Are contemplating retiring in the next few years? When you reflect on your holiday spending, would the same budget apply if you were retired? Even though the holidays are still open us, now is a good time to start planning for next year. How do you manage the holidays on a retiree budget? If you are a retiree or will be retiring in the coming year or years, then this article may be for you.
Experts say that the key is to find a balance between keeping some of the traditions and saying goodbye to those that no longer fit.
The first holiday after retirement can be a “golden opportunity” to set new expectations, accordingly to a recent article in the Chicago Tribune titled “Tips for recent retirees to stretch holiday budget.”
With new-found additional free time, retirees can offer dinners out or home-cooked meals, rather than spending money on expensive toys for the grown children. They can also write letters to their grandchildren filled with family stories or set spending limits on gifts that focus on creativity rather than on price.
Don't force sudden change all at once. If—and only if—you can afford to do so. The original article notes that keeping holiday budgets the same in that first year of retirement can be comforting when you've been hit with a lot of other dramatic changes.
However, what must change, is the conversation. With the family gathered, you can begin the discussion about your retirement in general, not just during the holidays. It's a chance to say, “We're retired now, and there are some changes we want to tell you about.” Also, it's the perfect time to talk about estate planning and to tell your kids that you have a solid retirement plan, and that they need not worry.
It’s a nice idea to also set up some new expectations. The original article also advises speaking with, or perhaps coordinating with, the other set of grandparents on the presents for children and grandchildren. No sense creating a sort of unnecessary “gift-giving arms race.”
Getting a plan together for your retirement is always a good idea and worthwhile. Talk with your estate planning attorney to help coordinate a sound strategy with your financial advisor.
Reference: Chicago Tribune (December 8, 2014) “Tips for recent retirees to stretch holiday budget”