Senior Discounts 101: Maximizing Your Golden Years With Smart Saving Strategies

​Many of us look forward to retirement. With no stress about work, early mornings, or traffic, you can finally enjoy your life full-time in your golden years. However, retirement also means you may lose part or all of your income and, subsequently, your financial stability.

So how do you navigate this and ensure you have enough money? The best way is to save as much money as you can, as early as you can. Research shows that about 15% of your annual income should go to your retirement savings if you start early. However, if you plan to wait till later to save, you might need to contribute more.

This article will discuss different saving strategies that can help you maximize and enjoy your golden years. Read on.

Take advantage of senior discounts 
Senior discounts are a good way to save money for your retirement. If you’re over 50, you can take advantage of these discounts across a range of goods and services. Money saved through these discounts can instead be channeled into your retirement plans.

DontPayFull.com is a platform where you can find coupons for senior discounts at restaurants, entertainment venues, transportation companies, and retail stores. You can even get more discount privileges when you join the American Association of Retired Persons (AARP). Getting between 10% and 50% off regular goods and services can go a long way in helping you save for retirement.

Create a bear market fund 
Investing in the stock and crypto market means entering the bear and bull markets. A bear market is a condition where prices are falling, while a bull market is characterized by rising prices. During a bullish market, you can withdraw money from your portfolio, but during a bearish market, withdrawing money from your investment portfolio could be a disadvantage. You could deplete your assets faster and miss out on the recovery phase. However, this strategy is not always advisable for every investor or in every situation, and should be approached based on your financial goals and market outlook.

To help protect your investments during a bear market, consider having an emergency savings account. This account should have enough money to cover up to three years. That way, when the market is down, you won’t have to withdraw money from your investment accounts.

When creating and withdrawing from your emergency savings account, factor in guaranteed income. For example, if the guaranteed income can cover 50% of your bills, only withdraw the remaining 50% from your emergency funds. This will prevent your emergency funds from depleting and cover you in the next bear market. 

Cut back on your expenses 
Unplanned discretionary expenses, such as leisure and entertainment, can mess up a well-laid retirement financial plan. You can’t do away with light bills, groceries, and other essentials, but you can reduce your non-essential expenses.

For example, switching from cable television to subscription-based channels can help you save up to USD$100 per month. Additionally, you can reduce the number of times you dine out in favor of cooking at home. You can also consider cutting your phone expenses. Look for mobile carriers that provide low-cost plans for seniors. You can also bundle friends and family, as it breaks down into a more affordable option than individual plans.

Be smart with your withdrawals 
Withdrawals will directly impact your savings during your golden years. Being smart with your withdrawals means you can stretch your funds for a longer period. One rule you can use to manage your withdrawals is the 4% rule. This rule states that retirees can withdraw 4% of their retirement savings annually and then adjust that amount every year thereafter for inflation.

The 4% rule is often associated with a balanced portfolio (like 50% stocks and 50% bonds), but it doesn’t dictate a strict allocation. Experts propose a mix of stocks, bonds, and cash, but the exact mix will depend on a person’s risk tolerance and market conditions.

The 4% rule is commonly associated with a retirement horizon of 30 years. If you plan to retire for a longer or shorter period, you must adjust your withdrawal strategy accordingly to ensure that your money lasts. 

Conclusion 
Saving for retirement is an intelligent way to ensure you’re financially stable during your golden years. You can still pay bills, travel, and invest without feeling strained. However, there are several strategies you should employ to avoid running out of finances in the first few years of retirement.
Taking advantage of senior discounts, making smart withdrawals, and cutting expenses will help you live within your means. Follow these and other saving strategies to maximize and enjoy your golden years.