Advisers also recommend downsizing. While the level of downsizing for some could mean simply cutting down on small expenses such as eating out and shopping, for others, more drastic measures may be necessary.
“Downsizing often isn’t something that can be done on the peripheral,” Demmissie says. For some, it may even mean downsizing the house, especially if there is a lot of equity on the property.
Those eyeing retirement can even plan to move in with their adult children. Demmissie notes there has been an increase in multiple generations living under one roof. While living with children is not necessarily part of most people’s dream retirement, it can help make sure retirees do not outlive their money by cutting out housing costs and even some home-care costs. Moving to places with lower tax rates and costs of living, Demmissie notes, may also help people live their more ideal retirement at a lower cost.
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