To make the best use of your retirement, you need to learn to save on retirement and make it worthwhile. It seems difficult? We’ll show you that saving is easier than you think!
If you’re already retired or about to retire, you’ve probably gone through all the stages of planning for your retirement. Do you mean that now all you have to do is spend everything you saved or worked so hard to get? Not at all! Continuing to save and keep control of your budget at this stage of life is essential for making your dreams come true, such as taking that trip you’ve always wanted or not going through difficulties in a difficult time. That’s why we’ve selected four tips that are sure to help you save on retirement. Check it out!
1. Follow the 50, 30 and 20 rule
Organizing your budget has many advantages. In addition to keeping your bills in the blue, you save so you can make the best use of your free time and have an emergency reserve when you need it. The 50, 30, and 20 rule works like this:
- 50% of your pension goes to fixed expense, such as rent, condominium, food, water, electricity, and medication.
- 30% goes to variable expenses such as shopping and leisure.
- 20% goes to your savings!
2. Keep an eye on medications to save on retirement
Commonly, we spend more on medication than when we were young at this stage of life. Some surveys indicate that about 42% of people over 70 years old take more than four types of medication. That is a large monthly cost. To save money, check if the laboratory that produces the drug is part of a discount program. In the case of continuous use medicines, they can reach up to 70% of the value. Another alternative is to consider the Popular Pharmacy Program, which offers medicines for free or at a great discount. Finally, be sure to do some research, as the price difference between pharmacies can be huge.
3. Take advantage of special credit lines
Those who are retired and receive the benefit directly on their payroll can count on special credit lines. Interest rates are much lower, and the benefit amount (at most 30% of the benefit) is deducted directly from your retirement. How about taking advantage of this super advantage to exchange the very high-interest rates on that credit card debt for much smaller installments?
4. Pay attention to investments to save on retirement
Savings have historically been the preferred investment for many Canadians, mainly due to their security in times of runaway inflation. However, with current interest rates, some options are much more profitable and just as safe. To know which is the best investment for you, among all the factors to consider, are two very important ones: time and the marginal utility of money. In other words: the time until you need the resource back and its importance to the daily budget. Consider them when defining your investor profile and choosing how to save
In conclusion
Saving is a habit that can start at any time. If you are still not used to saving, follow our tips and see how, with organization, you can enjoy your retirement more peacefully and happily.