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Thinking about one’s future is always something that stirs up a variety of emotions. For many, planning for the future brings about fear and worry, primarily because they retirementlivinghave to constantly think about their family’s financial security. More specifically, some feel that entering retirement can cause serious financial problems, and one question that always gets you thinking is this: Can you really live on less in retirement?

The amount of money you spend during retirement wholly depends on how you want to live your life during your retirement years. Some people claim they spend more money during their retirement — mostly due to the fact that they’re using their money to relax and enjoy their new, work-free lives. Some buy new houses or take more vacations. They are doing activities that they didn’t have time to do while they were still working.

People who live on less during their retirement years are able to do so simply because they are spending less. Retirement definitely lowers the cost of commuting, having lunch out, having separate work and casual wardrobes, as well as other costs that are typical for a working person. As mentioned, however, the amount of money you spend as a retiree is really dependent on your lifestyle and, as a result, will vary from person to person.

Still others choose to relocate after retirement to an area that has a much lower cost of living; sometimes even to a foreign country. They are able to maintain a comfortable lifestyle while living on a lot less than they used to.

In order to accurately access your financial situation as a retiree, here are a few things to consider:

– Where are you going to live when you retire? Stay at home or move?
– Will you be alone or with your family?
– Do you need physical assistance?
– Would you like to try other lifestyles? Live in another country?
– Do you have investments?
– Do you have insurance?
– Are there many debts you have to settle?
– How much are you getting from Social Security?
– Do you want to leave an inheritance?
– Do you have children or grandchildren you’d like to help support?

For those who are planning their retirement, one tip would be to ensure that you maintain a solid investment that will benefit you when you retire. Logically, retirement is supposed to imply fewer expenses, but with the economic crisis as of late, this may change. Be sure that you are financially prepared for such a situation.

In the end, how you life your life during retirement depends entirely on you, and your choices will determine whether or not you will be able to live on less during your future retirement. Make strategic financial decisions and have an idea of what you want your future retirement lifestyle to be now and you will be well on your way to living out your retirement dreams.

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