Retirement comes with a different lifestyle and a new way to think about finances. Since you will no longer be working once you retire, you will have to think about budgeting in a new way. Often, there are high costs that have to be managed on a fixed income. According to U.S. News & World Report, the biggest expense is housing.
So how can you save money after retirement? One idea is to sell your house and begin renting. In retirement, a home doesn't require extra bedrooms, won't have to be close to the office and school districts no longer matter. While a family home holds years of memories, it usually costs over $3,000 a year more than renting an apartment that will suit your new lifestyle.
Relief from financial stress is not the only benefit renting offers. Others include:
1. Less responsibility: As a renter, you are no longer responsible for costly or strenuous repairs. Your landlord will maintain the property and replace any broken appliances.
2. More freedom: Now that schools and offices are no longer pulling you to one place or another, you have more freedom to live where you want. Find a place miles from town where you'll have peace and privacy. Or move to a city, where you'll be able to walk or take public transportation to anything you need or want - this will further ease financial burden by cutting down on expenses related to car upkeep.
3. Fewer chores: In a rented space, you'll have fewer rooms to clean and maintain. Plus, any yard work will be left up to the landlord to organize. This means more free time to focus on what interests you.
How to find a place
Once you decide that you want to rent, you'll have to decide where you want to live. This is the hard part - you may not have had to look for a rental in a long time. Eddie Edwards, an agent in McLean, Virginia, told realtor.com that working with an agent would help retirees find a place that suits their new lifestyle. They will help you work within your budget and time frame. Plus, they will be able to find a place with the amenities you want.
"Seniors want a community that supports them and has the resources they need, particularly if they can't drive or know they won't be able to drive in the future," Teri Andrews-Murch, an agent from Auburn, California, told realtor.com. "They want to be near people who they can ask for help if they need it and also for social activities."
Once you find your perfect retirement rental, you will be able to carry out the retirement lifestyle you choose. The last thing to do is find the right renter's insurance for your new lifestyle. Just like your agent found you your perfect retirement rental, CoverHound will find you the perfect insurance plan to protect the things you fill your new home with.