According to the Employee Benefit Research Institute, only 28 percent of retirees feel they have enough money saved up for their retirement. It's probably safe to assume that the rest of those folks are dealing with a significant amount of stress.
The older we get, the harder it is to pull in any income, meaning that your sunset years could be obscured by a stormy horizon. Not to fear, though—there are several things seniors can do to generate more cash, or spend less of it, after they've retired. Check out these five tips.
1. Cut Your Food Costs
If you're not clipping coupons from the Sunday paper to save on groceries, start now. It's a tried-and-true method of conserving funds, and it's just as effective as it was when you were younger. If you know your way around a smartphone, try out apps like Grocery Pal and Checkout 51. Like to eat out at restaurants? Visit deal-of-the-day websites like Groupon and LivingSocial to get 50-percent-off vouchers for restaurant trips.
2. Get Healthier
According to Fidelity, the average 65-year-old couple who retired last year can plan on spending $220,000 on healthcare expenses throughout their retirement. Although I don't dispute that number, I firmly believe it's possible to spend significantly less. Join the YMCA (the Silver Sneakers program may be offered for free) or start a workout program at home. Get active and you can not only live longer, you can lower your health insurance costs, to boot.
3. Reduce Entertainment Expenses
My mom is 82 years old. Sure, she could spend her money on theater tickets and fancy restaurants, but instead she invites all of her kids over every other Saturday for a fun game night—a great, inexpensive way to spend time with the ones she loves.
You can also save money by cutting the cable cord and signing up for Hulu Plus or Netflix. Or, rent movies from Redbox for a little more than $1 per day. There are countless ways to cut your entertainment costs during retirement, so don't let pricier options fritter away at your nest egg.
4. Save on Travel
Use websites like BookingBuddy or CheapOair to track flight prices and save on airfare. Your preferred airline's website may also offer a cheap rate that won't necessarily be advertised elsewhere. Travel during the week when possible, book your flights from Monday through Thursday when most sales are going on, and combine luggage to save on checked bag fees.
5. Get Rid of a Car
Got two cars? You probably don't need both of them. Even if you only have one, though, think seriously about selling it. If your neighborhood has a decent public transit system, you might be able to get around without a set of wheels altogether. You can not only save on gas by making this move, but also insurance, upkeep and a variety of other expenses associated with automobile ownership.
Drumming up extra money during retirement isn't an easy task. Banking institutions are not going to offer you retirement loans, and your kids are probably dealing with their own financial difficulties. Do what you can today to drum up more money for your golden years and you just might find that the retirement you're hoping for is within reach.
What other tips do you know of for retirees who need more money?
Martin Davis writes about senior living, retirement savings, investing, and smart money management.