Seniors: Five Top Tips to Make Your Money Go Farther

You work hard your whole life so that you can have a comfortable retirement. Then the worst recession in seven decades comes along, and upsets all your plans. It's not your fault, and it's not fair. But life can be better if you just make the most of what you have. Here are five tips for doing just that.

1. Retire Later

You really need to consider this, no matter how keen you are to give up work. Suppose you'd be entitled to $1,000 in retirement benefits if you were to retire aged 66. You'll only get $750 if you retire at 62. But you'll get $1,320 if you can keep working till you're 70. Multiply that by your actual entitlement (estimate your Social Security benefits here), and you can see just how many more dollars a later retirement age will put in your pocket.

2. Budget Better

You thought you'd said goodbye to counting every penny years ago. But a thorough analysis of your spending is probably necessary. And you'll feel surprisingly better when you start making the sorts of savings that only a real understanding of your expenditure can bring.

For at least a couple of months, account for every cent you spend (remembering to go through your bank and credit card statements with a fine-toothed comb too), and identify where you can make painless savings. After that, either relax or carry on, depending on how much you enjoy the process.

3. Shop Around

The one thing retirement brings is time. Use some of it to make savings. Chase bargains everywhere: by checking your local supermarkets for offers, by clipping coupons, by buying goods cheaply online, and by shopping around for lower rate credit, higher rate investments, and lower cost telephone, Internet, and utility deals. If considering a reverse mortgage, check with several lenders for interest rate quotes before signing up for anything. FHA reverse mortgages, also known as HECMs for Home Equity Conversion Mortgages, may offer the best deal.

4. Actively Manage Your Money

The American Association of Retired Persons (AARP) suggests:

• Link a money market account to your checking account, and then maximize the interest you earn by micromanaging fund transfers online or by phone.
• Avoid low-interest passbook savings accounts.
• Don't let your bank roll over your Certificates of Deposit, but instead make sure your CDs are earning the maximum rate at every renewal.
• Make sure you understand your bank's rules so that you eliminate unnecessary bank charges.
• Only pay the IRS what you really owe (pay a good tax pro if needed), and don't settle income tax bills with credit cards.
• Don't pay bills before they're due.

5. Consider Downsizing

Now the kids have gone, do you really need such a big home? Alternatively, if you can't bear to move, then why not think about a reverse mortgage, which will free up some of the equity in your home? You can get a reverse mortgage quote here.