How To Help Your Parents Save Money When Moving into Retirement

How To Help Your Parents Save Money When Moving into Retirement

Seniors save money while moving into retirement

How and where seniors choose to live in retirement has a huge impact on their finances. That's why most retirees, especially those with limited resources, move to a new place to stretch their savings. And when moving, it’s important to try and save money during the process.

But moving after leaving the workforce is a major decision that shouldn't be taken lightly. It's not uncommon to find retirees who regret after moving.

Some retirees want to stay near family, friends, and community and still manage to live within their means. Others can bear the thought of being away from loved ones.

We want your parent to enjoy their retirement. So regardless of your financial situation, here are a few tips to help them save money and do more in retirement. </section>

Make Sure Moving Is Right For Them

As you already know, moving to a new place in retirement isn't for everyone. The last thing you want is for your parents to move to a new area only find out that they jumped from the pot into the fire.

So make sure it's the right decision for them. Talk to them about their finances, why they want to move, and what they plan to do. Help them choose the right area or city. If you're wondering how, here are a few tips to keep in mind.

Look At The Cost Of Living

Generally, some cities are costlier to live in than others. Perhaps your parents chose to live in an expensive city because it gave them access to better jobs and higher pay.

But once they leave the workforce that may no longer be a motivating factor. Moving to a place with lower living costs may help them stretch your savings.

Tax Rates Matter

High taxes can eat into retirement savings or little income made during retirement. Although your parents may not be collecting a paycheck like before, they may still have social security income, savings, or a side hustle. Living in an area with less tax means they will have more money left to spend.

Eliminate The Need For A Car

Having a car can be very expensive. Studies show that it costs over $8,000 a year to own a vehicle. So if your parents live in a place where they must have a car, it can be wise to move. Walking is free and public transport is affordable.

Consider Job Opportunities For Seniors

Many seniors continue working for pay during their retirement years. But it might be difficult to find part-time jobs in a city with few opportunities.

If your retired parents are determined to continue working to boost their income, moving to a city with more job opportunities for seniors may be a good idea. Just be sure to look at other factors such as the general cost of living before moving.

Now that you know whether to move or not, let's look at what you can do to help them save money when moving.

Save Money On Boxes

Paying for boxes may seem affordable but that cost can quickly add up if you look at the number needed. Moving companies make money from people who are not well organized by having them pay for boxes. But that shouldn't happen to your parents.

Boxes are everywhere. You just need to find them on time. For example, you can collect some in local offices or even ask colleagues at work to donate.

Discard Some Items

Moving can be very expensive if you have many things. As your parents retire, help them get rid of items they no longer use.

Look at the magazines gathering dust at the corner, or sports equipment they don't use anymore. Advise them to get rid of them by either selling them or donating.

Pick The Right Time To Move

Most people love to move in the summer. But if you want to help them save, help them move in the off-season.

Since most seniors don't like stepping through puddles or slipping ice, find time to help them move. Moving in winter gives you and your parents a chance to source great deals and negotiate a lower rate.

Moving in retirement can help seniors save money. But it can also be extremely expensive if they're not prepared or don't do sufficient research. With these tips, you can help your parents save money by making sure moving is the right move for them, picking the best city, saving on boxes, and moving at the right time.

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