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It will probably be many years before we know the full extent of the economic impact and fallout of the coronavirus pandemic. One thing we know now, though, is that it’s affected jobs in America greatly and forced many seniors into early retirement.
First, there were layoffs and business closures affecting hundreds of thousands of American workers. Then as the workforce has grown increasingly disillusioned, we’ve entered the era of the Big Quit. Many employees have voluntarily resigned from their jobs amid wage stagnation and unprecedented inflation.
While this has affected all working generations, older Americans have been impacted. Here at Boomer Benefits, we have seen a surge of new Medicare beneficiaries contacting us because they have been laid off or offered a severance package to retire early.
Many of these new retirees had planned on several more years of full-time income and 401K contributions and were not ready for the surprise of an unplanned early retirement. If you are one of them, you may be wondering about various ways to save money during retirement.
Here are some ways for seniors to save money in their retirement years:
According to Sagewell Financial, there are thousands and thousands of available discounts for seniors that most people don’t know exist. These include government programs, shopping discounts, prescription savings, grocery store discounts, and more.
Here is a sampling of where you can save money, according to The Senior List website:
Many retirees are surprised to find that Medicare is not free. In 2022, most beneficiaries pay a standard Part B premium of $170.10/month. However, some pay even more based on their income.
While enrolling in a zero-premium Medicare Advantage plan won’t get you out of paying the Part B premium, it will at least cost you less in monthly premiums than a Medigap plan.
There are even some Medicare Advantage plans in certain counties that offer a temporary Part B Buyback. When you enroll in a plan that provides this benefit, the insurance company will give you credit toward part of your premiums for that calendar year.
Our team here at Boomer Benefits is well versed in these plans. We would be happy to help you check what might be available in your county.
T-Mobile offers an Unlimited 55+ plan that comes with unlimited text, talk, and data for as low as $27.50 per line when you order two lines.
Several other carriers offer discounts for AARP members, so check with your cell phone provider to see what you might qualify for if you are a member of AARP. This can be one of the many ways to save money during retirement.
Many municipalities offer property tax relief programs to older residents who meet the necessary income requirements.
In Texas, individuals aged 65 or older can qualify for a $10,000 homestead exemption for school district taxes. This is in addition to the $25,000 exemption for all homeowners.
Likewise, older Boston, Massachusetts residents who volunteer for a city organization can qualify for a $1500 property tax credit.
Sagewell Financial offers its banking members an annual Senior Benefits Checkup in which they’ll review your account to see if you are missing out on any tax breaks in your area.
Retirement time is a great time to re-evaluate any insurance policies. Suppose the kids have flown the coop, and you’ve finished paying off your home. In that case, lowering the amount of life insurance you have might make sense.
Auto insurance companies also present an opportunity for savings. For example, you may be able to lower your insurance premium by taking a mature driver’s course.
AARP also offers vehicle and property insurance discounts through The Hartford.
No one enjoys paying high taxes, and this includes retirees. Now that you don’t have a job holding you to a specific area, you could consider moving to a state that gives you some tax advantages.
For example, Texas, Florida, and several other states have no state income tax, making it easier to file your taxes and pay less of them.
You could also consider a state where the government doesn’t charge sales taxes, such as Montana, Alaska, New Hampshire, Delaware, and Oregon. However, other taxes, such as property taxes, might be higher in these states, so these options might make the most sense if you plan to rent an apartment rather than buy a home.
Switching banks is probably not something you’d think about when it comes to saving money during retirement.
However, reviewing your banking partner is a good idea to avoid unnecessary fees and keep more of your cash in your pocket. Many banks charge hefty fees for checks and overdrafts, too.
That’s why we were excited to learn about Sagewell Financial, which offers a bank account with free checks and no monthly fees. Sagewell also provides ongoing guidance to ensure you make the most of all the savings programs available. They are the only banking company offering a way for you to build your very own retirement paycheck.
MyPaycheck won’t cost you anything and allows you to turn your various income services like Social Security, pensions, and IRA withdrawal into one regular and predictable paycheck that you’ll get bi-monthly — and early!
Their Retirement Advocates will help you set up your customized paycheck to make the most of your banking experience with them. They can also help you shop for your long-term care and auto insurance regularly, so your premium stays as long as possible.
These are just seven different ways to save money during retirement. Speaking with professionals and exploring your options can be very beneficial, especially if you find yourself retiring unexpectedly.
