If social security is your only source of income after retirement, managing it well becomes crucial for a good life post-retirement. Decreased finances are one of the major downsides of retirement. Here are a few tips for you to follow to live comfortably with a limited income.
1. Delay taking your social security benefits
Although people become eligible to take their social security benefits at the age of 62, the actual retirement age varies for people from 65 to 67. If you delay taking your security, you can receive a fatter security check with people claiming at 70 being set to receive the maximum possible benefit.
2. Plan out your social security survivor benefits
For married couples, it is prudent to ensure that the other partner remains financially secured in case of the death of a spouse. In case the other partner was receiving higher social security, the surviving partner can receive their benefits in place of their own.
3. Saving on the investment fees
Retirees often take help from an investment advisor to plan their investments. The best way to not overspend their social security is to ensure that they do not overpay for the service.
4. Relocate to an affordable location
Money saved is money earned. If your social security is the only remaining source of income, it is better to relocate to a place with an affordable cost of living. Check out our list of the most affordable places in America for retirees.
5. Do not carry debts post-retirement
If you have any debts that you owe, it is better to clear them all out before you retire. It would save you a lot of stress and interest payments that will otherwise bite a huge chunk off your social security.
6. Take benefits of senior citizen rebates
Senior citizen discounts are not uncommon in America. You need to be extra vigilant in case you are eligible and know the available benefits. It will help you save a lot on your cost of living.
7. Relocate to a tax-friendly state
While social security benefits are available in most states in America, the number of applicable taxes in a location can hugely affect your budget. So, if you are living off only on your social security income, it is better to move to a state with lower amounts of taxes.
Know more about fourth stimulus payments here.