future.

• Take advantage of tax-advantaged accounts like 401ks and IRAs and contribute the maximum allowable amount each year.
• Understand the fees associated with each account.
• Invest your money in a mix of stocks and bonds that is appropriate for your age and risk tolerance.
• Avoid having more than 10-15 percent of the money invested in any one stock.
• Have an eligible high-deductible health insurance plan, and put the maximum amount into your health savings account each year.
• If self-employed, set up a company or individual 401K and contribute the maximum.
• Keep at least six months of short-term savings in an online savings account that offers good interest rates.
• Do not have too much additional cash that could build wealth better by being invested.
• Know how much money is currently in your IRAs, 401ks, and other investment and savings accounts.
• Calculate how much money expected in retirement based on your current contribution levels.
• Expected Income in Retirement (without working).
• Use the Social Security Quick Calculator and estimate your monthly Social Security income.
• Know how much pension income to expect to receive each month.
• Have an online calculator to figure out how much money to withdraw from investments each month in retirement.

Expenses

Your expenses will evolve as you age and will need to be taken into consideration when downsizing your budget during retirement. You’ll need to have a plan and track the different types of spending you’ll be doing. This means categorizing essential and non-essential spending, cutting back on unnecessary expenses, and sticking to your plan to ensure your money goes further:

• Know how much money to spend each month.
• Estimate ways spending might differ in retirements, such as fewer commuting costs, lower health insurance premiums, a smaller home, or more travel.
• Compare expected monthly expenses to expected monthly retirement income.
• Use software to track monthly spending by category.
• Do not have unused subscriptions.
• Call the cable company and try to negotiate a lower rate.
• Shop around for a less expensive cell phone plan.
• Identify other expenses to reduce or eliminate before retirement age.
• Seek discounts that may apply to seniors to save additional funds on the things you need.

Income

It’s safe to say that you’ll have a different form of income after retirement, even if you choose to work part-time. Furthermore, downsizing your budget comes naturally as you age in many ways as your income typically reduces. According to the Social Security Administration (SSA)², retirees will only have 46% of their income before retirement if they receive one retirement benefit, which only boosts to 60% when receiving multiple benefits. In other words, you’ll need to plan your income to avoid financial issues:

• Decide how much money you need or want to earn from work after full retirement age.
• Have a plan for earning additional income in retirement.
• Develop and maintain skills that help remain employable.

Debts

The last couple of decades have not been positive for seniors dealing with debt. A report by CNBC³ based on data from the Federal Reserve Bank of New York shows that seniors older than 70 years of age experienced a 543% increase in debt from 1999 until 2020. Keep in mind that this data doesn’t even account for anything beginning during the pandemic era. While manageable debt can be ok, it’s important to manage your debts accordingly in your golden years:

• Do not rack up new credit card debt.
• Pay off credit card balance(s) in full every month.
• Try to lower the balance and/or interest rate on existing credit card debt by calling the card issuer.
• Do not have a car payment.
• Do not have student loan payments for my own or my children’s education.
• If you have non-mortgage debts, pay them off as quickly as possible, starting with the accounts with the highest interest rates.

Housing

A great way to downsize your budget after retirement is to downsize your home. While this may not be feasible or a desire for some, it’s still important to understand the financial ramifications of keeping your home, selling your home, and passing down your estate to your family:

• Think about whether your current home is the best match for retirement.
• Know how much your home would sell for.
• Know the balance due on the mortgage, the monthly payment, the interest rate, and the amount of real estate taxes.
• Understand what you’ll spend on repairs, upkeep, and homeowners’ association fees.
• Investigate and compare the cost of other housing options.
• If you don’t plan to move, investigate refinancing for a lower interest rate.
• If you do plan to move, understand the best states to retire financially.

Long-Term Care

Maintaining your independence and health are goals every senior aims to keep a reality, but things happen, health conditions change, and as you age, long-term care may be necessary. Preparing for long-term care expenses can help you avoid unexpected costs in your golden years while budgeting for the healthcare and comfort you deserve:

• Understand the potential cost of in-home care, assisted living facilities, or nursing home care in your community, and note that this care is typically not covered by Medicare.
• Obtain quotes for long-term care insurance and decide whether and when to buy a policy.
• Investigate moving to a senior community that guarantees continuing care.
• Sign a healthcare power of attorney and living will.
• Discuss wishes regarding long-term care with your family.

Health Insurance

Health coverage continues to rise in cost as medical expenses increase as well. Even with Medicare benefits, there are several expenses you may incur when receiving healthcare services. You can enroll in a Medicare Supplement (Medigap) Plan to supplement your coverage, but you’ll need to account for the premiums. Furthermore, dental, vision, and hearing expenses are not covered by Medicare benefits. Planning for healthcare costs is an essential part of your retirement preparedness:

• Know the cost of monthly Medicare premiums, plus supplemental coverage.
• Be prepared to ask your agent any questions and know what to have when they call.
• If your employer offers retiree coverage, understand its cost.
• If you plan to retire before age 65, go to healthcare.gov and estimate what it will cost to buy health insurance until Medicare.

Family Members

Navigating money and family members is one of the most complicated balances you’ll endure in life. Yet, when you age, it’s important to have boundaries and a plan. Even if you aren’t downsizing your budget during retirement, to maintain a comfortable level of retirement income, you’ll want to set ground rules, devise a plan, and communicate your budget in a respectful manner with loved ones:

• Think about the financial and emotional cost of supporting adult children and aging parents while trying to work and plan for retirement.
• Do not give money to adult children who can support themselves unless you’re sure to have enough money for retirement.
• Do not take on debt to educate children.
• Know how much you can afford to spend financially and emotionally on family members.
• Speak with your children about your finances in a way that is appropriate to our ages and stages of life.

Relationships

Piggybacking off of the previous point, family members and money complicate things, and things are even more complex when it comes to finances and relationships. Working as a team should be the end goal of your retirement goals, and communicating effectively is key. According to Forbes⁴, the leading cause of “gray divorce” is financial issues. Having a plan can help your finances and your love life:

• Discuss money openly in your relationship and devise a plan.
• Agree on shared goals for retirement planning.
• Ensure you and your partner know each other’s net worth and credit scores.

Other

As much as you plan, it’s impossible to account for everything because things can change as you age. Furthermore, there are the little things that go along with planning for retirement you’ll need to account for. This checklist may not cover everything, but there are several miscellaneous items you won’t want to forget:

• If you are financially supporting children or a spouse, be sure to have level-term life insurance.
• Consult with an estate planning lawyer and have a will and/or trust and a durable general power of attorney.
• Meet with a financial planner to go over retirement goals, and be sure to choose someone who does not have a financial interest in selling you a product.
• File important papers (including computer passwords), and be sure a trusted loved one knows where they are located.

Preparing for the High Cost of Long-Term Care

Long-term care can include help with activities of daily living, such as bathing, dressing, and getting to the bathroom. Also, medication management, help with activities related to a health condition or even help with daily chores can be included.

Your long-term care can take place at home, in an assisted living facility (ALF), or in a skilled nursing facility (SNF). Statistics show that assisted living costs $45,000 a year, on average. Meanwhile, you can expect to pay at least $20 per hour for in-home help. Nursing home care costs much more, with the average semi-private room costing nearly $95,000 per year, according to the Genworth Cost of Care Survey⁵.

Many people wrongly believe Medicare will cover these costs. Yet, for the most part, it doesn’t. Medicare will pay for a limited amount of time in a skilled nursing or rehabilitation facility after a hospital stay. It will cover medical care and some home health services. But Medicare won’t pay for room and board or custodial care.

These non-covered costs make up the majority of long-term care expenses. Medicaid is another option to pay for nursing home care for seniors with limited assets. However, not everyone needs that level of care, and not every family wants to place their loved one in a nursing home.

When parents need long-term care, adult children can often feel caught in the middle in terms of what the best course of action is, along with the costs associated with long-term care. This comes during the same years when the pressure is on to maximize IRS retirement plan limits. If the parents don’t have the money to fully fund their care, the children face difficult choices.

Some people – particularly women – retire early to become caregivers to their parents. They’re no longer contributing to retirement funds and may draw a lower Social Security benefit at age 62 instead of waiting until full retirement age.

Other families reduce or stop their own retirement contributions, dip into their savings, or even take on debt to help support an elderly parent. With medical and long-term care costs continuing to increase, sacrificing your own retirement savings to take care of your parents is a risky plan that may even perpetuate a cycle.

This is why planning is key, and it’s important for those retiring to speak with their adult children about their retirement income, money, and other assets. Try to work together to map out a plan for their care in the future, and it may help to seek expert help from an elder law attorney that specializes in issues that affect older people, including wills, trusts, Medicaid, power of attorney, and veterans benefits.

Types of Income Sources When Retired

There are several types of income sources available when you retire. However, not all retirees see the same stream of income. Some may be more financially prepared than others when it comes to retirement, and even if you’re prepared to downsize your budget, it’s always a great idea to have a plan in place to earn a few bucks.

Retirement income can include pensions, Social Security benefits, savings, investments, and part-time work. Regardless of which income streams you will have available to you, it is important to budget wisely so you are not living above your means because people are living longer.

Today’s 65-year-olds can expect to live about five years longer than their great-grandparents who turned 65 in 1940. That’s five more years of “retirement” to finance. In addition to ordinary living expenses, today’s retirees face skyrocketing health care and long-term care costs.
Paying for a long retirement isn’t as easy for younger Boomers as it was for their parents or grandparents. In prior generations, most people who retired received pensions. But most workers today don’t have pensions – it’s up to them to plan for retirement.

The sad reality is that many simply don’t have enough money saved for retirement, with almost half of all Baby Boomers lacking any retirement savings at all⁶. Additionally, some people who took a big hit during the financial crisis a decade ago have yet to recover fully, and in more recent years, inflation has also played a role in eroding nest eggs.

For these reasons and more, many retirees are choosing to bolster their income through a variety of methods. Here are some of the ways Baby Boomers can create different types of income during their golden years:

• Consulting is a great way to generate some extra funds by leveraging your years of expertise to help those that are looking for advice. There are several ways to consult, but the most important aspect is to be sure that you are offering services that are in demand and within your field of expertise.
• The gig economy may get a lot of coverage for its employment of Millennials, but make no mistake about it. Boomers are taking full advantage. This can mean everything from working as a freelancer, driving for rideshare companies, or even hosting your home as an Airbnb. The beauty in it is that you can have control over how much, or little, you decide to work.
• There are also opportunities online through e-commerce. You can dropship, create content on platforms like YouTube, and even participate in affiliate marketing. This can all take a bit of effort in building a viable audience, but through consistency over time, engaging with your community, and providing a valuable approach to a niche you’re interested in, you can create relationships and generate sales.

Working after retirement isn’t for everyone, but part-time gigs are a great way to keep your hands busy and your mind going and supplement your retirement income. Doing so may help you even eliminate the need for downsizing your budget altogether or boost these initiatives to better prepare for unexpected expenses down the line.

If you plan to keep working after age 65, retirement can seem far away. Because you’re healthy and employed now, it’s easy to imagine yourself bringing home a paycheck in your 70s and even 80s.

It’s tempting to avoid retirement planning and saving. But it’s a risky strategy because, in many cases, you won’t get to choose when you retire.

For one thing, it’s not always possible to work through your 60s and 70s, no matter how much you might want to continue working. Mandatory retirement is illegal in most professions, but people do lose their jobs because of age discrimination—even though that’s against the law too.

Health issues can make it impossible to continue working in your current profession. Layoffs happen. You may stop working to take care of a sick spouse or frail, elderly parents, and it can be hard to return to the workforce as an older employee.

Goals and desires may change too. In your early 50s, you may envision continuing in your career for the rest of your life. But as you approach your mid-60s, your priorities might be different.

You may long for a more satisfying type of work, or more time to pursue hobbies, volunteer, start a business, spend time with the grandchildren, or travel.

Alternatively, you may have the freedom to choose, whether that means working full-time, part-time, as a volunteer, or as an independent business owner. Even the government encourages people to work longer—the “full retirement age” for Social Security is gradually going up until it hits age 67 for people born in 1960 or later.

Review Your Monthly Spending Habits

If you are preparing for retirement, you should also review your monthly spending to ensure you have a solid understanding of your expenses. By carefully tracking your spending, you can easily determine if you are living within your means and make any necessary adjustments to your budget.

One reason why reviewing your monthly spending is necessary is to identify areas where you can cut back. Downsizing your budget is particularly important if you are concerned about outliving your retirement savings or are living on a fixed income. By analyzing spending habits, you may be able to find ways to reduce unnecessary expenses, such as dining out less or canceling unused subscriptions, which can help stretch your retirement income further.

An essential tip when assessing your budget is determining essential and non-essential spending. This can be things like housing costs vs. the cost of updating your wardrobe each month.

Additionally, you should review monthly spending to identify any unexpected or irregular expenses that may arise. It is not uncommon for unexpected medical bills, home repairs, or other unexpected costs, which can put a strain on your budget to arise. By reviewing your monthly spending, you can ensure there is enough money set aside for these expenses and avoid any financial hardships.

Consider Lifestyle Changes

Downsizing your budget during retirement is a major life event that brings about significant changes in your lifestyle, including your health, expenses, and income. One significant change that often occurs after retirement is a shift in insurance needs. You may need to re-evaluate your health insurance, life insurance, and other policies to ensure you have adequate coverage.

For example, by age 65, you should be enrolled in Medicare health insurance. Along with Medicare, you’ll need to decide if a Medicare Advantage plan or Medicare Supplement (Medigap) plan is right for you to help cover your medical expenses. While most people choose to enroll in a Medicare Supplement plan, you’ll want to ensure you choose the best Medicare Supplement plan through the best Medigap plan carrier. Plus, you’ll need to find additional coverage through Medicare Part D for prescription drugs. It is equally important to enroll in the best Medicare Part D plan for your needs.

Another challenge that many retirees face is the development of medical conditions with age. As you age, you may become more susceptible to chronic illnesses or injuries that require medical treatment. This can have a significant impact on your budget, as medical expenses can quickly add up. You may need to consider budgeting for additional expenses such as prescription drugs, medical procedures, or long-term care.

Finally, through the process of downsizing and beyond, you’ll want to be sure to maintain positive mental health. 20% of those aged 55 and up can experience mental health issues, according to the CDC⁷, and lifestyle changes can bring on extra challenges. It’s important to focus on lifestyle changes that also help improve your mental state and to take care of yourself throughout the process of starting a new chapter.

Understand The Cost of Your Residence

Changes in residence can also affect a retiree’s budget. Many seniors choose to downsize their living arrangements, which can help save money on housing expenses. However, relocating costs, including moving expenses and potential home modifications, can be significant. If you move to a new state, you may need to consider changes in taxes and other costs.

While downsizing is common for retirees looking to reduce living expenses and live a simpler life, it doesn’t always translate to savings. There are several factors to consider when deciding whether to stay in a larger home or purchase a smaller one.

One of the main factors to consider is the cost of staying in a larger home. A larger home typically comes with higher expenses, such as higher mortgage payments, property taxes, and maintenance costs. These expenses can add up quickly, especially for retirees who may be living on a fixed income. In some cases, downsizing to a smaller home can result in significant savings on housing expenses.

However, it’s important to weigh the cost of staying in a larger home against the cost of purchasing a new, smaller home. The cost of purchasing a new home can be significant, including the down payment, closing costs, the cost of building materials increasing due to inflation, interest rate fluctuations, and real estate agent fees. In addition, smaller homes may come with their own set of expenses, such as homeowners’ association fees, special assessments, or remodeling costs.

One often overlooked aspect of selling your home when downsizing is that you’ll need to consider the cost of taxes. Furthermore, there are a ton of scenarios and stipulations that can affect the different ways taxes play out when selling your home, including your relationship status, the state you live in, and how long you’ve owned your home. Publication 523, Selling Your Home⁸, is a helpful, thorough resource provided by the IRS to help you better prepare for your specific situation.

Another factor to consider is the emotional attachment to the current home. Many retirees have spent years creating memories in their current homes, and it can be difficult to let go of that attachment. Although moving will provide an opportunity to create new memories, it’s important to weigh the emotional value of staying in a larger home against the financial value of downsizing to a smaller one.

In deciding to downsize, it’s important to carefully consider all factors and create a budget that considers all potential costs. It can be helpful to work with a financial advisor and real estate professional when making decisions about downsizing your budget and your home. Ultimately, the decision to downsize is a personal one, and you must weigh the costs and benefits of staying in a larger home or downsizing to a smaller one based on your individual needs and goals.

Create a Downsizing Plan For Your Home

Once you make the choice to downsize your home during retirement, having a plan in place is essential. There are several actionable tips to follow to do it without spending excess money and being cautious of your time.

First, it’s important to declutter and get rid of items that are no longer needed or wanted. This can help to free up space in the new home and reduce the cost of moving. It’s important to start this process well in advance of the move to avoid feeling overwhelmed and rushed.

Second, consider selling or donating unwanted items rather than throwing them away. This can help to offset the cost of the move and benefit those in need. Many communities have organizations that accept household items, clothing, and furniture donations. Alternatively, every penny counts, and when you factor in closing costs, movers, and the little things, such as eating takeout while your kitchen is out of order, you’ll want to save as much as possible.

Third, choose a moving company that specializes in downsizing. These companies can help to pack and move belongings efficiently and may even offer additional services, such as storage, that can be helpful during the downsizing process. Again, this expense may be necessary but should be planned for. On average, movers can range between $2,000 and $15,000⁹ depending on what you need to be moved and how far you need to move. Be sure to compare reviews and pricing options along with the features of each company.

Fourth, make a detailed plan and budget for the move. This should include a timeline for when tasks will be completed, a list of necessary supplies, and a breakdown of estimated costs. By having a plan in place, you can avoid unexpected expenses, reduce stress during the move, and use it as a guide when making decisions that may otherwise require additional funding or time.

Finally, consider the location of the new home or property carefully. While a smaller home may be more affordable, it’s important to consider other cost factors that come with moving, such as access to transportation, medical care, and social activities. Choosing a location that meets these needs can help to ensure a comfortable and fulfilling retirement and help you frame your expenses. You’ll still need to remember taxes, but using a cost of living calculator can help you gain a better perspective of the various costs you’ll face and how they stack up to your current home.

Making a plan is essential for knowing what to prepare for and the costs that will come up throughout the process of downsizing your home. By following these tips, you can make the downsizing process more manageable and create a comfortable and fulfilling retirement.

Work With a Financial Planner

One of the best ways to plan for retirement is by collaborating with an expert. Working with a financial planner is an important step both before and during retirement. A financial planner is much more than just someone to provide you with investment advice and can help create a retirement plan that takes into account your unique financial situation, goals, and concerns. Using the right expert may even help you avoid downsizing your budget altogether.

A financial planner can help you create a budget and develop a plan for managing finances during retirement. This can include creating a plan for generating income, managing expenses as you age, developing a strategy for managing investments, and generally, the various other considerations listed throughout this article that will affect your finances during retirement.

Financial planning with an advisor can include specific wealth management and planning around expenses that are more prevalent as you age, including healthcare costs during retirement. This can include creating a plan for long-term care, reviewing Medicare health insurance options, and developing a strategy for managing additional medical expenses Medicare benefits won’t cover.

A financial planner can even help you create a plan for leaving a legacy. This can include developing a plan for transferring assets to heirs, setting up trusts, and creating a plan for charitable giving. You can even use a financial planner to help you find the right place to live when downsizing your budget in your golden years in a way that maximizes your budget, lowers your taxes, and sets you up for your golden years.

When finding a financial planner, it is important to do research and find a professional with the necessary experience and qualifications. The Certified Financial Planner (CFP)¹⁰ designation is one of the most respected certifications in the industry, and individuals who hold this title have completed rigorous training and testing requirements.

When working with a financial planner, it is important to establish clear expectations for the process, including the costs and time investment required. Financial planners typically charge a fee for their services, which can vary depending on the complexity of your financial situation and the services provided. It is essential to ask about fees upfront and ensure that you are comfortable with the cost before moving forward.

Overall, the necessity of downsizing your budget during retirement is dependent upon your current and projected financial situation. For many, downsizing during retirement is the best option for living a comfortable life after years of hard work. By working with a financial planner, you can gain a clearer plan of what this means for your financial future and lifestyle.

Taking Care of Yourself is Key to Balancing Your Retirement When Downsizing

Airline safety announcements advise you to put your own oxygen mask on before you assist other passengers. This is a good way to think about balancing your retirement and your parents’ needs. If you haven’t already done so, meet with a financial planner or use an online retirement planning tool to estimate how much money you’ll need in retirement and what you need to do to be on track to meet that goal.

Being clear on your own financial goals will help you and your parents explore care options that you can all afford. You also must think about how much caregiving you can realistically do without compromising your own physical, mental, and emotional health.

When you understand your own personal and financial limits, it will be easier to set boundaries without feeling guilty that you can’t do more. Taking care of elderly parents isn’t easy. But by communicating and being proactive, you can plan for their care without sacrificing your future.

The same is true when it comes to adult children or other family members. While it’s noble to look out for loved ones, who will be there to take care of you if you exhaust your funds during retirement? Financial responsibility can be achieved through proper planning, communication, and setting ground rules for all parties.

The Benefits of Downsizing Your Budget During Retirement

When it’s all said and done, re-budgeting during your retirement is a great way to relieve several potential stress points that stem from money. As we see above, this goes far beyond your actual finances but can help you in terms of physical and mental health, relationships with loved ones, and even enhance your retirement as a whole.

While some initiatives may be best left to professionals, seniors still have several ways to improve their financial situation after retirement through common sense and smart financial practices. But it will take devising a plan, sticking to it, and being sure to hit multiple aspects of your life, such as healthcare, lifestyle factors, housing costs, and more.

Downsizing your budget during retirement is sometimes necessary and sometimes elective, but either way, there are plenty of benefits to be had. Develop a plan that works for your budget and lifestyle to maximize your golden years regardless of what might come.

Sources:

1. Protected Retirement Income and Planning Study, ALI. June 2023.
2. Income Change at Retirement, SSA. June 2023.
3. Debt among oldest Americans skyrockets 543% in two decades, CNBC. June 2023.
4. Grey Divorce: Its Reasons & Its Implications, Forbes. June 2023.
5. The Cost of Care Survey, Genworth. June 2023.
6. Nearly half of baby boomers have no retirement savings, The Hill. June 2023.
7. The State of Mental Health and Aging in America, CDC. June 2023.
8. The Publication 523, Selling Your Home, IRS. June 2023.
9. The Average Cost To Move Across The Country: 8 Ways To Save Money, Rocket Mortgage. June 2023.
10. The Standard of Excellence, CFP Board. June 2023.