Expenses to Eliminate Before Retirement
Plans for retirement keep changing in the U.S. Where the retirement age was set at 65 just a generation ago, it appears that many people will be working well past that and even into their 70s before they finally decide to call it quits. Whatever the age, experts say you should take specific steps to reduce your expenses before saying goodbye to the workforce. Paramount, say experts, is getting rid of your home mortgage and credit card debt.
The home mortgage is probably the biggest monthly bill, and doing away with it will no doubt give you much needed breathing room to live on whatever retirement savings, pension and social security you may have. Erasing whatever credit card debt you may have accumulated will also help you greatly in adjusting to the post-working life.
Credit card debt and its high interest payments may have been livable during your working days, but it will only eat into your retirement nest egg, experts say.
Other suggestions for reducing debt, particularly for married couples, is to get rid of that second car, especially if you’re still making payments. In addition, try to pay off whatever auto loans you may have.
Also refrain from making large purchases, and try to complete any needed home repairs. For that matter, experts say you may want to consider downsizing from larger home to a smaller one, then take the savings and add it to your nest egg.
Debt can overwhelm even the most financially savvy retiree. If you begin struggling to manage debt problems after retiring, bankruptcy may be an option to provide you with a fresh start. Contact a skilled Texas bankruptcy lawyer to learn about your options.