NEW YORK, NY / ACCESSWIRE / June 18, 2024 / As your children leave home and embark on their own adventures, you may find yourself in a transitional period. With fewer responsibilities and more free time, many empty nesters experience a significant shift in their lifestyle and financial priorities. This can be the perfect time to focus on things like financial planning, health and fitness, and hobbies.
Whether you're eagerly embracing this new chapter or feeling a bit unsure about the changes ahead, here are five things to keep in mind as you navigate life as an empty nester.
Increasing your retirement savings
With your children out of the house, you might find yourself spending less on things like family outings, groceries, and gas. With decreased costs, many empty nesters take this opportunity to ramp up their retirement savings efforts. This can be a chance to redirect funds previously allocated to supporting your children's needs toward retirement accounts. Consider maximizing contributions to your employer-sponsored retirement plan or IRA. Solidifying your retirement planning at this stage can help you create a more comfortable and financially secure future.
Cutting unnecessary expenses
As your household size decreases, so can your monthly expenses. Take this opportunity to review your budget and identify areas where you can cut back on non-essential spending. Evaluate subscription services, dining out habits, and discretionary purchases to determine where you can make adjustments. Consider redirecting the savings toward your financial goals, whether it's bolstering your retirement savings, building an emergency fund, or pursuing new experiences and hobbies.
Downsizing
With the kids out of the house, you may find that your current home is larger than you need. Downsizing to a smaller, more manageable property can offer several benefits, including reduced maintenance, smaller heating bills, and lower property taxes.
Consider whether downsizing makes sense for you and explore housing options that align with your budget, location preferences, and plans. Moving to a smaller home can free up resources that can be allocated toward other financial goals or experiences.
Paying down debt
With reduced expenses, you may also be able to take care of any outstanding debts. The two steps above - downsizing and revisiting your budget to free up funds - can help you pay off debts faster.
Everyone's situation is different, but prioritizing debt repayment may help streamline your financial situation and reduce stress. This can be a good time to take stock of your existing debt, including credit card debt, loans, and mortgages, and develop a plan to pay down balances efficiently.
Planning for medical expenses
As you approach retirement age, planning for healthcare costs can become more important. Consider what your healthcare costs might look like in retirement. Take stock of your current health coverage and explore additional options for coverage.
With your kids out of the house, this can also be a good time to schedule doctor's visits you've been putting off, prioritize preventive care, and make healthy lifestyle adjustments.
The bottom line
Becoming an empty nester can offer the chance to reassess your financial priorities and set new goals. Take this opportunity to revisit your budget, consider future plans, and better prepare yourself for retirement.
As your children leave home and embark on their own adventures, you may find yourself in a transitional period. With fewer responsibilities and more free time, many empty nesters experience a significant shift in their lifestyle and financial priorities. This can be the perfect time to focus on things like financial planning, health and fitness, and hobbies.
Whether you're eagerly embracing this new chapter or feeling a bit unsure about the changes ahead, here are five things to keep in mind as you navigate life as an empty nester.
Increasing your retirement savings
With your children out of the house, you might find yourself spending less on things like family outings, groceries, and gas. With decreased costs, many empty nesters take this opportunity to ramp up their retirement savings efforts. This can be a chance to redirect funds previously allocated to supporting your children's needs toward retirement accounts. Consider maximizing contributions to your employer-sponsored retirement plan or IRA. Solidifying your retirement planning at this stage can help you create a more comfortable and financially secure future.
Cutting unnecessary expenses
As your household size decreases, so can your monthly expenses. Take this opportunity to review your budget and identify areas where you can cut back on non-essential spending. Evaluate subscription services, dining out habits, and discretionary purchases to determine where you can make adjustments. Consider redirecting the savings toward your financial goals, whether it's bolstering your retirement savings, building an emergency fund, or pursuing new experiences and hobbies.
Downsizing
With the kids out of the house, you may find that your current home is larger than you need. Downsizing to a smaller, more manageable property can offer several benefits, including reduced maintenance, smaller heating bills, and lower property taxes.
Consider whether downsizing makes sense for you and explore housing options that align with your budget, location preferences, and plans. Moving to a smaller home can free up resources that can be allocated toward other financial goals or experiences.
Paying down debt
With reduced expenses, you may also be able to take care of any outstanding debts. The two steps above - downsizing and revisiting your budget to free up funds - can help you pay off debts faster.
Everyone's situation is different, but prioritizing debt repayment may help streamline your financial situation and reduce stress. This can be a good time to take stock of your existing debt, including credit card debt, loans, and mortgages, and develop a plan to pay down balances efficiently.
Planning for medical expenses
As you approach retirement age, planning for healthcare costs can become more important. Consider what your healthcare costs might look like in retirement. Take stock of your current health coverage and explore additional options for coverage.
With your kids out of the house, this can also be a good time to schedule doctor's visits you've been putting off, prioritize preventive care, and make healthy lifestyle adjustments.
The bottom line
Becoming an empty nester can offer the chance to reassess your financial priorities and set new goals. Take this opportunity to revisit your budget, consider future plans, and better prepare yourself for retirement.
CONTACT:
Sonakshi Murze
Manager
sonakshi.murze@iquanti.com
SOURCE: Northwestern Mutual
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