Start feathering your retirement nest by going out to lunch

One of the unfortunate truths is that our income stays fixed when we retire, but the cost of almost everything we need or use continues to go up.

The bright spot this year is that Social Security payments for more than 60 million Americans will increase, the first increase since 2009.

The typical retiree will be receiving $43 more each month, although a portion of that may be deducted to pay higher Medicare Part B premiums. Incidentally, it is best to sign up for Medicare Part B as soon as you are 65 to avoid a 10 percent premium increase for each delayed year of enrollment.

Most of us don’t want to have to forgo all luxuries and lead a miserly existence counting every penny, so we need to think of some creative ways to cut back in a manner that doesn’t hurt our lifestyle or ways in which we might generate additional income.

You might try to boost your Social Security check by not claiming it until age 70, as benefits increase each year you delay, up to that age. If you collect Social Security before your full retirement age, be sure you don’t earn more than $14,160 (or $37,680 the year you reach full retirement age), in order to avoid a benefit penalty.

After age 70, the sky’s the limit on what you may earn. If you have children younger than 18 or are disabled, you may be eligible for higher payments. Also, a former spouse may be eligible for payments if the marriage lasted at least 10 years and he or she has not remarried. Of course, widows and widowers are entitled to the higher earner’s full retirement benefit.

One of my favorite ways to save without feeling deprived is to eat out for lunch at favorite restaurants instead of dinner. The same menu — in more healthful, smaller portions — is often available at half the cost. Another way to trim the tab is to have dessert and coffee at home — they really can add a lot to the total check.

If possible, downsize to one car; the care and feeding of a second vehicle can put a big dent in a shrinking budget.

Housing, even if your mortgage is paid off, is both one of the largest expenses and the major source of savings for most retirees. Some people decide to move to an area with a more favorable climate or a lower cost of living, but the majority of retirees want to stay within 20 miles of their former home, where they are familiar with the neighborhood and close to friends and family. A big part of my work is helping people to make the best possible retirement lifestyle decision.

A reverse mortgage is suitable only in special circumstances, and it is not the best solution for many retirees. Continued...

Last, but definitely important and an option that is too often overlooked: Increase your income.

If you have a large home or apartment, you may be able to rent out some space to travelers or to a student.

Can you work for a temporary agency? Do you have skills that can earn money, such as cooking, knitting, driving, office skills, care giving? Are you good at selling? Small, local shops or established products to sell from your home can be good possibilities. Just be careful not to fall for any “earn a lot in your spare time” advertisements on television or the Internet. They usually want you to make a sizable investment in their product, and they greatly exaggerate what you will be able to earn.

If you gamble, that should be a line item in your entertainment budget; it should never be considered a possible source of extra income — unless you have shares in the casino.

- Article by Jean Cherni, founder of the retirement advisory service, Senior Living Solutions. Contact her at jeancherni@sbcglobal.net or 15 The Ponds at Hotchkiss Grove, Branford 06405.

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