9 tips for saving money in retirement
Did your income go down when you retired? You can do more with less by trimming what you spend on certain products, services, and activities. How can you save money in retirement? Read on for nine easy tips.
1. Shop around for home and auto insurance and always bundle
Start shopping now. The property and casualty insurance market is highly competitive, so you should get at least three quotes. Be sure to bundle your home and auto insurance (and even your life insurance) to save on premiums. You might also consider raising your deductibles, as long as you have a small cushion if you need to make a claim.
2. Lower your banking fees, interest charges, and membership fees
Check whether your plan is right for your needs. Per-transaction fees are usually more expensive, but it depends. Use online bill paying whenever you can. You’ll save on the cost of cheques, envelopes, and stamps. And some financial institutions have low-cost accounts for seniors.
Does your credit card earn you rebates, points, or other rewards? Is there an annual fee? High interest charges? The card you’re using now might not be the best option for you. Do your research and compare.
3. Shop during the sales and look for deals
The nice thing about being retired is having the luxury of time. When you find something you like, wait for it to go on sale. Or see if you can get a discount.
- Many big-name outlets offer discounts on certain days of the week to shoppers over 55, 60, or 65 (fast food restaurants, pharmacies, hardware stores, bookstores, etc.). Check their website for details or ask at the customer service counter.
- Loyalty pays. Plenty of businesses reward loyal customers with discounts or freebies once you’ve spent a certain dollar amount.
- Have you signed up for a rewards program? With the Rabais Dollars CAA program, CAA-Quebec members enjoy instant discounts or CAA Dollars back when they do business with more than 100 partners throughout Quebec or online: shopping, leisure activities, health and well-being, accommodation, travel, etc.
4. Start couponing
Flyers, websites, (GoCoupons.ca, WebSaver.ca, Save.ca, etc.) and apps (Reebee, Flipp, etc.) are packed with electronic or paper coupons for things you use every day. Couponing has become a serious hobby, with trading and discussion groups where coupon enthusiasts come together to socialize.
5. Shop at thrift and second-hand stores
Thrift and second-hand stores are well stocked with items that are still in great shape. You can get a terrific deal and do something good for the environment, too. Maybe you’ll find that diamond in the rough at a fraction of the price!
Thrift stores fund assistance programs by selling clothes and other items to customers regardless income level. Find what you need (shoes, a coat, pajamas!) and help the less fortunate with your purchases.
6. Rent or borrow instead of buying
Has your favourite author come out with a new book? Look for it at your local library. Need a special tool? See if you can rent it from a hardware store. Eager to try downhill skiing? Seasonal rental programs are a great way to try it first before committing long term.
Looking after the grandkids? Instead of buying toys and games, borrow them from a toy library. For the cost of one toy—and often much less—you can choose from a whole range of toys and games and swap them out to keep things fresh and save on cupboard space!
7. Pick certain days to do certain things
Just like retailers, a host of museums and other attractions offer discounts to seniors. Usually these deals are only available on certain days, but for retirees with a flexible schedule, that’s no problem!
8. Save on transportation
Cars are expensive! We've come up with 15 simple things you can do to save money on gas. Are you a retired couple? Sell one of your cars and use some of the money you save to buy public transit passes at special senior rates for your weekly outings. Or consider signing up for a car-sharing plan. Think about renting a car for a special trips or using the train to visit out-of-town friends and family.
9. Do certain chores yourself
Do you usually pay the teen next door to mow the lawn and a cleaner to help with housework? You’ve got time on your hands now, so why not do it yourself on your own schedule? Bonus: You’ll get your exercise. It’s a win-win!
These small changes can make a big difference over the course of the year. Try them and start living large in retirement!
Save money with the Rabais Dollars CAA program
Nearly 3000 points of sale! All you need to do is show your CAA-Quebec membership card.