Retirement is one of the biggest shifts in life, especially when it comes to your money. Retreat from work full-time, rather than focusing on family, travel or hobbies-all, making sure you have finance to do so, is a subtle balancing act.
Find out: What is the highest social security check per month?
Read Tous: 9 middle -class reduction tips to save monthly costs
Of course, social security can help to compensate for some income that is lost without working full -time. However, it is usually only part of the budgets of most retirees, along with 401 (k) S, saving, pension and more.
Gobankingrates talked to the retired retirement in the Washington DC area about how their finances have changed in the last two years since they receive social security benefits.
“Like your salary, when you work, the money corresponds to all the usual costs: food, mortgage, electricity, etc.,” said DC’s pensioner. “You try to stay with your potential and immerse yourself in savings when you can’t. For example, I took money from savings to pay for recent reconstruction of the bathroom.”
This retired and his wife decided to continue living in the DC district to keep her pension next to their daughter, her husband and granddaughter. The eldest son of the couple lives in Brooklyn, New York, which is more expensive than DC
If their children and grandchildren were on the eastern coast, the DC’s pensioner and his wife would look for the place to be cheaper.
“We don’t have to dive into our 401 (K) yet. We still have other savings we use, and we are not old enough to learn compulsory benefits,” explained the DC pensioner who is not 70 yet, and his wife.
Learn more: 3 Little Known Social Security Rules that could save thousands
The couple said they were “lucky to have hooked with a financial specialist in the late 90s when I worked in San Diego and we started to have more disposable income. I decided I had no time, knowledge or inclination to manage my money.”
“I am glad we got into our 401 (k) [plans] Early and religious to contribute, “the DC retiree continued.” In the 1990s, when I worked in Hearst in Pittsburgh, they introduced 401 (k) S and stopped finance our pensions. I went to several introductory seminars and realized that this is not nonsense.
The DC pensioner arranged to work as long as possible and to increase all of his 401 (K) contributions, as the individual is allowed to contribute more when the 50 -year -old, known as the “catch installment”.