Where to Splurge and Save In Retirement

Retirement marks the chapter where you savour the sweet rewards of your hard work, all while keeping a watchful eye on your wallet. To truly relish this phase of life, the key is mastering the art of selective spending and well-deserved extravagance.

Where to Save

Transport – If the idea of public transportation, carpooling, or slimming down to a solo vehicle doesn’t rev your engines, fear not! The highway to budget-friendly transportation is still paved with alternatives. Think about trading in your wheels for a more fuel-savvy option, perhaps a hybrid. This investment can lead to reduced gas bills and lower maintenance expenses in the long term. But hold on to your driver’s seat – crunch those numbers before hitting the road – often, maintaining your current vehicle comes with a lighter price tag than a full upgrade. Be sure to research and compare car models and fuel efficiency ratings to find the best option for your needs and budget.

Housing – Downsizing can be a great way to save money during retirement. You can sell your current home and buy a smaller, more heat efficient one that requires less maintenance and lower utility bills.

Downsizing isn’t necessarily a treasure chest of extra funds, but transitioning to a smaller, easy-to-care-for dwelling could work wonders for your budget. Paying off your mortgage before retirement not only dials down the stress levels but also provides greater financial security. With no mortgage chains, more of your retirement income can be dressed up for leisure and indulgence.

Healthcare – Healthcare costs can be a major expense for retirees. Fortunately, there are ways to save money on healthcare services. One way to do this is by exploring government subsidies available to you. In New Zealand, retirees are eligible for a range of subsidies, such as the Community Services Card, which provides discounts on prescription medicine, and the High Use Health Card, which provides free or low-cost healthcare to people with high healthcare needs.

Entertainment – Rather than investing in pricey entertainment choices, explore cost-effective or free options within your local area. Numerous towns and cities provide public parks, libraries, and community gatherings featuring an array of activities like complimentary concerts, festivals, and workshops. These opportunities not only enable social interactions but also keep you engaged without straining your budget. Moreover, tapping into senior discounts at movie theatres, museums, and cultural sites can further enhance your savings while you relish your passions and pastimes.

Where to Splurge

Travel – Retirement presents an ideal opportunity to embark on journeys and discover fresh destinations or revisit cherished ones. After dedicating years to work, it’s natural to desire rewarding travel adventures. Opting for this during the initial stages of retirement enhances the likelihood of possessing the necessary health, endurance, and mobility to make the most of your expedition.

Traveling serves to expand your perspectives, provide new experiences, and create lasting memories. While being prudent about your finances remains important, there’s room to indulge in select aspects of your travels, such as a lavish hotel stay or a unique experience. Leveraging senior discounts and travel bargains aids in cost management, yet occasionally, the added expenditure proves worthwhile for the indelible moments to cherish throughout your lifetime.

Family – Retirement presents an opportune moment to contemplate the genuine treasures in life, and for countless individuals, that treasure is family. Devoting time to loved ones and crafting significant recollections not only brings delight, but also contributes to our holistic well-being. In actuality, research reveals those who cultivate close relationships with family and friends often find greater happiness and enjoy extended lives.

While maintaining a retirement budget remains crucial, thoughtfully indulging in family activities and thoughtful gifts, aligned with your values and priorities, can impart authentic happiness to all involved. Creating positive memories with your family can also leave a lasting impact beyond your lifetime. Your children and grandchildren will look back on these experiences and cherish them for years to come. These memories can serve as a reminder of the love and connection you shared with your family, long after you’re gone.

Health and Wellbeing – You only retire once, and your health will largely determine how much you enjoy it. Retirement is a time to prioritise your health and well-being, and investing in activities and experiences that promote wellness is a great way to do this. While it’s important to stick to a budget and be mindful of expenses, it’s also okay to splurge on things like gym memberships, personal trainers, or wellness retreats. These investments contribute to sustained physical vitality, mental engagement, and a sense of purpose and contentment during this life stage.

Retirement can be a fulfilling and enjoyable time of life, but it’s important to be mindful of spending to ensure financial security. By splurging and saving in all the right places, you can have an amazing retirement without financial stress.

Whether you’re well into your retirement plan or just beginning to consider your options, you don’t have to navigate the process alone. Rach out to FoxPlan to book a 15 minute, no obligation, call with Warwick or one of our advisers.