The COVID-19 pandemic has impacted individuals of all backgrounds and lifestyles, causing everyone to take a closer look at their savings and spending habits. For retirees, minimizing financial output during this time is especially important. The following guide outlines a few effective tips that will decrease your spending and bolster your bank account during the pandemic.

How Retirees Can Enhance Their Savings During a Pandemic

1. Skip Monthly Distributions

Under normal circumstances, most people over the age of 72 are required to take a minimum distribution from their retirement account each month. However, given the state of the country, this minimum distribution requirement has been lifted for 2020.

If you’re in a position to decrease or skip these distributions altogether, you could give your savings time to increase. This will also reduce your tax bill next season.

2. Inventory Your Belongings

Over the years, you’ve likely accumulated a broad range of personal items, knickknacks, and other valuable belongings. If you’re seeking a way to increase your savings while also freeing up space in your home, consider having some of these items appraised and sold. This will generate a bit of additional income without requiring any spending. 

3. Find Ways to Cut Back

When you decided to retire, you likely devised a budget that reflected your desired lifestyle. With circumstances rapidly changing, it might be time to reevaluate your plan and see where you can make modifications.

Finding small ways to decrease spending or cut back on unnecessary expenses will slow your outbound cash flow and protect your savings. For example, cooking at home instead of ordering out will save you money every day and give you an activity to do as you stay at home.

If you need to open a new savings account during the pandemic, talk to the team at First State Bank in Russellville, AR. This locally owned bank has over 80 years of experience providing residents throughout Pope County with top-quality financial services. Call (479) 498-2400 or visit their website to learn more.