With the increased cost of living, managing your money in your retirement years can be considered a challenging exercise for many. In most cases, as a retiree, you only have the money you receive from your retirement package to stretch throughout the month which requires a shift in your money management approach.
Running out of money during one’s retirement years, is a prime concern for many seniors. And although people do have reasons to be concerned with the global economic pressures and increased cost of living, with proper financial planning and sound money management tools to manage your monthly spend, one can lessen the risk of running out of money in retirement.
Bridgett Walsh-Kruger, CEO of FNB Private Clients says, “We know that when people retire not only does their lifestyle often change but so does their money management needs. Even if you’ve planned and saved carefully for your retirement years, you'll still need to carefully manage your income, expenses and your investments to sustain your reserves.”
Striking a balance between enjoying your retirement and having enough to live on can be tough and you may need to consider your budget approach a bit differently .
Below are ways in which seniors can manage their money over their retirement years and ensure that it works for them:
Trim your lifestyle and spending: Take a look at your spending over the past few months and identify certain areas of your spending that you can reduce or eliminate. It might be a membership you don’t use any more, or maybe you start cooking more meals at home instead of going out to eat as often.
Consider starting a business or getting a part time job: Many retirees soon find that they miss having a job, or at least the responsibilities of working in certain settings. If you’re looking to fill your days, consider starting up a business or taking a freelance job that will also provide an added income.
Maximise your loyalty programmes or rewards: Most consumers have a number of loyalty programmes with cashback rewards or discounts on retail shopping. Use your loyalty rewards to cover some of your daily expenses or get discounted prices.
Leverage your banking relationship: It's also important to thoroughly investigate ways to leverage your relationship with your bank and utilise the solutions it offers to cut costs and maximise income.
We know how important interest income is for retirees and to assist our customers we offer highly competitive interest rates on fixed deposits to help retirees secure a good rate of return on their investments and a reliable income supplement if they choose to have the interest paid out on a monthly basis.
Doret Jooste, CEO of FNB Money Management says, “The need to manage your money throughout all life stages remains fundamental. Through tools, retirees are empowered with the ability to easily track and control their money. They’re able to take control of their spend, set budget limits and get notified; when they are half way through their monthly budget and once they have hit their budget amount. From groceries, fuel, and medical expenses, these tools provide a clearer view of how customers spend their money and what their money could be doing for them.”
“We have bespoke solutions including financial and fiduciary advisors to help retirees with their money management decisions and needs throughout this life stage. It is our aim to continuously review and enhance our solutions given the ever-changing environment that has become our new normal, ”concluded Walsh-Kruger.
PERSONAL FINANCE