Here is how you can make savings for retirement

Housing is one of the largest expenses, not only for working adults, but also for most of the retirees. Almost 34 per cent of the fixed expenses come from housing expense. Even in retirement this holds true. As one move towards retirement, he/she gets to know that managing money and covering your expenses becomes quite difficult. So, here are some of the saving tips that would help you to lower your expenses in retirement.

Pay off debt
Paying off your mortgage before retirement can sizeably reduce your living expenses, leaving you with higher cashflows to spend more on necessary things and on things that you love. Also, it improves your financial sustainability and security. So, it is important to pay off your mortgage before retirement itself. To achieve this, you may need to make certain adjustments to your cashflows to free up some cash for extra EMI payments. This can be done by cutting down discretionary spending before your retirement age.

Smaller home
When you are working, you may feel the need to have a bigger home. However, in retirement, downsizing to a smaller home would help you save a good amount of money that you may use for housing expenses. A smaller home means lower maintenance and, in turn, less stress on your cashflows.

Relocate
At present, due to your job or your child’s schooling, you may prefer to reside in the city area. But, living in a city area is of course a costly matter. Reason being, you might get the basic things at a bit higher cost. So, it makes a lot of sense in relocating to a place that is in the outskirts of the city. This will help you in lowering your cost of living without compromising on your standard of living.