| By :
Molly Wider
If the thought of saving for retirement makes you uneasy, it may help to not focus on some obvious factors such as loss of a regular income. Instead, it could be very beneficial to look at a few of the other obvious factors that come along with retirement...the elimination of many monthly expenses. By the time you retire, your home will most likely be paid for. Mortgage payments are a large financial burden that likely will no longer exist for you and can easily make the difference between a positive or negative cash flow each month. If you no longer have this payment, it's a big one to check off the list and will definitely save you thousands each year. If you have managed to pay your mortgage, moving into a smaller house (now that the kids are gone) will afford you lower utility and tax bills each month as well as possibly free up some additional money that could be used towards retirement savings or paying off other bills. Childcare is another financial obligation that you can remove from the list of expenses. Your children will obviously be grown and out of the house, eliminating the need for babysitters and monthly day care fees. Car payments are also another payment that will most likely not be a concern. If you are one of the many people who trade their cars in every few years for a newer model, then you will have to keep payments as a monthly consideration. However, if you have one that is bought and paid for and has been kept in good condition, not only will car payments not be a monthly concern, you will most likely get a great deal on insurance coverage. If you are financially responsible, then other monthly debts like credit cards and student loan payments should also be non-existent as well. The elimination of such large payments will definitely open up much needed additional money. Getting rid of credit cards especially, allows seniors to get out from under high interest rates, which can easily eat up a significant part of your monthly living allowance. Life insurance policies are another factor when looking at potential monthly expenses. If you've purchased a cash value policy, it will most likely be paid off by the time you retire. If you've purchased a term policy, you may no longer need it when your retirement comes around. The elimination of all, or even some, of these financial obligations will make an enormous difference in the amount of money you will need each month to live. With proper planning many retirees are able to live comfortably on savings and Social Security Plans.
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