Managing your money in your retirement years can be considered a challenging exercise for many, especially with the increased cost of living.
A lot of the time as a retiree, you are forced to change your money management approach since you only have the money you receive from your retirement package to stretch throughout the month.
Running out of money during one’s retirement years is a major concern for many seniors and although there are reasons to be concerned, especially with the global economic pressures and increased cost of living. With proper financial planning and good money management tools to manage your monthly spend, one can, however, lessen the risk of running out of money in retirement.
Bridgette Walsh-Kruger, CEO of FNB Private Clients, says, “We know that when people retire, not only does their lifestyle often change but so does their money management needs. Even if you have planned and saved carefully for your retirement years, you will still need to carefully manage your income, expenses and your investments to sustain your reserves.”
Striking a balance between enjoying your retirement and having enough to live on can be tough and you may need to consider your budget approach a bit differently.
Here are different ways in which seniors can manage their money over their retirement years and ensure that it works for them:
- Trim your lifestyle and spending: Take a look at your spending over the past few months and identify certain areas of your spending that you can reduce or eliminate. It might be a membership you don’t use any more, or maybe you start cooking more meals at home instead of going out to eat as often.
- Consider starting a business or getting a part time job: Many retirees soon find that they miss having a job, or at least the responsibilities of working in certain settings. If you are looking to fill your days, consider starting up a business or taking a freelance job that will also provide an added income.
- Maximise your loyalty programmes or rewards: Most consumers have a number of loyalty programmes with cashback rewards or discounts on retail shopping. Use your loyalty rewards to cover some of your daily expenses or get discounted prices. For instance, FNB and Clicks have announced a special reward offer that sees senior customers earning double eBucks and double cashback every Wednesday when they shop at Clicks. The benefit is available exclusively to eBucks Rewards members and Clicks ClubCard members over the age of 60.
- Leverage your banking relationship: It is also important to thoroughly investigate ways to leverage your relationship with your bank and utilise the solutions it offers to cut costs and maximise income. FNB’s Retiree’s pay no monthly fees or a reduced 50% on their transactional accounts when they invest dependent on their investments being above a certain amount. They also increase their monthly interest income with preferential rates on their fixed deposits.
- Manage your money well: Make the most of your retirement years by setting a budget and tracking your spending.
Doret Jooste, CEO of FNB Money Management says, “The need to manage your money throughout all life stages remains fundamental. Through the tools that FNB provides, retirees are empowered with the ability to easily track and control their money. They are able to take control of their spend, set budget limits and get notified. From groceries, fuel, and medical expenses, these tools provide a clearer view of how customers spend their money and what their money could be doing for them.
“We have bespoke solutions including financial and fiduciary advisors to help retirees with their money management decisions and needs throughout this life stage. It is our aim to continuously review and enhance our solutions given the ever-changing environment that has become our new normal.”
For more information on solutions for retirees, visit the FNB website on www.fnb.co.za
Compiled by Justine Fortuin
