How to Live on a Budget During Retirement According to Darcy Bergen

Darcy Bergen

December 31, 2019

Darcy Bergen has over 20 years of experience helping clients with their financial planning needs from IRAs, Social Security benefits, and Fixed Index Annuities. Darcy Bergen is also the owner of Bergen Financial Group and has experience working with clients who have various financial concerns. Only about 71 percent of Americans are financially prepared for retirement, and the other 29 percent have to figure out how to make ends meet. Darcy Bergen shares tips for living on a budget during retirement. 

Give Yourself a Paycheck

While it might be tempting during retirement to know that you have access to a large pool of money, those funds are not unlimited. According to Darcy Bergen, the best way to stick to a budget during retirement is by setting up a retirement paycheck. Instead of having full access to their retirement accounts, retirees should set up automatic withdrawals from their accounts. They can choose to have money automatically transferred from their accounts on a weekly or bi-weekly basis to have more control over their budgets. Darcy Bergen mentions the name of this process is a systematic withdrawal, and they can ask their financial advisors for more information.

Housing and Accommodations

Those who want to live more frugally during retirement should give their housing situation a bit more consideration. While having a nice big house with a yard is great, retirees can accrue a lot of expenses while trying to maintain their house. Even yard maintenance work can add up in the long-run. Darcy Bergen recommends retirees who want to live on a budget consider moving somewhere where the cost of living is more affordable, downsizing, or find ways to get rental income. Many retirees also give up the big house and choose to move into a smaller condo.

Staying Healthy 

The average retiree spends $4,300 on out-of-pocket healthcare expenses. While there’s no way of predicting what their health will be down the line, retirees can save additional dollars by making an effort to stay healthy. Many retirees can prevent many conditions such as high cholesterol and even diabetes by eating right and staying healthy. Eating home-cooked hearty meals and exercising will help them save a few bucks on medical bills.

Take Advantage of Senior Discounts

For those seniors who want to make the most out of retirement on a budget, the best way is to take advantage of the many discounts available to them. Saving money by taking advantage of discounted movie tickets, deals while eating out, or senior days at the grocery store can help them make the most out of retirement. 

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