As the population in many developed countries is getting older, the share of retirees in their total population is rising, as well. Pension systems differ from country to country. So, for some groups of workers, the retirement income might not meet their demands once they retire.

That’s why each and every person who comes close to retirement needs to prepare their finances for the period after work.

In this article, we’re going to discuss several methods that can help new retirees organize their finances.

Retirement Benefits Plus Personal Savings

Different countries have different rules when it comes to retirement income.

For instance, retirement systems in most European countries used to rely heavily on the state pension.

Now that the population is getting older, a large number of countries has decided to conduct the reform of the pension system. In line with that, more and more states insist that people save money for retirement in their private funds, as well. That way, governments will be able to guarantee the minimum retirement income, while people who want a higher standard will have to put money aside.

The US already has a more individualized system. While employees in the US need to pay the Social Security compensation, this income is only one part of their retirement income. The other part is what they save in their private fund.

In a nutshell, if you want to retain the same standard of living when you reach the retirement age, you have to ensure two streams of retirement income. Here you can check out the most popular retirement accounts that will ensure a fair monthly budget when you stop working.

Additional Work After Retirement

Some fields of work allow people to work even after they’re officially retired. For instance, language teachers, translators, economic counselors or drivers can keep on working.

What’s more, even if you’ve been doing a physically demanding job, you can turn to your hobby and make some extra money that way. Sometimes people who have never had a hobby discover that they’re actually quite good at something when they retire.

Simply put, you have more time than ever before to think about different things. In line with that, you can read the post “Retirement Hobbies that Make Money”, published by Investopedia.

Apart from that, you can try to produce some food so that you don’t have to buy everything you eat.

For instance, if you live in suburbia, you can plant a garden with vegetables and save some money along the way. Not only that you’ll have eco food on your plate, but you’ll also concentrate on something tangible. This is something extremely important for the retirees who don’t cope well with the fact that they don’t work anymore.

On the other hand, even if you live in an apartment building or a nursing home, you can grow your own spices. Since some of these ingredients cost a lot, it’s another great way to keep at least some portion of your monthly budget intact.

Relocation for Lower Expenses

Only a small percentage of people can count on the same amount of money they were making when employed. Even if you ensure multiple streams of income, you’ll have to change something in your everyday life.

For starters, you can follow discounts and special campaigns for seniors. All the major brand names prepare special actions in which they offer food and other goods at lower prices for retirees. Since you don’t have to go to work anymore, you can use some of the time you have at your hands to plan shopping.

Apart from that, you can move to another part of the town or even to another country, where overhead costs are lower. For example, a large number of European pensioners move to Spain when they retire. The calculation is simple: they can afford more there with their retirement income than at home.

Also, some older people need constant medical supervision as they’re getting older. As explained by the care pros working for a live-in care agency from London, such treatment ensures independence and dignity for seniors. So, instead of living in a large house in suburbia, where such supervision could be scarce, you can choose to move to a smaller town with better health care.

Eliminate All the Debt Beforehand

As of 2016, one-half of American families aged 75 and older were in debt, according to the report published by CNBC. Some retirees didn’t manage to fix their credit card debts before retirement. Others had to pay their mortgage deep into their retirement.

Although it’s not easy to swim upstream in difficult economic circumstances, it’s crucial to understand that each person is responsible for their own finances.

With that in mind, everybody who has turned 50 should analyze their financial condition as seriously as possible. For instance, if you have several credit cards or cash credits, pay a visit to several banks and choose one loan that will cover all that debt. If possible, this new loan should be sorted out before you reach the retirement age.

Even if you have to pay your mortgage as a retiree, it’s lesser of two evils.


The global population is on the rise but people in developed countries as getting older. These two trends will cause serious earthquakes in retirement systems and pension funds.

A rule of thumb for people who are getting closer to retirement is to ensure two sources of retirement income. For instance, a combination of the state pension and private savings is only one way to reach that goal.

Furthermore, it’s important to reorganize your life in regard to monthly expenses and think about moving to a less expensive area.

If you can make some money on the side after you retire, even better, but make sure to pay taxes for that additional work.

Finally, if the fact that you’re retired doesn’t mean that you should just wait for things to happen. Keep scanning the world around you and adapt to the ongoing events to make the most of your retirement.

AuthorBio: Anne Harris is an HR specialist working for She eagerly shares her knowledge with her audience on various blogs. When she isn’t writing or attending wellness conferences, she likes to pack her rucksack and ride her day away on her bike or spend time with her friends.

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